On Friday, the Trump administration announced it has placed a hold on $2.1 billion earmarked for infrastructure projects in Chicago, specifically targeting funding for the Blue State initiative. This move marks another controversial decision by the White House.
Russ Vought, the Director of the Office of Management and Budget (OMB), noted on X that this funding was intended for the extension of the city’s red lines and the modernization of red and purple lines.
He stated the rationale was to “prevent funding from flowing through racial-based contracts.”
The Department of Transport echoed this reasoning, stating that the funds were frozen to conduct reviews aimed at stopping the allocation of federal dollars toward discriminatory and illegal contracting practices.
In recent months, President Trump has frequently criticized Illinois Governor JB Pritzker and Chicago Mayor Brandon Johnson, even suggesting the deployment of the National Guard to address rising crime in the city. Both potential candidates for the 2028 presidential election, Pritzker and Johnson, have strongly opposed the idea of deploying military personnel within the city.
Spokespersons for Johnson and Pritzker did not provide immediate comments regarding this issue.
When he took office, Trump signed an executive order aimed at rolling back diversity, equity, and inclusion (DEI) initiatives within the federal government, seeking more control over federal grant recipients and contractors applying DEI policies.
Since the government shutdown commenced at 12:01 am Wednesday, Vought has indicated that numerous projects in Blue State have either suspended or had their federal funding cancelled.
On Wednesday, Vought mentioned that about $18 billion for infrastructure projects in New York City, including the Hudson Tunnel Project—which aims to connect New Jersey and New York Metros—was also at risk.
Later, the administration unveiled plans to cancel $7.5 billion worth of Biden-era funds dedicated to various energy projects, particularly affecting states that had been targeted by former Vice President Harris in the past.
Trump has also warned of possible layoffs for thousands of federal workers amid the ongoing shutdown.
