The Chicago Transit Authority (CTA) has officially filed a lawsuit against the US Department of Transportation (USDOT) and the Federal Transit Administration (FTA), seeking the immediate restoration of funding obligated to CTA for both the Red Line Extension (RLE) and Red & Purple Modernization (RPM) projects.
Previously the FTA committed to the provision of funding for both the RPM and RLE, including almost 2 billion USD in federal grant funding for the RLE.
The pause in funding may, according to the CTA, threaten the successful completion of the RLE & RPM projects
© CTA
FTA officials also signed Full Funding Grant Agreements for both projects, including most recently for the RLE on 10 January 2025. In October 2025, the federal government paused all funding for both RLE and RPM.
CTA Acting President Nora Leerhsen said:
We are fully committed to the success of these projects, and we will take every step necessary to ensure that they move forward.
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.
The lawsuit, which has been filed in federal court within the Northern District of Illinois, outlines the harm to residents, as well as the risk to the project the funding pause has created. It also describes how the USDOT & FTA have not adhered to their own statutory and/or regulatory requirements regarding funding suspensions.
On 3 October 2025; the White House Office of Management and Budget formally announced a funding pause on 2.1 billion USD for Chicago-based infrastructure project. On that same day, the FTA notified the CTA that the agency was reviewing the projects.
The CTA then responded immediately and, on 21 October 2025, the agency supplied over 1,000 pages of detailed information in response to federal requests. On 1 December 2025, the USDOT then requested additional information – which was subsequently provided by the CTA, certifying its compliance on 10 December 2025.
Since that certification, the CTA has claimed that the USDOT has not communicated with the CTA with regards to this matter, and it has not resumed funding.
The CTA has stated that this has led to a prolonged pause, which, if continued, will threaten progress on both the RLE and RPM projects and, if funding is not reinstated, the CTA will be forced to stop work on both projects.
Initial work on the RLE began four years ago, whilst the RPM is nearing ‘substantial completion’. Work crews have recently been clearing trees, demolishing properties, removing water lines and performing other tasks in preparation for major construction activities.