Transportation department's changes to federal diversity program risks hurting Chicago's small businesses
By Amy Yee
Published on March 21, 2026.
The U.S. Department of Transportation (DOT) has changed its policy regarding the Disadvantaged Business Enterprise program, which allows businesses under this program to be recertified without using race or gender as a factor. This comes amid efforts by President Donald Trump's administration to end diversity initiatives. The DOT has called the Chicago Transit Authority's diversity programs "discriminatory" and is reviewing the $5.7 billion Red Line Extension and Red and Purple Modernization projects to determine if any unconstitutional practices are occurring. It also froze the remaining federal funding for both projects, totaling $2.1 billion. The new policy has caused significant uncertainty for infrastructure projects and construction service firms.
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