President Donald Trump’s budget director announced on Friday that he pulled billions in federal funding from a major Chicago infrastructure project, marking Washington’s latest move to suspend finance flows to developments suspected of using diversity, equity, and inclusion measures.
White House Office of Management and Budget Director Russ Vought said the government is placing $2.1 billion allocated to the Red Line Extension and the Red and Purple Modernization Project “on hold” as the government investigates whether funding is flowing “via race-based contracting.” Those projects are going under administrative review, according to the Department of Transportation.
“Together, these critical reviews are intended to ensure no additional federal dollars go towards discriminatory, illegal, and wasteful contracting practices,” the Transportation Department wrote in a press release. “The American people don’t care what race or gender construction workers, pipe fitters, or electricians are. They just want these massive projects finally built quickly and efficiently.”
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The development comes after Vought revealed on Wednesday that the government had placed billions in funding on hold for several large-scale New York infrastructure projects due to similar concerns.
Vought’s scrutiny centers on worries that the federal funding is tied to another government program that set goals for a certain number of contracts related to federally funded infrastructure projects to be awarded to businesses owned by minorities, women, and “economically and socially disadvantaged” people.
The Transportation Department’s Disadvantaged Business Enterprise program has been targeted by the Trump administration due to concerns that it could contain “unconstitutional” DEI mandates that are out of line with federal antidiscrimination laws.
OMB said the Chicago Transit Authority, like the New York Metropolitan Transportation Authority, has used the DBE program to impose minority and other mandates on contractors and subcontractors associated with the developments being probed.
The Trump administration suspects that 21% of spending on the Red Purple Modernization has gone to DBE firms — some 119 companies in total.
“Illinois, like New York, is well known to promote race- and sex-based contracting and other racial preferences as a public policy,” the Transportation Department said. “The CTA has regularly touted DBE goals as a key part of its equity mission.”
Vought has come under criticism from Democrats over accusations that he is weaponizing the ongoing government shutdown to target blue areas.
The Trump administration has highlighted efforts to use the shutdown to trim the size of government.
“They’re taking a risk by having a shutdown,” Trump said of Democrats on Monday. “We can do things during the shutdown that are irreversible, that are bad for them and irreversible. Like cutting vast numbers of people out, cutting things that they like, cutting programs that they like.”
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Vought said Tuesday that “there are all manners of authorities to be able to keep this administration’s policy agenda moving forward, and that includes reducing the size and scope of the federal government.”
“We will be looking for opportunities to do that,” he added.
