CTA Sues Federal Government Over Halted Funding for Red Line Extension, Modernization Projects (Chicago, IL) – The Chicago Transit Authority has filed a federal lawsuit seeking to restore billions of dollars in funding for two major transit projects after the U.S. Department of Transportation paused financial support late last year.
The lawsuit, filed in the U.S. District Court for the Northern District of Illinois, names the U.S. Department of Transportation (USDOT) and the Federal Transit Administration (FTA) and asks the court to order the release of funds previously committed to the Red Line Extension (RLE) and the Red & Purple Modernization (RPM) projects.
CTA officials argue the federal government has failed to follow its own rules in suspending the funding, putting both projects — and the communities they serve — 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 in a statement.
The FTA had previously signed Full Funding Grant Agreements for both projects, including nearly $2 billion in federal funding for the Red Line Extension. The most recent agreement, for the RLE, was finalized on Jan. 10, 2025.
However, on Oct. 3, 2025, the White House Office of Management and Budget announced a pause affecting approximately $2.1 billion in Chicago-area infrastructure funding. The same day, the FTA notified CTA that the projects were under review.
CTA officials say they responded promptly to federal requests for information, submitting more than 1,000 pages of documentation in October and additional materials in December, certifying compliance with federal requirements. Since then, the agency says it has received no further communication and funding has not resumed.
The funding halt has created uncertainty for both projects. CTA officials warn that without immediate action, work could come to a stop.
The Red Line Extension, one of the city’s most anticipated transit expansions, would extend service 5.3 miles south from 95th Street to 130th Street, bringing rail access to roughly 100,000 residents on Chicago’s Far South Side. The project has long been viewed as a key investment in underserved communities, with potential to drive economic development and improve access to jobs and services.
Initial work on the extension began about four years ago, including demolition, utility relocation and site preparation.
Meanwhile, the Red & Purple Modernization project on the North Side is nearing completion. The effort has rebuilt nearly 10 miles of track and infrastructure, replaced aging structures more than a century old, and delivered four new fully accessible stations. The project also includes upgraded signal systems aimed at improving reliability and ride quality.
Despite that progress, CTA officials say the funding pause threatens final construction phases and overall project completion.
Leerhsen emphasized the broader impact of the projects, calling the Red Line Extension a “historic investment” that would expand opportunity for Far South Side communities while highlighting the modernization project’s already visible improvements for riders.
The lawsuit seeks a court order compelling federal officials to release the obligated funds and allow both projects to proceed without further delay.
The case sets up a high-stakes legal battle over federal infrastructure funding, with significant implications for transit development in Chicago and the future of major federally supported projects nationwide.
CTA Sues Federal Government Over Halted Funding for Red Line Extension, Modernization Projects
