The CTA is set to formally lock in needed federal money for the extension of the Red Line before President-elect Donald Trump takes office, paving the way for the long-planned addition through Chicago’s Far South Side to move forward.
A large, nearly $2 billion federal grant, key to moving the $5.3 billion project forward, had been promised to the CTA but the formal agreement not yet signed. That put the transit agency under pressure to finalize the agreement before the change in administration and a Republican-controlled Congress could potentially throw the commitment into jeopardy.
But the CTA and the Federal Transit Administration plan to sign the agreement Friday, a little more than a week before Trump is inaugurated, the Chicago transit agency confirmed. Once the agreement is signed, Congress must still regularly approve the money, but CTA spokeswoman Tammy Chase said she considers the agreement final at that point.
“The agreement is a pledge by the federal government to appropriate funding for the Red Line Extension Project and we are confident about the federal government fulfilling its commitment,” she said in an email.
The CTA was in a similar situation when it sought funding for a massive overhaul of the Red Line’s north end. In that case, the agency formalized the agreement in early January 2017, shortly before Trump took office the first time, and subsequently received all of the expected money on time, Chase has said.
This time around, the federal funding will go toward extending the Red Line south by 5.6 miles to 130th Street and adding four stations. The project, discussed for more than 50 years, has the potential to be a major investment in the city’s Far South Side, even as it has meant acquiring dozens of residents’ homes. The CTA has touted the project’s ability to boost equity, save commuting time between the Far South Side and the Loop, improve connections to the neighborhoods and promote economic opportunity and sustainability.
But the costs of the project have ballooned by more than $1 billion in recent years as expenses for materials, labor and financing rose. The grant agreement the CTA expects to sign Friday also came in lower than the agency initially sought. And the agency was required by the federal government to add $400 million to the amount set aside for unexpected costs, bringing the total cost including this contingency to more than $5.7 billion.
The CTA now expects to issue $2.25 billion in bonds to help finance the project. Other funding will come from a special transit tax district approved by Chicago aldermen in 2022 that is expected to raise $950 million and help the CTA meet the required local match for the federal money. The project will also get funding from other state and federal sources.
Members of Illinois’ congressional delegation announced in mid-December the FTA planned to sign the funding agreement with the CTA, but the move Friday marks the formal agreement.
With the federal funding secured, construction on the extension could start in late 2025, and preliminary work has begun. If all goes according to plan, service on the new tracks could begin in 2030, the CTA said.
