Stakeholders still have to agree on two major facets: a funding source and governance changes. While there is more agreement among stakeholders on reforms than funding, it’s unlikely lawmakers will move one without the other.

The move, condemned by Illinois officials, appeared to be part of the Trump administration’s aim of using the government shutdown as leverage.

By Andy Sullivan, David Shepardson and Nandita Bose WASHINGTON (Reuters) -U.S. President Donald Trump's administration froze $2.1 billion in Chicago transit funding on Friday, starving another Democratic city of funds as the government shutdown entered its third day.

White House budget director Russ Vought says the Trump administration will withhold $2.1 billion for Chicago infrastructure projects, expanding funding fights that have targeted Democratic areas during the government shutdown.

The administration plans to revoke federal funding over what it calls “discriminatory, illegal, and wasteful contracting practices.”

Chicago-area public transit agencies are facing a fiscal cliff. The budget gap for CTA, Metra and Pace is at $200 million, according to the Regional Transportation Authority.

Riders and workers warn of economic catastrophe as CTA officials outline a potential $1 billion shortfall, with solutions hinging on state action.

The $570 million reduction from previous estimates provides only temporary relief. The fiscal cliff jumps to $789 million in 2027.

The U.S. Department of Transportation (DOT) announced Friday it's halting billions in federal funding for Chicago, including a project to bring more accessible public transit to predominantly Black neighborhoods.

Significant service cuts are still expected on the CTA beginning in the middle of next year if state lawmakers don’t green-light additional funding.

The U.S. government has put $2.1 billion in Chicago infrastructure projects on hold, Office of Management and Budget Director Russ Vought said on Friday, in another jab at a Democratic-led city during the government shutdown.

Greg Bishop shares Chicago Mayor Brandon Johnson's reaction to the Trump administration putting on hold $2.1 billion in federal tax funds from the Chicago Transit Authority projects where there is race- and sex-based contracting preferences.