AFSCME City of Chicago Update: February 2025

Threat of federal funding cuts causes chaos, confusion

On Jan. 27, the Trump administration issued a memo halting disbursement of all federal funding appropriated by Congress. The public sector was a particular target, with services like Medicaid brought to a screeching halt, payment portals for Head Start and other vital programs shut down, and the jobs of tens of thousands of public workers – including in Chicago – in jeopardy.

Unprecedented and almost certainly unconstitutional, the move cut off more than $1 trillion for state and local governments, universities, infrastructure projects, manufacturing innovations, Head Start, health care, nursing homes, hospitals, nonprofits and more.

The administration claimed its purpose was to ensure compliance with President Trump’s directive to eliminate all measures intended to foster diversity or equity from any federally funded program or contract. But initial reports indicate that federal guidance as to what that might actually mean is confusing and opaque.  

It appears far more likely that this slash and burn initiative is intended to allow the president to unilaterally reduce federal funding for essential services prioritized by the US Congress. The City of Chicago received some $4 billion in federal grants last year, with money allocated for the Red Line expansion, disaster relief, low-income housing assistance, and other programs.  

After the memo was leaked, a coalition of non-profit groups filed a lawsuit claiming that the Trump administration had no legal authority for its action. A federal judge temporarily blocked the cuts, and the administration announced that its badly bungled memo would be rescinded.

While the memo ordering the funding freeze was rescinded and money began to flow again, the administration continued to plow forward with its plans to review and cut funding to programs that center diversity, equity and inclusion, among other things.

Twenty-two states (including Illinois) and the District of Columbia also filed a lawsuit challenging the administration's actions, and a different federal judge issued another temporary restraining order clarifying that his order applied to a funding cutoff, not just to the memo.

However, the threat is far from over, and no one knows what the administration will do next. But we know what AFSCME members must do: Get organized stronger than ever to fight for our jobs, our communities, and the services we provide, the funding needed to support those priorities, and the principles of fairness and equity that the labor movement has always stood for.

Chicago Department of Public Health receives CDC letter demanding end to DEI

On Jan. 29, the Chicago Department of Public Health (CDPH) received a letter from the Centers for Disease Control and Prevention (CDC), demanding an end to all “programs, personnel, activities, or contracts” promoting diversity, equity and inclusion that are supported with funds from CDC grants.

CDPH was just one of several public health departments to receive the letter across the country. None of those cities, Chicago included, has received any communication or clarification from the federal government about how to apply the mandate within the department.

This outrageous threat to withhold funding from critical public health services will not stand. Council 31 is working to identify potential solutions to protect the services AFSCME members provide.

When ICE arrives at worksites...

Over the last two weeks, President Trump began his promised expansion of raids by Immigration and Customs Enforcement (ICE) as his administration seeks to ramp up the deportation of undocumented immigrants. Chicago was one of the first locations targeted in these raids, with dozens of arrests made in the city.

Council 31 is pushing management to ensure that employees are provided a clear response and protocol for how city employees should respond to these raids in the event ICE comes to our workplaces. Further updates will be provided as management publishes more guidance for employees regarding immigration raids.