CTA Sues Federal Government Over Red Line Extension Pause, Project Funding

Courtesy of CTA

CHICAGO - On March 20, 2026, the Chicago Transit Authority filed a lawsuit against the U.S. Department of Transportation (USDOT) and the Federal Transit Administration (FTA) to restore funding for the Red Line Extension (RLE) and Red & Purple Modernization (RPM) projects.

The CTA says the FTA “committed to providing funds” for both the Red Line Extension and the Red and Purple Modernization projects, totaling roughly $2 billion in federal funds. RT&S reported in August 2024 that the CTA was expected to receive $764 million for the RLE project in 2025, an increase of $396 million in funding. The FTA signed Full Funding Grant Agreements for both projects by January 2025. Then, in October 2025, all federal funding for both projects was paused.

On October 3, 2025, the White House Office of Management and Budget announced the pause for CTA, and the FTA notified CTA it was reviewing projects. CTA states that on October 21, 2025, it provided more than 1,000 pages of information in response to federal requests. The USDOT requested more information on December 1, 2025 which the CTA provided by December 10, 2025. However, CTA says the USDOT has “not communicated with CTA regarding this matter or resumed funding.”

The lawsuit was filed in federal court in the Northern District of Illinois and “outlines the harm to residents and the risk to the project created by the funding pause.” Additionally, the lengthy pause threatens to halt progress on the projects unless funding is “promptly restored.” The Red & Purple Modernization projects are close to completion, and the Red Line Extension project began four years ago. CTA says its crews have been working on vegetation management, demolishing properties, and removing water lines to prepare for major construction. The CTA says the federal government has not upheld their statutory and regulatory requirements regarding suspensions of funding.

“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.”