The Chicago Transit Authority (CTA) is suing the U.S. Department of Transportation and the Federal Transit Administration for funds obligated to the agency for construction and modernization projects.
CTA said the agency committed to providing funds for the Red Line Extension (RLE) and Red & Purple Modernization (RPM) projects, including nearly $2 billion in federal grant funding. FTA officials signed the Full Funding Grant agreements for both projects, including one for the RLE on Jan. 10, 2025. In October 2025, the federal government paused all funding for both projects. The CTA is now suing to force the US DOT and the FTA to hand over the funds.
“We are fully committed to the success of these projects, and we will take every step necessary to ensure that they move forward,” CTA Acting President Nora Leerhsen said. “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 federal court in the Northern District of Illinois, the lawsuit outlines the risk to the project created by the funding pause and how the DOT and FTA have not adhered to their own statutory and regulatory requirements regarding the funding suspensions.
CTA said the prolonged pause in funding threatens the progress on RLE and RPM and if the funding is not restored, the transit agency will be forced to stop work on both projects.