WASHINGTON, 03 October 2025 – U.S. President Donald Trump’s administration has frozen $2.1 billion in federal transit funding for Chicago, escalating tensions with Democratic-led states and cities as the government shutdown entered its third day.
Budget director Russ Vought said the money—earmarked for the city’s elevated train lines—was suspended to ensure it was not “flowing via race-based contracting.”
The move marks part of a broader financial freeze by the Trump administration, which has now withheld at least $26 billion from Democratic strongholds. Earlier this week, the White House blocked transit projects in New York, home to top congressional Democrats, and $8 billion in green-energy programs across states including California and Illinois.
Trump has frequently targeted Chicago, the nation’s third-largest city, both rhetorically and politically. He has threatened to deploy the National Guard and taken aim at Illinois Governor JB Pritzker, a Democrat widely viewed as a 2028 presidential contender.
Shutdown Impact Deepens
The funding freeze comes as Congress remains gridlocked over competing plans to end the shutdown. The Senate is expected to vote Friday on both Republican and Democratic proposals, but neither is likely to pass. If the deadlock continues into Saturday, the current shutdown will become the fifth-longest in U.S. history.
So far, the standoff has locked up about $1.7 trillion in government funding, nearly one-quarter of the federal budget. Essential programs such as healthcare, retirement benefits, and interest on the $37.5 trillion U.S. debt continue to operate.
The shutdown has already suspended scientific research, financial oversight, and numerous public services, while 2 million federal workers face unpaid furloughs. “Essential” staff, including troops and airport screeners, must continue working without pay.
The Labor Department also failed to release its monthly unemployment report, leaving markets without a key gauge of U.S. economic health.
Healthcare at the Core of the Fight
Democrats insist any spending package must include an extension of pandemic-era healthcare subsidies, due to expire in December, which help 24 million Americans afford coverage. Republicans argue the healthcare issue should be addressed separately.
Meanwhile, Trump has doubled down on targeting funds for Democratic-leaning states and warned of further federal job cuts, on top of the 300,000 workers his administration is already set to force out by year’s end.
If unresolved, the shutdown threatens to disrupt air travel, food assistance programs, and even federal courts. Federal employees would miss their first paycheck by mid-October.
The longest U.S. shutdown to date lasted 35 days in 2018–2019, also during Trump’s presidency.
