Chicago Transit Authority receives nearly $2 billion from FTA in CIG grant for RLE project

Officials from the Chicago Transit Authority (CTA), the Federal Transit Administration (FTA) and Illinois elected officials gathered to finalize and sign the $1.9 billion full funding grant agreement for the authority’s Red Line Extension (RLE) project.  

The project will extend the CTA’s Red Line 5.5 miles to connect the city’s Far South Side to the ‘L’ system for the first time. This project marks CTA’s largest single transit project in the authority’s history and will address inequalities in access and economic investment in predominantly Black and disadvantaged neighborhoods.  

According to the FTA, about 24 percent of residents in the project corridor live below the poverty level and 25 percent travel over 60 minutes to their jobs—all exceeding city-wide averages. Once the extension opens, it is expected to provide up to 20 minutes in time savings to riders traveling from the future 130th Station.   

“The Biden-Harris Administration is removing barriers to transit through projects like the Red Line Extension—connecting Far South Side Chicagoans to more areas of the city and to the economic opportunity that comes from more accessible travel,” said U.S. Department of Transportation Secretary Pete Buttigieg. “The grant we’re announcing today will finally deliver on this long-awaited project and bring a monumental improvement to how passengers travel by transit, saving some commuters up to 30 minutes in each direction and giving them more time back in their days.” 

The RLE is a transformational South Side project that will improve access to rapid rail transit and provide faster, more convenient service to residents. Extending service will also improve access to jobs, educational and health care institutions and promote economic development. The project is expected to provide a direct connection to jobs, schools, healthcare and commerce, while also catalyzing economic development. As part of the RLE’s contribution to quality-of-life improvements, the 111th St. station will be an anchor for the Roseland Medical District, a health campus a few blocks away. 

“After decades of promises, a profound change for the lives of Chicagoans is finally here,” said FTA Deputy Administrator Veronica Vanterpool. “Beyond providing the Far South Side access to new destinations, this expansion will drive significant economic growth and development, creating opportunities as well as fostering a vibrant local economy for Chicagoans well into the future.” 

CTA estimates the project will generate more than 25,000 jobs in Cook County and bring in $1.7 billion in real estate activity through 2040, along with planned transit-oriented development around the 95th St. Corridor. 

“The Red Line Extension project will undo nearly 60 years of racial inequity in transit,” said CTA President Dorval R. Carter, Jr. “Residents of the Far South Side of Chicago deserve the same access to rapid CTA transit and the numerous quality of life benefits that come with it. I am proud to deliver on the promise I made to the community years ago and deliver access to affordable transportation in the city.” 

Chicago Mayor Brandon Johnson added, “The Red Line Extension Project is transformational for our city, especially for the South Side. This project demonstrates the power of investing in people, and I am thrilled that we are taking a significant step forward in actualizing equitable transportation options for our city. I am grateful to the many partners from all levels of government who championed this effort and made this historic moment possible. Together, we are working to achieve economic vibrancy and stability for all communities, regardless of socioeconomic status.” 

With the full funding grant agreement signed, the RLE will now advance toward groundbreaking, expected by early 2026. The project includes the construction of four new Red Line stations. 

The federal support of $1.97 billion (34.3 percent) for the estimated $5.75 billion project comes from FTA’s Capital Investment Grants (CIG) program. This is the largest transit infrastructure federal grant awarded to CTA in the authority's history and is the final step in securing the funding needed for the $5.7 billion RLE project. 

CTA awarded a contract in August 2024 to Walsh-VINCI Transit Community Partners to design and build the RLE project. The new extension and stations are expected to be completed and in service in 2030. 

RLE project breakdown 

The project will improve transit accessibility by extending the Red Line from the existing terminal at 95th/Dan Ryan to 130th St. The four new fully accessible stations will be located at 103rd St., 111th St., Michigan Avenue and 130th St., where average population density within one-half mile of each station is nearly 6,800 people per square mile.  

Each station will include bus, bike, pedestrian and park-and-ride facilities connections. The RLE will also include new traction power substations, approximately 1,200 parking spaces and a new railyard and maintenance shop near 120th Street.  

Other project benefits for surrounding communities include:  

• An award-winning RLE Transit-Supportive Development (TSD) plan in partnership with Chicago’s Department of Planning and Development (DPD). The plan is a proactive effort to guide the future development of the long-disinvested communities located near the RLE project area, and it reflects the vision of those who currently reside and conduct business in these communities.  
• About 12,512 construction jobs will be created.  
• An estimated 59,800 indirect jobs will be created. 
• An estimated 25,000 additional jobs are anticipated to become available thanks to the increased access to transit for the communities served. 
• The project is providing opportunities for workforce training, apprenticeships and careers with partners Chicago Women in Trades, HIRE 360 and Metropolitan Family Services.  
• CTA is actively supporting participation in the project by disadvantaged business enterprise -certified small businesses through efforts, including the Building Small Business program and partnerships with its construction contractors.