Government Affairs Roundup
“Your Timely Roundup of Local, State, and Federal Updates”
Chamber members:
Illinois legislators convened in Springfield on Tuesday to kick off the second year of the 103rd General Assembly. Building on the momentum of numerous bills signed into law by Governor Pritzker in the previous year, over 7,000 bills await potential action by lawmakers until May.
The initial pace of the four-month spring session is expected to be gradual, mirroring the fall veto session. Committee hearings are likely to be the focal point of activity during the two remaining days of this month, with floor action in both chambers primarily centered around resolutions.
The State of the State address in February by the governor, highlighting budget priorities and administration achievements, traditionally marks the turning point for increased legislative activity. However, the upcoming election season will significantly influence the overall assertiveness of the lawmaking process.
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Lawmakers Return to Springfield
Traditionally, legislators undertake the majority of significant tasks during the initial year of a two-year assembly. Due to the primary structure, elected officials exercise caution to avoid actions that could lead to challenges in the primary elections.
Although the spotlight is often on the presidential election in November, voters will be key in determining representation in the state Senate and House of Representatives. Presently, Democrats hold commanding majorities in both chambers and are anticipated to maintain or potentially increase those margins in the upcoming November elections. All 118 seats in the House and 23 seats in the Senate are open for election.
Holdovers from 2023
In the coming months, many of the General Assembly’s legislative priorities will be unveiled, but there are specific expectations left on the mind. The veto session concluded in November, addressing issues such as the state’s nuclear moratorium, yet leaving several matters unresolved.
Key among the unresolved matters, lawmakers did not renew Invest in Kids, a program offering income tax credits for supporting private K-12 school scholarships, and a bill allowing the unionization of legislative staff. Both legislators and advocates have expressed interest in reopening discussions on these issues.
Another noteworthy topic left without action in the fall was supplemental migrant funding, as thousands of migrants were transported from Texas to the Chicago area. Legislative leaders, House Speaker Emanuel “Chris” Welch and Senate President Don Harmon are currently exploring options to address this matter.
To assist in settling and sheltering migrants in Chicago, the state allocated an additional $160 million from the Illinois Department of Human Services budget this fall. This is part of the $638 million spent on the asylum crisis since August 2022, according to the governor’s budgeting agency.
Governor Pritzker, concerned about the impact of frigid temperatures, sent a letter to Texas Gov. Greg Abbott on Friday, urging him to at least pause the transport of migrants to the city. City data indicates that nearly 35,000 asylum seekers arrived in Chicago by bus from Texas since August 2022.
Pritzker highlighted the importance of addressing the costs associated with the migrant issue in a recent unrelated press conference, acknowledging discussions with leaders who have been hesitant to address the matter.
The state has already directed $640 million toward the migrant issue, including the $160 million announced by Pritzker in November. The hope is that the legislature will address the budgetary gap in the Illinois Department of Human Services with funds from an estimated $1.4 billion revenue increase expected during the budget year.
As the legislature works on a new spending plan for the year beginning July 1, the migrant issue is anticipated to complicate budget talks. House Republican Leader Tony McCombie questioned the appropriation of funds for the migrant crisis, particularly when veterans and other long-term residents also face housing issues.
Among Democrats, there is some reluctance to provide further funding for the migrant crisis without simultaneously addressing long-standing issues of poverty and homelessness in Illinois, as expressed by Senate President Don Harmon. He emphasized the need to address multiple crises that have existed in communities for generations.
Discussions about additional funding for migrants may be integrated into the larger negotiations over next year’s state budget, according to Harmon. Despite calls for federal funding from Governor Pritzker and other officials, there is no definitive answer, and the matter will be part of the ongoing budget process, as stated by House Speaker Emanuel “Chris” Welch.
New Bills
Recently introduced bills encompass a range of issues, with one proposing a right-to-repair for farmers, empowering them to mend their agricultural equipment. Another bill aims to ban the sale of products containing PFAs or “forever chemicals” from next year onwards. Both bills are currently under consideration after being referred to assignments last week.
House Bill 4198, spearheaded by State Rep. Carol Ammons, D-Urbana, is focused on enhancing voting accessibility. The bill proposes allowing local election authorities to mail ballots to all registered voters in their area. This option, increasingly utilized since COVID-19, contrasts with the current state law that requires voters to request a mail-in ballot. Notably, eight states and Washington D.C. already offer a vote-by-mail program.
Several other notable bills cover diverse topics, including health care funding, prescription drugs, procurement practices, plastic bag usage, research and development credits, freedom to work, workplace privacy, commercial data protection, employee sick leave, and consumer fraud.
The self-imposed adjournment date for the spring session is May 24, but lawmakers have established a contingent schedule, allowing for additional days if necessary.
Economic Outlook
As the state enters budget negotiations, there is an optimistic outlook for the current year’s economy. According to the latest update from the bipartisan Commission on Government Forecasting and Accountability, state revenues have increased by approximately 3%, exceeding $700 million in the first half of the budget year. This positive trend could help alleviate fiscal pressure. Despite facing increased costs totaling nearly $1 billion, the governor’s office anticipates ending the budget year on June 30 with a surplus of $422 million.
Illinois received its ninth credit rating upgrade within a two-year period, allowing the state to borrow money at a lower interest rate, potentially resulting in significant savings. However, if the migrant crisis persists through the summer, the state may encounter a more challenging situation in funding the relief effort. The governor’s office projected a shortfall of nearly $900 million for the budget year starting July 1, primarily due to rising pension contributions and other costs outpacing projected revenue. Closing this gap may require a combination of spending cuts or tax increases.
Senate Republican leader John Curran, representing Downers Grove, emphasized that GOP support for the budget hinges on increased transparency in the governor’s spending decisions. This includes areas such as the migrant crisis and a health care program for non-U.S. citizens in Illinois. Curran expressed the intention to collaborate with Senate Democrats, building upon the positive process from the previous year and aiming for further progress.
New childhood agency proposed
Governor Pritzker has included in his legislative agenda the establishment of a new early childhood agency, aiming to streamline the consolidation of functions currently dispersed across three separate entities, including the Illinois Department of Children and Family Services (DCFS). This proposed agency would unite responsibilities such as early intervention for children with disabilities and developmental delays (Department of Human Services), oversight of preschool programs (Illinois State Board of Education), and daycare licensing (DCFS).
The creation of this agency, subject to legislative approval, seeks to reduce bureaucracy for families seeking services for their children and the external agencies providing them, according to the Pritzker administration. The concept of reassigning daycare licensing to a different agency has long been discussed by lawmakers and advocates, allowing DCFS to concentrate on its primary responsibilities in child welfare, such as abuse and neglect investigations.
Criticism of DCFS under Pritzker’s leadership has prompted the appointment of Heidi Mueller, a seasoned professional from the state’s juvenile justice system, as the new director. This appointment awaits approval by the state Senate, with calls for broader systematic reforms to enhance the protection of vulnerable children.
Bears Stadium
Another unresolved matter from the previous year involves financial incentives for a new Chicago Bears stadium. Despite bills on this issue making no progress, the Bears are still exploring options with various Chicago-area municipalities. The anticipated location was land purchased by the team in northwest suburban Arlington Heights, but team CEO Kevin Warren recently raised the possibility of remaining in Chicago.
Governor Pritzker has made it clear that he opposes the use of taxpayer money for a new Bears stadium. House Speaker Emanuel “Chris” Welch has not been informed of any legislative action related to the team as the new year begins, emphasizing a lack of discussions or proposed legislation for 2024.
Governor Pritzker Announces $14.9M in Federal Funding for Illinois’ Community Charging Program
Governor JB Pritzker announced that Illinois secured 14.9M in competitive federal grant funding from the US Department of Transportation’s FY22-FY23 Charging and Fueling Infrastructure (CFI) Discretionary Grant Program. The Illinois Finance Authority (IFA), in its role as the Illinois Climate Bank, was chosen to receive the $14.9M to support the expansion of electric vehicle (EV) charging infrastructure in Illinois.
“As Illinois moves toward a clean energy future, it is imperative that no communities are left behind,” said Governor JB Pritzker. “This investment from our partners at the federal level will ensure Illinois has the resources to make electric vehicles accessible to all our residents. With the incredible work from the Illinois Finance Authority, regional partners, and local leadership, I have no doubt the Community Charging Program will make a positive impact statewide.”
The proposed project, “The State of Illinois Community Charging Program,” aims to advance community-based transportation efforts across Illinois and prioritize equity in the clean energy movement. The statewide initiative is a joint effort between the Illinois Climate Bank as well as local and regional partners, serving 273 project sites (144 of which are located in or in close proximity to disadvantaged communities). The funds will support construction of 845 Level 2 EV Charging stations, and 36 DC Fast Charge stations.
Of the total $18.7M project investment,
- 43% will be allocated for disadvantaged community projects.
- 63% will be designated to dense urban communities with a high percentage of multi-family housing, as well as rural communities and small towns.
The new funding for EV charging infrastructure bolsters the State of Illinois’ previous efforts towards a clean energy future. Considerable progress under the Pritzker Administration includes the 2021 signing of the Climate & Equitable Jobs Act (CEJA), which places the state on a path to 100% clean energy by 2045 and 1 million electric vehicles on the roads by 2030.
Additionally, in the past year alone, the Pritzker Administration launched $10M in funding for the Climate Works Pre-Apprenticeship Program, allocated $6M for the Energy Transition Barrier Reduction Program, and partnered with numerous EV manufacturers to open Illinois factory sites and ensure career pathways in EV production.
“Governor Pritzker’s nation-leading CEJA legislation was the competitive advantage for this CFI award,” said Chris Meister, Executive Director of Illinois Finance Authority/Climate Bank. “CEJA prioritizes (1) measurable progress on climate; (2) authentic community voices through Justice40; and (3) partnerships across regions and organizations. In awarding CFI to Illinois, the United States Department of Transportation has demonstrated that the federal government is aligned with Illinois goals under CEJA.”
“By expanding access to electric vehicle chargers, we are weaving a network that connects urban and rural areas alike, ensuring that every community, regardless of its geographical or socioeconomic standing, has the tools to embrace the electric vehicle revolution,” said U.S. Senator Dick Durbin (D-IL). “This investment is a key step in breaking down barriers to entry for disadvantaged communities, offering them a ticket to the future of transportation.”
“Expanding access to reliable charging stations for electric vehicles that help lower fuel costs and reduce emissions across our state is a crucial infrastructure investment,” said U.S. Senator Tammy Duckworth (D-IL). “I’m glad that this funding will prioritize equity by helping make EV charging sites more accessible to all Illinoisans—no matter if they live in an urban area or a rural community.”
“I’m proud that Illinois will receive this substantial award to help our state build out electric vehicle charging infrastructure in urban and rural areas,” said U.S. Representative Bill Foster (D-IL). “As more electric vehicles hit the roads, it’s vital that we have an efficient charging infrastructure to support them. Illinois continues to lead the way in the clean energy economy that will benefit our entire state.”
“The Bipartisan Infrastructure Law is making it easier than ever for more families to own and drive electric vehicles,” said U.S. Representative Lauren Underwood (D-IL). “These investments are critical to our fight against climate change, and for creating better public health outcomes for our communities, and I am so proud of our work to bring this federal funding home.”
Congressional leaders reach deal to avert government shutdown
Congressional leaders have brokered a deal to avoid a government shutdown, opting for a two-step stopgap bill to extend funding into March, as per three reliable sources. The new deadlines for government funding are proposed for March 1 and March 7, preempting the imminent shutdown deadlines on Friday and Feb. 2.
Senate Majority Leader Chuck Schumer’s spokesperson stated that the Senate will post the resolution’s text, with GOP leadership holding a conference call on Sunday night to discuss the plan aimed at preventing a government shutdown. The agreement provides the House and Senate with additional time to finalize the 12 appropriations bills, building on the prior deal on overall spending figures announced by congressional leaders.
The two-step continuing resolution, however, may face resistance from conservative House Republicans, known for opposing stopgap measures and hesitant about bipartisan agreements. This approach, reminiscent of the November shutdown standoff, was previously favored by House conservatives to avoid a comprehensive omnibus funding bill, a strategy they typically disapprove of.
Complicating matters, hard-line Republicans are insisting on incorporating border security into the funding effort, adding a contentious element to the already complex shutdown scenario. Securing significant Democratic support will likely be crucial for the deal to pass the House.
The decision to pursue another two-step continuing resolution marks a shift for Speaker Mike Johnson, who initially opposed further stopgap bills in November but is now considering this option to navigate the current situation. House Republicans had explored different stopgap bill options this week, including a long-term continuing resolution with a 1 percent across-the-board cut triggered by a debt limit deal. However, the preference appears to lean towards a continuing resolution extending into February or March to allow more time for finalizing spending bills.
This agreement follows the recent announcement of top-line spending numbers, with a set spending cap of $1.59 trillion and additional tweaks amounting to approximately $69 billion. While some conservative House Republicans criticized the deal, Speaker Johnson affirmed its continuation, highlighting certain adjustments to the agreement. Despite Johnson’s commitment, House Freedom Caucus Chairman Bob Good suggested that alternatives were still under consideration.
House, Senate tax chiefs announce deal on business deductions, low-income credits
On Tuesday morning, leading tax legislators in Congress revealed a bipartisan deal to enhance the child tax credit (CTC) and reinstate business deductions that were previously removed to fund the reduction of the corporate tax rate in the 2017 Tax Cuts and Jobs Act.
The CTC expansion aims to raise the maximum credit per child to $2,000 from $1,600 until 2025. Simultaneously, it restores business deductions for research and development costs, interest payments, and capital investments.
Additionally, the deal includes provisions to increase the low-income housing tax credit and offers a carve-out for Taiwanese companies. This comes as part of the U.S. initiative to reshore segments of the high-end semiconductor industry, a significant portion of which is based in Taiwan.
To cover the $80 billion deal, tax writers propose eliminating the employment retention tax credit, citing aggressive marketing within the tax industry and fraudulent business activity.
House Ways and Means Committee Chair Jason Smith (R-Mo.) stated, “American families will benefit from this bipartisan agreement that provides greater tax relief, strengthens Main Street businesses, boosts our competitiveness with China, and creates jobs.”
Senate Finance Committee Chair Ron Wyden (D-Ore.) believes the proposal could assist around 15 million children close to the poverty line and increase the stock of low-income housing nationwide. He emphasized that improvements to the Low-Income Housing Tax Credit could result in over 200,000 new affordable housing units.
While the final legislative vehicle for the tax deal and its enactment before the tax season starts on Jan. 29 remain uncertain, some senators express enthusiasm. Sen. Maggie Hassan (D-N.H.) stated her strong support for incentivizing American R&D, emphasizing bipartisan backing in both the Senate and the House.
Policy experts welcomed news of the deal, noting its potential positive impact on child poverty. The Center on Budget and Policy Priorities, a left-leaning nonprofit, highlighted that the proposal, when fully implemented in 2025, could lift over half a million children above the poverty line and reduce poverty for approximately 5 million more children. The analysis suggests that more than 80 percent of the 19 million children receiving partial or no credit due to low family incomes would benefit from the proposal.
Building Blocks of Success: IDOT announces January dates for Disadvantaged Business Enterprise program workshops
The Illinois Department of Transportation is hosting free virtual workshops in January as part of its continuing Building Blocks of Success series for Disadvantaged Business Enterprise firms interested in strengthening their skills, growing their business and bidding on state projects. New and existing DBEs, as well as firms interested in becoming certified in the program, are invited.
January workshop dates and topics:
- Jan. 18, 10 a.m. to noon: Capital and Lending Series – What Banks Look For/How to
- Connect with Lenders
- Jan. 23, 10 a.m. to noon: Bonding and Insurance – Advanced Insurance and Bonding (Underwriting)
- Jan. 25, 10 a.m. to noon: Bonding and Insurance – Insurance, Bonding and Risk Management for Construction Firms
- Jan. 30, 10 a.m. to noon: Marketing and Networking Series – Business and Strategic Plans Q&A
Building Blocks of Success will continue through April. Workshop information, including dates and times, is available through Eventbrite at bit.ly/DBEworkshops. Advance registration is required.
Questions can be directed to IDOT’s Bureau of Small Business Enterprises at (217) 785-4611.
Through Gov. JB Pritzker’s historic, bipartisan Rebuild Illinois, IDOT is helping to deliver the largest capital program in state history while promoting diversity, equity and inclusion.
Administered by IDOT, the DBE program provides minorities, women and eligible small businesses with opportunities to participate in federally and state funded highway, transit and airport contracts. For more information on becoming a certified DBE and learning more about available IDOT resources, visit www.idot.illinois.gov/dbe.
Stay well,
Mike Paone
Executive Vice President
Joliet Region Chamber of Commerce & Industry
mpaone@jolietchamber.com
815.727.5371 main
815.727.5373 direct