On 29 December 1988 the Department of Defense recommended Chanute's closure as an economic measure to reduce defense spending. The subject of base closure had been considered numerous times during Chanute's proud 75-year history. The end of the Cold War and the reduced threat of future conflicts prompted the government to downsize the military. Chanute was closed on 30 September 1993, ending its reign as USAF's third oldest active base and oldest Technical Training Center.
What has happened to Chanute AFB and Rantoul since the base closed in 1993? Even before the base closed, Rantoul was hard at work on plans to convert CAFB "from swords to plowshares." At the time of base closure, Rantoul was fortunate to have strong leadership in the persons of Mayor Katy B. Podagrosi and the late Major General Frank W. Elliott, Jr., former Chanute Center Commander, and Rantoul's Economic Development Consultant. These leaders, working closely with Ray Boudreaux, the Director of Redevelopment on the base property, were responsible for attracting many large businesses to the base.

Today, two of the largest hangars are leased by Rantoul Products, a division of Textron that makes parts for the Jeep Wrangler and Dodge trucks. The former Officers' Club is a restaurant. The Visiting Officers' Quarters is a motel. Roberts Hall, one of the largest dormitories at Chanute, is now a retirement home run by Amerinvest. In all, over 80% of the base is occupied and over 2,500 people now work on base. Over 75% of base housing is now privately owned homes or rental properties.