Chicago Construction News staff writer
The U.S. Department of Transportation (USDOT) has placed two major Chicago Transit Authority projects under federal review amid concerns about race- and sex-based contracting requirements, withholding $2.1 billion in federal funding for the CTA Red Line Extension and the Red and Purple Modernization Program.
USDOT issued an interim final rule this week barring the use of race- and sex-based requirements in federal grant-funded projects. The letters to the CTA notify the agency that the two projects will be reviewed to ensure no unconstitutional or discriminatory contracting practices are taking place.
The CTA has previously reported that 21% of spending on the Red-Purple Modernization project through September went to Disadvantaged Business Enterprise (DBE) firms, totaling 119 companies. While DBE goals have been highlighted as part of the CTA’s equity mission, USDOT’s review is intended to ensure federal dollars are not supporting practices that could violate federal law.
“Together, these critical reviews are intended to ensure no additional federal dollars go towards discriminatory, illegal, and wasteful contracting practices,” USDOT said in a statement. The Department emphasized its commitment to completing the reviews quickly so reimbursements for ongoing work can proceed.
Federal officials noted that staffing challenges related to recent government shutdowns have slowed the pace of the analysis, but USDOT Secretary continued to affirm the importance of resolving the reviews efficiently.
The Red Line Extension and Red and Purple Modernization are among the largest transit projects in the region, and any delays could impact contractors, suppliers, and the broader construction schedule in Chicago.
