Tarrion Johnson, 19, was arrested shortly after the shooting, Chicago police said.
He was charged with attempted murder, attempted robbery with a firearm, aggravated cruelty to animals and injury to a police animal, officials said.
Chicago police said their officers and U.S. Marshals Great Lakes Regional Fugitive Task Force were serving a CPD arrest warrant for an attempted murder.
When the officers announced themselves, police said Johnson allegedly opened fire on them in the 5200-block of W. Belmont Ave. around 1:23 p.m.
Police said a U.S. Marshal was shot in the hand and his K-9 dog was also struck in his upper body. A Chicago police officer returned fire, but did not strike anyone.
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The K-9 was rushed to MedVet, a 24-hour emergency veterinary hospital, where it received medical treatment.
"All of us are praying for a full recovery, and we want to thank everyone for their prayers and well wishes," said U.S. Marshal LaDon Reynolds.
Two suspects were taken into custody, Chicago police said. An investigation into the incident is ongoing.
The CPD officer who fired shots will be placed on routine administrative duties for at least 30 days, police said. The Civilian Office of Police Accountability will conduct an investigation into the officer's use of force.