Federal Government Pauses $2.1 Billion for Chicago Infrastructure Projects
A federal pause on massive funding allocated for Chicago infrastructure plans was declared on Friday, per OMB Director Russ Vought.
Impacted Projects
Among the plans impacted by the financial halt involve the public transit expansion, which was scheduled to begin construction in 2026 and extend public transport to underprivileged communities in the city.
Additionally, upgrading efforts on a number of rail lines were also paused.
Reasoning for the Freeze
The official wrote on online platforms that the money was “put on hold to ensure funding is not flowing via race-based contracting.”
The declaration comes after a similar action recently involving NYC, where Vought said that millions for transportation would be frozen, including funding for a new train tunnel under the Hudson.
Government Closure Background
This action comes as the national stoppage reaches its 72nd hour, with the upper chamber scheduled to hold a vote later in the day.
Despite the scheduled legislative action, there is little confidence that a deal is imminent, as Democrats hold out for a number of health-related agreements.
Additional Consequences
Meanwhile, a rising amount of federal agencies and employees are explicitly accusing Democrats for the closure.
This government communication by agencies is potentially a infraction of the federal law, which prohibits federal employees from engaging in partisan political activity.
Laid-off federal employees at certain departments have been instructed to set email responses explaining that they are not working because Democrats triggered a stoppage.
“The progressive wing has chosen to shut down the United States government in the name of reckless spending and obstructionism,” a federal agency page states.
Additionally, warnings over economic damage don’t appear to be prompting compromise efforts.
An analysis by a consulting firm estimated that every seven-day period the shutdown persists will mean a $7bn hit to the US economy.
