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

A fleet of Caltrain electrified trains on tracks
Railby StaffApril 3, 2026

Funding Gap Could Force Caltrain to Slash Service, Close Stations

The Peninsula Corridor Joint Powers Board recently met for a budget workshop, during which staff outlined the significant service reductions Caltrain could be forced to make without new external funding. 

Read More →
SEPTA's Exo railcars
Railby StaffApril 2, 2026

SEPTA Purchases Montreal Coach Cars to Bolster Regional Rail Fleet

Funding for the purchase of the railcars comes from the nearly $220 million in additional capital dollars Gov. Josh Shapiro allocated in November 2025 to support urgent safety upgrades and infrastructure improvements.

Read More →
The South Shore Line with Passengers
Railby StaffApril 1, 2026

South Shore Line Extension Debuts, Boosting Rail Access in Northwest Indiana

The $945 million project connects four new stations and expands regional mobility.

Read More →
Ad Loading...
A rendering of a California High-Speed Rail vehicle
Railby StaffApril 1, 2026

High-Speed Rail May Boost Brain Health, New Study Finds

Research ties rail access to lower depression, better cognition and improved air quality.

Read More →
An MBTA commuter rail at a station.
Railby StaffMarch 31, 2026

Massachusetts Announces Summer Savings for Commuter Rail Riders

With major events and increased travel expected across the state this summer, the Administration is focused on making sure people have a reliable, affordable alternative to driving so we can reduce congestion, support daily commuters, and keep Massachusetts moving.

Read More →
A Sound Transit Crosslake Connection Link light rail vehicle
Railby StaffMarch 30, 2026

Sound Transit Opens Crosslake Connection, Completing Link 2 Line

The final seven-mile segment of the 2 Line includes new stations at Mercer Island and Judkins Park and connects to the 1 Line at the International District/Chinatown Station. The Link light rail system now spans 63 miles and includes 50 stations.

Read More →
Ad Loading...
SEPTA M vehicle on bridge
Railby StaffMarch 30, 2026

SEPTA Set to Begin Major Rehabilitation Project Along M Line

From March 29 through May 9, shuttle buses will replace train service between Bridgeport Station and Norristown Transit Center. Train service will operate as normal between Bridgeport Station and 69th Street Transit Center.

Read More →
Supervisor and LA Metro Board Member Lindsey P. Horvath stands at a podium with a crowd of community members behind her.
Railby Staff and News ReportsMarch 27, 2026

LA Metro Board Advances K Line Northern Extension Through Fairfax and West Hollywood

The project will create the first continuous north-south rail line in the LA basin, connecting major job centers, transit lines, and communities.

Read More →
Nadine S. Lee
Managementby StaffMarch 26, 2026

DART's President/CEO Announces Departure from Agency

Nadine S. Lee, who has served as president/CEO since July 2021, said the decision comes after careful reflection on the agency’s progress and its path forward.

Read More →
Ad Loading...
A Houston automated people mover manufactured by Alstom.
Technologyby Staff and News ReportsMarch 26, 2026

Biz Briefs: Alstom in Houston, DATTCO Makes Acquisition, and More

In this edition of Biz Briefs, we highlight the latest developments shaping the future of mobility — from manufacturers and technology providers to transit agencies and motorcoach service operators.

Read More →