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The national pause on billions earmarked for Chicago transit initiatives was declared on the weekend, per OMB Director the official.

Impacted Projects

Among the initiatives impacted by the budget pause include the public transit expansion, which was planned to begin construction in 2026 and improve mass transit to underprivileged areas in the urban area.

Additionally, upgrading efforts on a variety of rail lines were also frozen.

Justification for the Pause

The official declared on online platforms that the funds was “put on hold to ensure funding is not flowing via race-based contracting.”

The declaration comes after a comparable action recently involving New York, where the director announced that $18 million for infrastructure would be paused, including financial support for a new rail tunnel under the Hudson.

National Shutdown Context

The move happens as the national stoppage reaches its third consecutive day, with the Senate planned to take a vote later in the day.

Regardless of the anticipated Senate vote, there is little hope that a deal is close, as the Democratic party hold out for a set of medical compromises.

Wider Consequences

Additionally, a rising number of federal agencies and staff are directly accusing opposition leaders for the closure.

This government communication by departments is potentially a breach of the Hatch Act, which bans public servants from participating in partisan political activity.

Suspended public servants at some offices have been told to set email responses explaining that they are not working because opposition lawmakers triggered a stoppage.

A far left has chosen to shut down the United States government in the name of reckless spending and obstructionism,” the treasury department’s website reads.

Even, advisories over economic impact seem not to be encouraging compromise efforts.

An analysis by an economic analyst indicated that every seven-day period the shutdown lasts will mean a $7 billion impact to the national economy.