Keep Reading: CTA Sends Expanded Security Plan to FTA, Boosts Policing Hours by 75%
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.

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.
Kevin Mach
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.
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.”
"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.
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

Amtrak Finalizes Pre-Development Agreement for Penn Station Overhaul
The agreement advances plans for a $7 billion to $8 billion transformation of New York's busiest transit hub, with construction expected to begin by the end of 2027.
Read More →
New York MTA Leverages Zoning Program to Advance Station Accessibility
Accessibility enhancements at Nevins St Station will be financed through a development agreement tied to the MTA's Zoning for Accessibility initiative.
Read More →
Virginia's $28.5B Transportation Plan Targets Transit and Rail
Approved by the Commonwealth Transportation Board, the program supports ongoing infrastructure projects while providing new investments in transit, state of good repair and transportation alternatives.
Read More →
DOT: Brightline Corridor Incidents Fall 30% Following Federal Safety Upgrades
Safety improvements funded through a $25 million federal investment are credited with reducing trespassing and train-vehicle collisions along the Brightline Florida corridor.
Read More →
D Line Expansion Fuels Growth Across LA Metro's Rail System
Weekend rail ridership was especially strong, soaring 18% as riders embraced expanded access to jobs, entertainment, dining, and cultural destinations, said the agency. Total system ridership for May, including bus and rail, was 26,966,657.
Read More →
Southern California's Metrolink Debuts Contactless Fare Payment Pilot
Customers traveling between Redlands and Los Angeles can now tap their preferred payment method, including a credit or debit card, mobile wallet, or wearable device, at station validators before boarding and again while exiting.
Read More →
California's BART Approves FY27 Budget While Maintaining Service Levels
The budget covers July 1, 2026, through June 30, 2027, a period when pandemic emergency funds run out, the District faces a structural deficit of $375 million, and a regional transit funding measure may appear on the November ballot.
Read More →
Penn Station Transformation Advances with Design Unveiling
The historic redesign will transform the busiest transit hub in the Western Hemisphere from the tracks to the street level, creating a more efficient, cleaner, and functional experience for more than 600,000 daily commuters and millions of visitors.
Read More →
Second Avenue Subway Phase 2 Advances into Major Construction Stage
New York Governor Kathy Hochul joined leadership from the MTA, elected officials, and Harlem community leaders to break ground on the major construction stage of the transformative Second Avenue Subway Phase 2 project.
Read More →
The Invisible Infrastructure of Passenger Flow
What a seat reservation system on Austria’s Railjet trains reveals about the future of rider experience, and why U.S. agencies should pay attention.
Read More →