"The US government has put $2.1bn in funding for infrastructure projects in Chicago on hold, Russ Vought, the office of management and budget director, said on Friday, in another jab at a Democratic-led city during the federal government shutdown, presented as a move against diversity efforts. Vought said the money for major projects on Chicago's subway mass transit system including extensions of the Red Line route and modernizations have been put on hold to ensure funding is not flowing via race-based contracting."
"On Wednesday, Vought said the Trump administration had frozen $18bn for major transit projects in New York, too, including a rail tunnel under the Hudson River that flows between New York from New Jersey, and an extension of the Second Avenue subway underground rail system, citing the same justification. The outgoing administration of former president Joe Biden finalized a nearly $2bn award of federal funds in its final days to help extend the Red Line 5.5 miles"
"Vought cited a new rule from the US transportation department that took effect on Wednesday to review whether any small-business contractors are engaged in what the White House would regard as improper diversity initiatives. This is one of a series of efforts intended to pressure Democratic lawmakers in the US Congress over the partial government shutdown that began just after midnight on Wednesday. Any substantive delays in federal funding over partisan political squabbles are almost certain to face swift legal challenges."
Federal officials have put $2.1bn in infrastructure funding for Chicago on hold, including Red Line extensions and system modernizations, pending review for race-based contracting. The administration also froze $18bn for major New York transit projects, including the Hudson River rail tunnel and Second Avenue subway extension, citing the same justification. A new US Transportation Department rule requires review of small-business contractors for diversity-related practices. The Biden administration finalized nearly $2bn to extend Chicago's Red Line 5.5 miles in its final days. The funding holds are framed as leverage during a partial federal shutdown and will likely face legal challenges if delays persist.
Read at www.theguardian.com
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