CTA files lawsuit against FTA, USDOT over Red Line Extension, Red and Purple Modernization funding

The Chicago Transit Authority (CTA) filed suit seeking the restoration of funding designated to the agency for the Red Line Extension (RLE) and Red and Purple Modernization (RPM) projects against the U.S. Department of Transportation (USDOT) and the Federal Transit Administration (FTA).

The FTA was supposed to provide nearly $2 billion in funding for the RLE project and funding for the RPM. FTA officials signed the full funding grant agreements for both projects—most recently for RLE on Jan. 10, 2025. In October 2025, the federal government paused all funding for both RLE and RPM.

“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.”

Filed in the federal court in the Northern District of Illinois, CTA says its lawsuit outlines the harm to residents and the risk to the project created by the funding pause. It describes how USDOT and the FTA have not adhered to their own statutory and regulatory requirements regarding funding suspensions.

Timeline of federal action

• Oct. 3, 2025: White House Office of Management and Budget issued a funding pause on $2.1 billion for Chicago infrastructure projects. The same day, the FTA notified the CTA that the agency was reviewing the projects.
• Oct. 21, 2025: CTA says it provided more than 1,000 pages of information requested federally.
• Dec. 1, 2025: USDOT requested additional information. CTA notes that it provided the information and certified its compliance on Dec. 10, 2025.

Since that certification, USDOT has not communicated with CTA regarding this matter, nor has the federal agency resumed funding.

Financial impact

The CTA notes that the prolonged pause threatens continued progress on RLE and RPM. If funding is not restored, CTA says it will be forced to stop work on both projects.

While RPM is nearing substantial completion, the agency notes that initial work for RLE 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.