Federal Court Unfreezes $3 Billion for Chicago Rail Projects

A judge has temporarily ordered the unfreezing of $3 billion in funding for Chicago rail projects. The city had sued the U.S. Transportation Department, claiming unlawful withholding of reimbursements under awards approved during former President Joe Biden's administration. The funding suspension was labeled as political retaliation.

A U.S. judge has issued a temporary order to unfreeze approximately $3 billion allocated for rail projects in Chicago, according to city officials.

The legal action stemmed from a lawsuit filed by the Chicago Transit Administration against the U.S. Transportation Department and its Federal Transit Administration. The suit alleged that the federal government withheld at least $9.5 million in reimbursements from grants initially approved during the administration of former Democratic President Joe Biden.

The city accused the current administration of an unlawful act of political retaliation, prompting the judicial review that resulted in this latest decision.

(With inputs from agencies.)