Chicago Construction News staff writer
The Chicago Transit Authority has filed a lawsuit against the U.S. Department of Transportation and the Federal Transit Administration, seeking the immediate restoration of federal funding for two of the city’s largest transit construction projects.
Filed in federal court in the Northern District of Illinois, the lawsuit centres on a funding pause that has halted progress on the Red Line Extension (RLE) and the Red & Purple Modernization (RPM) program.
The FTA had previously committed billions in support, including nearly $2 billion in grant funding for the Red Line Extension. Full Funding Grant Agreements were signed for both projects, most recently for the RLE on Jan. 10, 2025. However, funding was paused in October 2025, placing both initiatives at risk.
“We are fully committed to the success of these projects, and we will take every step necessary to ensure that they move forward,” said CTA Acting President Nora Leerhsen.
Leerhsen said the Red Line Extension represents a transformative investment for the Far South Side, while modernization work on the Red and Purple lines has already delivered four new fully accessible stations.
According to the CTA, the White House Office of Management and Budget announced a pause on $2.1 billion in Chicago infrastructure funding on Oct. 3, 2025. The same day, the FTA informed the agency it was reviewing the projects.
The CTA submitted more than 1,000 pages of documentation on Oct. 21, followed by additional materials requested by USDOT on Dec. 1. The agency certified its compliance on Dec. 10, but says it has received no further communication since that time.
The lawsuit alleges federal agencies failed to follow their own statutory and regulatory requirements in suspending the funding.
The funding uncertainty threatens ongoing and planned construction activity tied to both projects.
The RPM project, which began in 2019, is nearing substantial completion. The work includes reconstruction of a 9.6-mile stretch of track and stations on Chicago’s North Side, along with installation of a new signal system designed to improve reliability and ride quality.
Meanwhile, early-stage construction for the Red Line Extension has been underway for four years. Crews have completed site preparation work including tree clearing, demolition, and utility relocation in advance of major construction.
If funding is not restored, the CTA warns it may be forced to halt work on both projects.
The Red Line Extension would expand service 5.3 miles სამხრ from 95th Street to 130th Street, improving transit access for roughly 100,000 residents in underserved Far South Side communities. The project is expected to drive economic development and create construction and long-term jobs.
CTA officials say they are continuing to work with community leaders and stakeholders while pursuing legal action to secure the funding needed to complete both projects.
