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The Chicago Transit Authority (CTA) filed a lawsuit today against the U.S. Department of Transportation (USDOT) and the Federal Transit Administration (FTA), seeking the immediate restoration of funding obligated to CTA for the Red Line Extension (RLE) and Red & Purple Modernization (RPM) projects.
The FTA committed to providing funds for RPM and RLE, including nearly $2 billion in federal grant funding for RLE. FTA officials signed Full Funding Grant Agreements for both projects—most recently, for RLE on January 10, 2025. In October 2025, the federal government paused all funding for both RLE and RPM.
“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. “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, filed in federal court in the Northern District of Illinois, outlines the harm to residents and the risk to the project created by the funding pause. It describes how USDOT/FTA has not adhered to their own statutory and regulatory requirements regarding funding suspensions.
Timeline of Federal Action
On October 3, 2025, the White House Office of Management and Budget announced a funding pause on $2.1 billion in Chicago infrastructure projects. The same day, the FTA notified CTA that the agency was reviewing the projects.
CTA responded immediately and, on October 21, 2025, the agency provided more than 1,000 pages of detailed information in response to federal requests. On December 1, 2025, USDOT requested additional information. CTA provided the information and certified its compliance on December 10, 2025.
Since that certification, USDOT has not communicated with CTA regarding this matter or resumed funding.
Financial Impact
The prolonged pause threatens continued progress on RLE and RPM. If funding is not promptly restored, CTA will be forced to stop work on both projects.
While RPM is nearing substantial completion, initial work for RLE began four years ago. Work crews have been clearing trees, demolishing properties, removing water lines and performing other tasks in preparation for major construction activities.
About the Red Line Extension
The Red Line Extension will extend CTA service 5.5 miles south from 95th Street to 130th Street, serving approximately 100,000 residents in underserved communities on Chicago's Far South Side. The project is expected to generate significant economic development and job creation.
About the Red & Purple Modernization Project
The Red & Purple Phase One Project has rebuilt a century-old, 9.6-mile stretch of Red and Purple Line track structure and rail stations on Chicago’s North Side. As part of the award-winning project, which began in 2019, CTA opened four new, fully accessible and modern stations last summer. It has also included full reconstruction of the Red and Purple Line Express track structure and the installation of a new, world class signal system that provides smoother, quieter and more reliable rides for CTA customers. While the project is nearing substantial completion, work is ongoing.
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MEDIA NOTE: The lawsuit filed today is completely unrelated to the recent regulatory exchange between CTA and FTA regarding security. This matter is separate and distinct from CTA’s interaction with FTA about its Security Enhancement Plan, which was submitted on March 10, 2026. On Tuesday of this week, FTA issued a notice that the funds at risk would not be withheld from CTA at this time.
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