Trump Freezes $2.1 Billion Chicago Transit Funds as Shutdown Deepens

U.S. President Donald Trump’s administration on Friday froze $2.1 billion in funding for Chicago’s transit system, intensifying pressure on Democrats as a government shutdown entered its third day. The move, part of a broader freeze of at least $28 billion targeting Democratic-run cities and states, has cut off funds earmarked for elevated train lines. Budget Director Russ Vought said the halt was to ensure money was not “flowing via race-based contracting,” while Illinois Governor JB Pritzker denounced the freeze as “hostage-taking” that would harm working people relying on public transit.

The Senate rejected both Republican and Democratic funding proposals in a 54-44 vote, falling short of the 60 votes needed to end the standoff. With the House out next week and the Senate adjourned until Monday, the impasse shows no sign of resolution, leaving about $1.7 trillion in agency operations frozen. Trump, who has also threatened to withhold funds from Portland and slash federal jobs, has drawn criticism from Democrats and some Republicans for creating a “bad-faith environment” that complicates negotiations.

The shutdown, the 15th since 1981, has already suspended scientific research, financial regulation, and pay for nearly 2 million federal workers, while “essential” staff such as troops and airport security must still report for duty. If unresolved past Monday, it will become the fourth-longest shutdown in U.S. history. Economists warn that extended disruptions could hit air travel, food aid programs, and even federal courts, while delaying critical economic data releases like the unemployment report, adding further uncertainty to the world’s largest economy.

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