Trump Halts Federal Funding for Democrat-Run Chicago Amid Government Shutdown

Washington, Oct 4: The US government shutdown entered its third day on Friday, with no breakthrough between Republican and Democrat lawmakers. Amid the stalemate, the Trump administration announced the suspension of $2.1 billion in federal funding for a rail transit project in Democrat run Chicago.

Russell Vought, Director of the Office of Management and Budget, said on X that the funds were “put on hold to ensure funding is not flowing via race-based contracting.” This move follows a previous freeze of $26 billion for 16 Democratic-leaning states, including $18 billion for transit projects in New York.

White House Press Secretary Karoline Leavitt explained that the suspension specifically affects Chicago’s Red Line Extension and Red and Purple Modernization projects, citing concerns over the Biden administration’s use of taxpayer dollars for DEI-based contracting. She also warned that thousands of federal employees could face layoffs if Democrats continue to block the Republican-led funding bill.

The government shutdown has already furloughed approximately 750,000 federal workers, while many others are working without pay. Essential services such as border security, law enforcement, and air-traffic control remain operational, but programs like food assistance, pre-schools, and national park operations are at risk. The Department of Transportation has paused hiring and training for air traffic controllers, which could impact air travel if the shutdown continues.

Meanwhile, the Smithsonian Institution’s museums and the National Zoo will remain open to the public until October 11. This is the first US government shutdown in seven years and the longest since Trump’s first term, which saw a 35-day shutdown.

The ongoing standoff underscores growing tensions over healthcare funding, with Democrats demanding reversal of cuts in the “Big Beautiful Bill” and Republicans alleging subsidies for illegal immigrants—claims Democrats reject.