Overview

• OMB Director Russell Vought said $2.1 billion for the Chicago Transit Authority’s Red Line Extension and Red and Purple Modernization has been put on hold pending a review of contracting practices.
• USDOT said an interim final rule barring race- and sex-based contracting prompted the reviews and notified the CTA that both projects are under administrative scrutiny.
• The department said project reimbursements cannot be processed during the review, including a $300 million payment tied to New York’s Second Avenue Subway.
• Earlier in the week, the administration froze about $18 billion for New York’s Hudson Tunnel and Second Avenue Subway and said furloughs of civil-rights staff during the shutdown will extend the review timeline.
• State and local officials condemned the freezes as political retaliation, and reporting indicates the funding delays are likely to prompt swift legal challenges from affected authorities.