METRO Magazine Logo
MenuMENU
SearchSEARCH

UPDATED: Chicago Transit Authority Granted Temporary Restraining Order against FTA Over Paused Funding for Red Line Extension, Modernization

The Chicago agency seeks restoration of nearly $2 billion in federal funding, warning halted projects could impact transit access and economic growth.

A Chicago rail and rail car in the city.

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.

Credit:

Kevin Mach

3 min to read


A major Chicago transit expansion is now at risk, as the Chicago Transit Authority (CTA) takes legal action to restore billions in federal funding tied to two critical projects.

On March 20, the CTA filed a lawsuit against the U.S. Department of Transportation and the Federal Transit Administration (FTA), seeking the immediate restoration of funding obligated to CTA for the Red Line Extension (RLE) and Red and Purple Modernization projects.

Ad Loading...

According to an agency release, the FTA committed to providing funds for the projects, including nearly $2 billion in federal grant funding for the Red Line Extension. FTA officials signed Full Funding Grant Agreements for both projects, most recently, for the Red Line Extension on January 10, 2025. In October 2025, the federal government paused all funding for both projects.

“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 a 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.”

She added: “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 the USDOT and the FTA have not adhered to their own statutory and regulatory requirements regarding funding suspensions.

Court Grants CTA Temporary Restraining Order

On March 24, the U.S. District Court for the Northern District of Illinois granted CTA a temporary restraining order, ruling that the suspension of federal funding for the Red Line Extension and Red and Purple Modernization projects was “impermissible.”

Ad Loading...

"Today, the CTA secured a major victory for the Red Line Extension and the residents of Chicago’s Far South Side,”  Leerhsen said. “CTA promised the community that it would fight for RLE, and this ruling is a massive step toward restoration of funding for this historic project. RLE will provide transit access and opportunity for generations to come, and we are fully committed to seeing it move forward."

Unless the federal government obtains a stay of the temporary restraining order, the ruling requires payments to resume by Friday, March 27, at 10 a.m.

Timeline of Federal Action and Financial Impact

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, according to the agency, USDOT has not communicated with CTA regarding this matter or resumed funding.

Ad Loading...

The prolonged pause “threatens continued progress” on the Red Line Extension and Red and Purple Modernization projects. “If funding is not promptly restored, CTA will be forced to stop work on both projects,” the agency wrote in a release.

While the Red and Purple Modernization project is nearing “substantial completion,” initial work for the Red Line Extension 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.

Editor’s Note: This article was originally published March 23, 2026, and was updated March 26, 2026, for continued relevancy on the Chicago Transit Authority’s lawsuit against the U.S. Department of Transportation and the Federal Transit Administration.

More Rail

Governor Moore in a ceremony placing the last track
Railby StaffMay 8, 2026

Maryland Governor Installs Final Purple Line Rail During Tour

The moment marks the completion of 193,100 feet of track linking Prince George’s and Montgomery counties.

Read More →
PATCO's New Control Center
Managementby StaffMay 7, 2026

PATCO Opens New Operations Control Center

The new center serves as the central hub for monitoring and managing PATCO train operations, communications, customer service coordination, incident response, and overall operational oversight across the transit system.

Read More →
VIA Rail Canada logo
Railby StaffMay 7, 2026

VIA Rail reports Stable Ridership, Rising Revenue Amid Ongoing Challenges

Despite these pressures, VIA Rail is reporting that total revenues increased to $514.8 million as more travelers took advantage of the wide range of options available through the corporation’s new reservation system.

Read More →
Ad Loading...
SEPTA's advertisement for multi-rider feature.
Technologyby StaffMay 7, 2026

Philadelphia's SEPTA Introduces Multi-Rider Feature for Contactless Payments

Up until now, this feature was only available when using a SEPTA Key card.

Read More →
A Waev Gem vehicle with a ramp deployed.

ABC Teams with Waev, Knorr-Bremse in Boston Top Biz Briefs

Stay informed with these quick takes on the projects and companies driving progress across the transportation landscape.

Read More →
Books with graduation mortar board
Managementby StaffMay 6, 2026

New Chicago Scholarship Program Targets Student Pathways to Construction Careers

Created in partnership with Walsh-VINCI Transit Community Partners, the contractor for CTA’s historic $5.7 billion RLE project, the new $250,000 scholarship program will provide three students a year from 2026 to 2030 with $3,000 scholarships.

Read More →
Ad Loading...
Steve Goodreau
Technologyby Alex RomanMay 6, 2026

Trackless Rapid Transit: Hype or Viable Option?

Steve Goodreau of WSP explores the technology’s promise, limitations and where it may fit in the evolving transit landscape.

Read More →
Operation Lifesaver Rail Safety Education logo over railroad tracks background, representing rail safety awareness initiatives.
Railby News/Media ReleaseMay 4, 2026

Operation Lifesaver Awards Rail Safety Outreach Funds in 12 States

Operation Lifesaver awarded $220,200 in grants to 12 states to support rail safety campaigns focused on grade crossing awareness and trespass prevention.

Read More →
Caltrain trains on tracks
Railby StaffMay 1, 2026

Caltrain Survey Shows Record-High Rider Approval

The survey showed that commute trips still make up the majority of ridership, with most riders boarding 2 to 3 days a week, reflecting hybrid work schedules. Two-thirds of Caltrain riders have access to a car, while 37% of Caltrain riders are considered low-income.

Read More →
Ad Loading...
A person working on a bus
ManagementMay 1, 2026

Data-Driven Maintenance: Focusing Effort Where It Matters Most

Advances in data and analytics are giving transit agencies new opportunities to refine maintenance practices, improve efficiency and make more informed decisions about asset performance.

Read More →