“Your Timely Roundup of Local, State, and Federal Updates”
Chamber members:
After last week’s update the question on the federal level became “how will Congress avert a shutdown now?” Speaker Johnson’s funding gamble didn’t pay off after a diverse group of House Republicans torpedoed Johnson’s proposal for a six-month government funding bill.
Now, today we await a vote after an agreement was reached over the weekend. Also, some news for those impacted by the heavy storms back in July and some recent state unemployment reports.
*Government Affairs Roundup brought to you by CITGO*
Congress Reaches Deal to Avert Government Shutdown
Congressional leaders have reached an agreement to prevent a government shutdown just before the critical Sept. 30 deadline. A previous attempt to delay the funding battle until spring 2025, which included a controversial voter identification proposal backed by former President Trump, failed.
The House of Representatives is expected to move forward this week on a continuing resolution (CR) that will temporarily extend government funding. Here’s a breakdown of what’s included—and what’s not.
Key Provisions:
Funding Through December
The deal, unveiled on Sunday, extends government funding until Dec. 20, allowing time for further negotiations on the fiscal 2025 budget. Both Democrats and Republican defense advocates favor this three-month extension.
Previously, conservatives had proposed a six-month extension, which was rejected by the House. Those supporting the longer timeline hoped it would reduce the likelihood of a large end-of-year omnibus spending package and give Trump more influence over fiscal 2025 funding if he regains the presidency. However, House Republicans emphasize that this shorter extension doesn’t imply a commitment to a near-Christmas omnibus bill. Negotiations are expected to resume later in the year.
Secret Service Funding
The deal includes $231 million for the Secret Service, following an apparent second assassination attempt against Trump. Acting Director Ronald Rowe had called for additional resources, citing the need to hire more personnel to ensure security.
Some Republicans have raised concerns about how additional funding would help protect Trump in the lead-up to the 2024 election, especially given the agency’s previous budget increases in recent years.
Items Excluded from the Deal:
SAVE Act
Despite Trump’s insistence that the GOP should push for the Safeguard American Voter Eligibility (SAVE) Act, the bill did not make it into the final package. The SAVE Act would require states to verify proof of citizenship before registering voters in federal elections and purge noncitizens from voter rolls.
Though House Republicans passed the bill earlier this year, they acknowledged it was unlikely to pass in the Democratic-controlled Senate or be signed by President Biden. Critics argue that noncitizen voting in federal elections is already illegal and rare. Additionally, opponents warn the bill could complicate voter registration for eligible citizens.
Submarine Funding
Funding for the Virginia Class Submarine program, originally part of the Republican proposal, was cut from the final deal. The earlier plan allocated $2 billion for the Defense Department’s shipbuilding needs, but after consultations with defense officials and the Biden administration, the funds were dropped.
However, the bill does extend the Department of Defense’s authority to use existing funds for ongoing military construction projects from previous fiscal years.
Veterans Affairs Shortfall
The deal does not address a potential $12 billion shortfall facing the Department of Veterans Affairs (VA) for fiscal 2025. Although Democrats pushed for additional funding, the final version only includes some healthcare provisions for veterans, such as continued authority to provide nursing care to those with service-connected disabilities. The bill also reallocates unused construction funds from fiscal year 2024 for use in 2025.
FEMA Funding
The stopgap measure omits the $10 billion in additional funding for the Federal Emergency Management Agency’s (FEMA) disaster relief fund that was part of the initial six-month proposal. However, it allows FEMA to use its existing disaster relief funds more rapidly during the three-month period.
Congressional aides noted that the current funds are sufficient for the short-term and that further discussions on FEMA’s disaster relief needs will take place in the coming months.
In the end, this agreement buys Congress time to negotiate a long-term budget solution, but significant debates—including over defense, veterans’ needs, and disaster relief—remain unresolved. Lawmakers will likely face another funding showdown as the new December deadline approaches.
SBA Offers Disaster Assistance to Businesses and Residents of Illinois Affected by July Storms
Low-interest disaster loans from the U.S. Small Business Administration (SBA) are available to businesses and residents in Illinois following the announcement of a Presidential disaster declaration for severe storms, tornadoes, straight-line winds and flooding that occurred on July 13-16.
“SBA’s mission-driven team stands ready to help Illinois small businesses and residents impacted by this disaster in every way possible under President Biden’s disaster declaration for certain affected areas,” said SBA Administrator Isabel Casillas Guzman. “We’re committed to providing federal disaster loans swiftly and efficiently, with a customer-centric approach to help businesses and communities recover and rebuild.”
The disaster declaration covers Cook, Fulton, Henry, St. Clair, Washinton, Will and Winnebago counties which are eligible for both Physical and Economic Injury Disaster Loans from the SBA. Small businesses and most private nonprofit organizations in the following adjacent counties are eligible to apply only for SBA Economic Injury Disaster Loans (EIDLs): Boone, Bureau, Clinton, Dekalb, DuPage, Grundy, Jefferson, Kane, Kankakee, Kendell, Knox, Lake, Madison, Marion, Mason, McDonough, McHenry, Mercer, Monroe, Ogle, Peoria, Perry, Randolph, Rock Island, Schuyler, Stark, Stephenson, Tazewell, Warren and Whiteside in Illinois; Lake in Indiana; St. Louis in Missouri; and Green and Rock in Wisconsin.
Disaster survivors should not wait to settle with their insurance company before applying for a disaster loan. If a survivor does not know how much of their loss will be covered by insurance or other sources, SBA can make a low-interest disaster loan for the total loss up to its loan limits, provided the borrower agrees to use insurance proceeds to reduce or repay the loan.
Businesses and private nonprofit organizations of any size may borrow up to $2 million to repair or replace disaster-damaged or destroyed real estate, machinery and equipment, inventory, and other business assets.
For small businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private nonprofit organizations, the SBA offers Economic Injury Disaster Loans (EIDLs) to help meet working capital needs caused by the disaster. Economic Injury Disaster Loan assistance is available regardless of whether the business suffered any physical property damage.
Disaster loans up to $500,000 are available to homeowners to repair or replace disaster-damaged or destroyed real estate. Homeowners and renters are eligible for up to $100,000 to repair or replace disaster-damaged or destroyed personal property.
Interest rates are as low as 4% for businesses, 3.25% for nonprofit organizations, and 2.688% for homeowners and renters, with terms up to 30 years. Interest does not begin to accrue, and monthly payments are not due until 12 months from the date of the initial disbursement. Loan amounts and terms are set by the SBA and are based on each applicant’s financial condition.
Building back smarter and stronger can be an effective recovery tool for future disasters. Applicants may be eligible for a loan amount increase of up to 20% of their physical damages, as verified by the SBA for mitigation purposes. Eligible mitigation improvements may include a safe room or storm shelter, sump pump, French drain or retaining wall to help protect property and occupants from future disasters.
“The opportunity to include measures to help prevent future damage from occurring is a significant benefit of SBA’s disaster loan program, said “Francisco Sánchez, Jr., associate administrator for the Office of Disaster Recovery and Resilience at the Small Business Administration. “I encourage everyone to consult their contractors and emergency management mitigation specialists for ideas and apply for an SBA disaster loan increase for funding.”
With the changes to FEMA’s Sequence of Delivery, survivors are now encouraged to simultaneously apply for FEMA grants and the SBA low-interest disaster loan assistance to fully recover. FEMA grants are intended to cover necessary expenses and serious needs not paid by insurance or other sources.
The SBA disaster loan program is designed for your long-term recovery, to make you whole and get you back to your pre-disaster condition. Do not wait for the decision for a FEMA grant; apply online and receive additional disaster assistance information at sba.gov/disaster.
Applicants may also call the SBA’s Customer Service Center at (800) 659-2955 or send an email to disastercustomerservice@sba.gov for more information on SBA disaster assistance. For people who are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services.
The filing deadline to return applications for physical property damage is Nov. 19, 2024. The deadline to return economic injury applications is June 20, 2025.
**A document is attached to this email for full information.
Illinois Unemployment Second Highest in the Nation as Job Growth Lags
Illinois continues to face economic challenges, with its unemployment rate reaching the second highest in the nation for August. According to the latest figures from the U.S. Bureau of Labor Statistics, Illinois reported a 5.3% unemployment rate, leaving 343,000 residents actively seeking jobs. This rate is significantly higher than the national average of 4.2% and surpasses that of all neighboring states.
While Illinois added 36,300 jobs from August 2023 to August 2024, its job growth rate of 0.59% ranked 44th among all states, far below the national average of 1.51%. Among neighboring states, Illinois ranked seventh for job growth, with Missouri leading the region at 3.32%.
The state saw its most significant job increases in government sectors, with state government adding 10,000 jobs (a 7.01% increase) and local government growing by 24,300 jobs (a 4.12% increase). The “other services” sector also saw a notable rise, gaining 11,200 jobs (a 4.48% increase). However, Illinois only saw modest gains in five of its 11 non-government industries.
Despite gains in some areas, Illinois experienced losses in key industries. The professional and business services sector saw the largest decline, shedding 27,800 jobs over the past year. The information sector also faced a significant downturn, losing 4.77% of its workforce, while the finance sector dropped by 1.34%. Illinois outperformed its neighboring states in only two job categories.
Illinois’ recovery from the pandemic has been sluggish, ranking 46th in the nation for job recovery. Since January 2020, the state has only added 13,500 jobs, representing a meager 0.22% increase. This puts Illinois last among its neighboring states in terms of post-pandemic job growth.
Illinois’ high unemployment and sluggish job growth are compounded by economic policies and high taxes, which continue to be major obstacles to job creation. While the Federal Reserve recently cut its benchmark interest rate by 0.5 percentage points in response to the national unemployment outlook, the core issues driving Illinois’ economic struggles appear to be more tied to state-level policies than national interest rates.
In summary, while Illinois has seen some job growth in recent months, its unemployment rate remains among the highest in the country, and its recovery from the pandemic has been slower than most states. Without significant policy changes, the state is likely to continue lagging behind both the national average and its regional neighbors in economic performance.
OSHA’s Proposed Heat Standard Could Change How Your Business Operates
The Occupational Safety and Health Administration (OSHA) has introduced a new proposed standard titled Heat Injury and Illness Prevention in Outdoor and Indoor Work Settings. This proposal, recently published in the Federal Register, is set to affect businesses across nearly every industry, with potential direct and indirect implications for your workplace. In 2022, OSHA launched a National Heat Emphasis Program (NEP), which led to an increase in workplace inspections and penalties related to heat hazards.
At present, OSHA does not have a specific heat standard. Instead, the agency relies on the General Duty Clause (Section 5-A-1), which mandates that employers provide a workplace free from recognized hazards that can cause death or serious physical harm. OSHA has used this clause to address heat-related illnesses and injuries, but the new proposed rule would go further by setting specific requirements for heat safety.
The proposed heat standard is described as a “Programmatic” standard, meaning employers will be required to create a comprehensive plan for identifying and mitigating heat hazards in the workplace. Depending on heat conditions, businesses would need to implement tiered safety measures to protect their employees. The U.S. Department of Labor has also released a 30-minute video on YouTube titled “Proposed Rule for the Prevention of Heat Illnesses and Injuries,” which outlines the key components of the proposal. Employers are encouraged to watch this video and then provide feedback on how the proposed rule would affect their business.
The proposed heat standard could significantly impact how businesses manage heat-related risks, so it’s essential for employers to understand the details of the rule. By submitting feedback, businesses can help shape a standard that accounts for real-world challenges in managing heat hazards, while still prioritizing worker safety.
OSHA is asking for input from employers before the comment period closes. Once the feedback is reviewed, the agency may revise the proposed rule to better align with the needs of both workers and businesses.
How to Comment on the Proposed Rule
To provide input on the proposed heat standard, employers can submit comments through the official OSHA website at OSHA-2021-0009-4761.
This is a crucial opportunity for businesses to voice their concerns and contribute to the development of a well-informed, balanced regulation that promotes safety without imposing undue burdens on operations. By participating in this process, employers can help ensure that the final rule is both practical and effective.
November 1st Deadline for Newly Covered Employers Under Illinois’ Secure Choice Act
Newly covered employers should have received a notification informing them of the requirement to register with the program and either enroll their employees in the state’s Secure Choice program or demonstrate that they offer their employees an alternative approved retirement plan.
Ascensus, the state’s contracted investment-management provider for the program, is responsible for sending the notifications to the newly covered businesses on behalf of the Secure Choice program.
Under the Secure Choice Act, employers that 1) have been in business for two or more years and that 2) had at least five employees each quarter of the previous year must participate in the Secure Choice program or demonstrate that they independently offer an approved retirement plan to their employees.
For a list of approved retirement plans, click here.
Employers wanting additional information about the Secure Choice program and their requirements under it can utilize the following resources:
- Access the Secure Choice program’s website.
- Attend a webinar hosted by the state’s investment-management provider, Ascensus.
- Listen to a pre-recorded presentation about the Secure Choice program by the state’s investment-management provider, Ascensus.
Recurring Business:
Joliet Junior College Entrepreneur & Business Center presents the “Fall 2024 Intro to Entrepreneurship Class”
Learn the essential skills and steps to owning a small business!
In Person | 4 Part Series
Intro to Small Business Entrepreneurship
October 1st, 8th, 15th & 22nd
Tuesdays 9:00-11:00 AM
Joliet Junior College
City Center Campus
235 N. Chicago St Joliet, IL
This four-session workshop gives entrepreneurs a strong foundation for successful business ownership. Open to the community, the course covers essential topics such as:
- Business Structure
- Business Plan Development
- Marketing Strategies
- Practical Business Finance
- Networking Skills
Stay well,
Mike Paone
Executive Vice President
Joliet Region Chamber of Commerce & Industry
mpaone@jolietchamber.com
815.727.5371 main
815.727.5373 direct