CTA’s RLE Project to receive $396 million increase in federal funding in project’s first year

The Chicago Transit Authority’s (CTA) Red Line Extension (RLE) Project has received a significant funding boost by the federal government, which has pledged to more than double funding for the project in its first year to $764 million from the previous pledge by the Biden-Harris administration of $350 million.

The $396 million increase in first year funding for 2025 underscores the commitment by the Federal Transit Administration (FTA) and the Illinois congressional delegation to the $3.6 billion RLE Extension Project. The RLE Project is the largest transit project in CTA history and one of the biggest equity investments in Chicago history.

“Transit provides important connections for Chicago’s residents, workforce and visitors,” said FTA Acting Administrator Veronica Vanterpool. “This accelerated funding shows our confidence in the Red Line project and the leadership at CTA while redirecting taxpayer dollars spent on borrowing costs, putting those millions back into the transit system.”

“This is a game-changer for the South Side of Chicago,” said Chicago, Ill., Mayor Brandon Johnson. “I want to thank the Biden-Harris Administration and our federal partners for investing in equitable infrastructure to address the longstanding disparities in our public transit system. With this significant boost in funding, we are not just laying new tracks – we are laying the foundation for economic growth, job creation and improved quality of life for thousands of Chicagoans.”  

The CTA’s RLE project, which will extend the Red Line 5.6 miles to the Far South Side of Chicago, is one of three projects in the U.S. that is being proposed in the 2025 federal grant pipeline, which were recommended in prior budgets but have not yet entered into a construction grant agreement.

The agency was notified in 2023 that it was in line for almost $2 billion in critical grant funding needed to build the project. CTA then began the Engineering phase of the project, which includes further design and engineering needed to build the project and identifies the federal grant dollars CTA can receive for the project once the engineering phase is completed and approved by FTA. The Engineering phase of the project is expected to continue this year and CTA anticipates a Full Funding Grant Agreement (FFGA) by the end of 2024, subject to federal review and approvals.

“We greatly appreciate the steadfast support of the federal government to moving CTA closer to breaking ground for the Red Line Extension, a once-in-a-lifetime project for Chicago,” said CTA President Dorval R. Carter, Jr. “I thank the Biden-Harris administration, the Federal Transit Administration and the Illinois congressional delegation for their unwavering commitment to invest in new rail service on the Far South Side, which has been promised equitable transit access for decades. We look forward to continuing our critical work with all our federal partners in the coming years.

All funding sources for the $3.6 billion RLE project have been identified and include:

• $1.97 billion: Federal “New Starts”, which includes the $350 million recommended in the Fiscal Year 2025 budget request
• $950 million: Local Transit TIF
• $130 million: Congestion Mitigation and Air Quality Improvement (CMAQ)/Carbon Reduction Program
• $281 million: State funding (anticipated)
• Remaining funding (~$266 million): CTA bond funds and other sources

RLE Project overview

The RLE project is a community-input driven investment in Chicago’s Far South Side that will:

• Build a 5.6-mile extension of the Red Line starting at 95th St. Terminal to the vicinity of 130th St.
• Include four new accessible stations near 103rd St., 111th St., Michigan Avenue and 130th St., each of which would include bus, bike, pedestrian and parking facilities.
• Build a new rail yard and related rail facilities to improve operational efficiency for the entire Red Line and CTA system.
• Provide long-awaited and much needed connection to jobs, education and commerce while also serving as a catalyst for economic development.

CTA notes the RLE Project will provide a new, more direct connection to downtown via the Red Line. Once the extension opens, it is expected to provide up to 30 minutes in time savings for riders traveling to downtown from the future 130th station.

Other project benefits for surrounding communities include:

• An award-winning RLE Transit-Supportive Development Plan in partnership with Chicago’s Department of Planning and Development. The plan is a proactive effort to guide the future development of the long-disinvested communities located near the RLE project area and reflects the vision of those who currently reside and conduct business in those communities.
• Creation of more than 25,000 jobs to Cook County in future years.
• Opportunities for workforce training and jobs and participation in the project by small Disadvantaged Business Enterprise-certified small businesses.