Judge orders Trump administration to release Chicago funds

A U.S. judge ordered the temporary release of $3 billion for Chicago rail projects. The ruling blocks the administration from withholding the federal funds.

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A federal judge in the United States has ordered the administration of President Donald Trump to temporarily unfreeze approximately $3 billion in funding for rail projects in Chicago. The decision, issued on Tuesday, follows a legal challenge by the Chicago Transit Authority (CTA), which alleged that the federal government had withheld millions in reimbursements since October from grants previously approved under the prior administration. The city described the funding suspension as an unlawful act of political retaliation.

U.S. District Judge Thomas Durkin granted the CTA's request for a temporary restraining order but put the ruling on hold until Friday to allow the federal government time to appeal. The judge observed that the Transportation Department had only applied specific concerns regarding antidiscrimination compliance to major projects in Chicago and New York, suggesting the reviews might be a pretext for other interests.

"This indicates the reviews are a pretextual basis for some other interest unrelated to actual compliance."
A subway train travels along an elevated track on Wabash Avenue in Chicago, Illinois, as seen in August 2025. Photo: REUTERS/ Jim Vondruska

The CTA, which oversees the second-largest public transportation system in the country, stated that the frozen grants are essential for modernizing century-old track infrastructure and extending a rail line by 5.5 miles. Without the funding, the agency warned that it would be forced to halt these projects by the end of the week. Chicago officials noted that the system handles approximately one million rides daily and requires these upgrades to maintain service.

"The ruling is a massive step toward restoration of funding for this historic project."

The legal battle in Chicago is part of a widening dispute between the Trump administration and Democratic-governed cities over federal transit funding. Similar lawsuits have been filed in New York, where the Metropolitan Transportation Authority (MTA) recently sued the administration after nearly $60 million was withheld from a $7.7 billion subway project. Earlier this month, a federal appeals court also ruled that the administration must continue payments for the $16 billion Hudson Tunnel Project after more than $200 million in payments were suspended.

The Transportation Department did not immediately comment on the ruling but previously asserted its commitment to ensuring federal funds are not directed toward discriminatory or wasteful practices. In its lawsuit, the CTA argued that the government was effectively disrupting critical infrastructure development.

"The federal government is attempting to hold hostage billions of dollars in federal grants for crucial infrastructure projects in the City of Chicago."
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