CHICAGO — Illinois taxpayers will cover a $1.3 million payout to GardaWorld Federal Services for work performed on a controversial migrant shelter project in Brighton Park that was ultimately never completed, according to records included in the state’s new 2025 budget.
The encampment, which had been fast-tracked as a winter housing solution for Chicago’s growing migrant population, was halted in late 2023 after testing revealed contaminated soil at the site near 38th Street and California Avenue.
Despite early assurances from state officials that Illinois would not absorb the cost, the payment was quietly authorized under a two-line budget item in the $55 billion spending plan approved in June 2025.
Construction Began — Then Environmental Concerns Stopped It
The Brighton Park site was intended to host heated, soft-sided tents for up to 2,000 migrants and asylum seekers. But midway through site prep, environmental tests uncovered industrial pollutants, prompting Governor J.B. Pritzker to cancel the contract.
At the time, Pritzker’s office said no taxpayer funds would be used — but according to budget documents, GardaWorld was still compensated for its partial work under a negotiated agreement through the Illinois Court of Claims.
“This is exactly why people lose trust in government — the lack of transparency,” said House GOP Leader Tony McCombie, after news of the settlement surfaced.
Community Leaders Say Residents Deserve Advance Notice
Ald. Julia Ramirez, who represents the Brighton Park area, previously criticized how the shelter plan was rolled out, arguing that community input was bypassed.
She has yet to comment on the finalized payout, but her office had called for more accountability and environmental reviews when the project was first proposed.
GardaWorld Settlement Sparks Backlash Over Budget Transparency
The contractor, GardaWorld, is the same firm that built multiple shelters under emergency contracts in Chicago. In this case, officials say the $1.3 million covered site work, labor, and mobilization before the project was halted.
Opposition lawmakers allege the payment was “slipped into the budget at the last minute,” and that neither the public nor most legislators were informed before the vote.
“This was a failed site, an abandoned shelter, and a broken promise,” said one Republican lawmaker.
What’s Next For Migrant Shelter Planning In Chicago
Following the Brighton Park fallout, the city has shifted away from tent shelters and toward indoor housing solutions, including converting closed storefronts and underused public buildings.
Plans are now underway to reopen a former CVS in Little Village as one such shelter location, while city and state leaders pledge better transparency and environmental vetting moving forward.
Do You Think Taxpayers Should Cover Costs Of Failed Projects?
Should the state be responsible for a $1.3 million payout on an abandoned project — or should stricter budget oversight prevent this? Tell us what you think now on ChicagoSuburbanFamily.com.
