The Chicago Transit Authority (CTA) filed a lawsuit on March 20 against the U.S. Department of Transportation and the Federal Transit Administration, seeking to restore $3.1 billion in federal funding for the Red Line Extension and Red and Purple Modernization projects.
The lawsuit comes after the Trump Administration paused billions of dollars in federal grants last October, citing concerns about race-based contracting requirements. The CTA argues that withholding these funds threatens crucial infrastructure improvements in Chicago.
According to the CTA, the federal transportation department issued an interim final rule barring race- and sex-based contracting requirements from federal grants, placing both projects under administrative review. The agency said it responded promptly by submitting over 1,000 pages of information in October and additional documents in December but has not received further communication from federal officials since then. In its complaint filed Friday, the CTA accused the government of trying to “hold hostage billions of dollars in federal grants for crucial infrastructure projects”—a move it claims violates federal law and constitutional separation of powers.
Nora Leerhsen, Acting President of CTA, said her department “will take every step necessary to ensure” both projects move forward. She added: “The Red Line Extension is an historic investment into the Far South Side of Chicago that will transform public transit and create new economic opportunity for the communities it will serve. Additionally, our work on the Red and Purple Modernization Project, which is ongoing, has resulted in four new, fully accessible and modern stations. These are both meaningful, impactful projects and we are working closely with community leaders, elected officials and other stakeholders to ensure that both are seen through to completion.”
A spokesperson for the U.S. Department of Transportation responded: “[We] will fight to ensure federal dollars do not go towards discriminatory, illegal, and wasteful contracting practices. The American people don’t care what race or gender construction workers, pipefitters, or electricians are. They just want these important projects built quickly and efficiently.” According to the complaint filed in Northern District of Illinois, most grantees affected by new requirements were allowed continued funding while applying for recertification; however, only two CTA grants—and two others for New York and New Jersey—were frozen without lawful justification.
The lawsuit also alleges political retaliation as a motive behind freezing funds but clarifies it is unrelated to recent disputes between CTA and federal officials over crime on transit lines. After a high-profile incident last November prompted calls for improved security measures on trains, CTA increased police presence and expanded patrols following warnings that millions more could be withheld unless safety plans were strengthened.
Looking ahead, Leerhsen stated earlier this week that with revised safety plans underway—and assurances that at-risk funds would not be withheld—the agency remains committed to advancing both major transit initiatives.
