Administration Freezes Billions for Chicago Transit Projects
A federal freeze on billions earmarked for the city of Chicago infrastructure initiatives was announced on the weekend, as stated by OMB Director the official.
Targeted Initiatives
Included in the initiatives impacted by the financial halt involve the Red Line extension, which was set to start building in 2026 and improve transportation services to underprivileged areas in the city.
Moreover, modernization work on a series of public transport routes were also put on hold.
Explanation for the Pause
The official declared on X that the financing was “frozen to ensure funding is not flowing via race-based contracting.”
This announcement follows a parallel decision recently involving New York, where the director announced that $18 million for infrastructure would be halted, including money for a new rail tunnel under the Hudson River.
Federal Closure Context
This move happens as the national stoppage reaches its third day, with the Senate planned to take a vote later in the day.
Regardless of the planned legislative action, there is scant hope that a deal is imminent, as Democrats demand a set of health-focused agreements.
Wider Effects
Additionally, a increasing number of government departments and personnel are directly accusing Democrats for the stoppage.
The political messaging by offices is potentially a violation of the federal law, which forbids public servants from conducting electioneering.
Laid-off federal employees at some offices have been directed to set automated replies stating that they are not working because Democrats triggered a closure.
A progressive wing has chosen to shut down the United States government in the name of reckless spending and obstructionism,” a federal agency page reads.
Even, warnings over economic damage seem not to be stimulating negotiation attempts.
An analysis by EY Parthenon indicated that every week the stoppage persists will mean a $7bn impact to the US economy.
