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A federal freeze on billions designated for Chicago transportation initiatives was declared on Friday, per Office of Management and Budget Director the official.

Affected Plans

Included in the initiatives affected by the funding freeze involve the extension of the Red Line, which was planned to break ground next year and expand transportation services to underserved communities in the urban area.

Additionally, upgrading projects on a number of rail lines were also put on hold.

Justification for the Halt

The budget director wrote on online platforms that the money was “put on hold to ensure funding is not flowing via race-based contracting.”

The declaration mirrors a similar decision earlier this week involving New York, where the official stated that $18 million for transportation would be halted, including financial support for a planned rail tunnel under the river.

National Closure Background

This action occurs as the federal government closure enters its 72nd hour, with the upper chamber planned to hold a vote later in the day.

In spite of the scheduled vote in the Senate, there is minimal confidence that a agreement is close, as Democrats insist on a series of health-focused compromises.

Wider Consequences

Meanwhile, a rising number of national offices and staff are clearly accusing Democrats for the stoppage.

The government communication by departments may be a violation of the federal law, which prohibits government workers from engaging in electioneering.

Suspended government workers at some offices have been directed to set out-of-office messages stating that they are not working because Democrats triggered a closure.

A progressive wing has chosen to shut down the United States government in the name of reckless spending and obstructionism,” an official government site reads.

Even, advisories over economic impact are not stimulating compromise efforts.

A report by EY Parthenon said that every week the shutdown continues will mean a $7bn hit to the US economy.