Government Affairs Roundup
“Your Timely Roundup of Local, State, and Federal Updates”
Chamber members:
The Illinois 104th General Assembly was inaugurated last week. For the Senate, the swearing-in ceremony took place in the newly reopened Senate chambers. For the House, the ceremony was conducted at the University of Illinois, Springfield Performing Arts Center.
Senate President Don Harmon will remain in his post. Senator John Curran will remain the Senate Republican Leader. In the House, Speaker Chris Welch was elected to another term and Representative Tony McCombie will once again serve as the House Republican Leader.
There are 78 House Democrats and 40 House Republicans. In the Senate, there are 40 Democrats and 19 Republicans. The General Assembly is scheduled to be in regular session until May 31. The Senate calendar has 48 days and the House has 51 on the calendar. There is always the clause of “subject to change” to note.
Our first luncheon of the new year will take place on Wednesday, January 22nd at the Holiday Inn. Join us to hear Doug Pryor, President/CEO of the Will County Center for Economic Development talk about “Insights & Perspectives on Housing in Will County.” A much-needed discussion on a topic mentioned here in this space from time to time.
Here is the link to register: https://members.jolietchamber.com/events/details/2025-member-lunch-january-22-housing-in-will-county-insights-and-perspectives-7242
*Government Affairs Roundup brought to you by CITGO*
Illinois House Establishes Pension Panel Amid Growing Budget Shortfalls
Illinois House Speaker Chris Welch has announced a new initiative to address the state’s underfunded pensions with a sharper focus on budgetary considerations. This move comes as the legislature grapples with a projected $3 billion deficit for the upcoming fiscal year.
On Thursday, the House passed rules that include the creation of a standing appropriations committee specifically for pensions and personnel. Welch, who has led the Illinois House of Representatives for four years, emphasized the importance of examining pension contributions through a budgetary lens. This new panel will operate separately from the existing committee that focuses on broader pension policy.
The financial strain of Illinois’ pension system is significant. Contributions to the state’s five underfunded pension systems—which aim for 90% funding by 2045—consume approximately 20% of the state’s annual budget. Despite these efforts, the long-term unfunded liability remains at an alarming $144 billion.
Welch underlined the urgency of the issue, stating, “With regards to the appropriations committee—because, again, everything goes through the budget—we want to have specific hearings and conversations around dollars. We want to be very attentive to these issues. We want to hear from stakeholders and get this right. That’s very important to me.”
The establishment of the new committee coincides with what Welch predicts will be “one of the more difficult budgets” in recent years. The anticipated fiscal challenges stem from the expiration of federal pandemic aid and the unpredictable financial landscape ahead. Initial estimates from the state’s budget office project a $3 billion deficit for the fiscal year beginning July 1.
Governor JB Pritzker has also raised concerns about potential budgetary impacts from broader economic uncertainties. Addressing the pension system is likely to play a pivotal role in navigating these challenges.
Illinois lawmakers and Pritzker’s administration are expected to explore a range of pension-related issues this year. Among these is the evaluation of Tier 2 pension benefits, introduced in 2011 to curb escalating costs. Questions remain about whether these benefits meet federal thresholds, and potential fixes are under review.
Additionally, Pritzker has proposed extending the state’s pension funding timeline to 2048, aiming for full funding rather than the current 90% target by 2045. Illinois’ pensions are currently only 46% funded relative to their long-term liabilities. While Welch supported Pritzker’s proposal last year, state leaders opted to postpone its implementation, agreeing instead to evaluate it as part of a broader fiscal strategy.
As Illinois confronts its budgetary challenges, the new appropriations committee represents a step toward addressing one of the state’s most pressing financial burdens. With heightened attention on stakeholder input and fiscal accountability, the legislature seeks to strike a balance between immediate budgetary needs and long-term pension stability.
Addressing Homelessness in Illinois / Affordable Housing
As homelessness rises across Illinois, the Illinois Shelter Alliance, a coalition of shelter providers and advocates, is calling for an additional $100 million in state funding to tackle the issue. This request, which would add to the $290 million already allocated for homelessness services this year, aims to prevent homelessness and expand shelter capacity statewide.
The Alliance highlighted the lessons learned during the COVID-19 pandemic, particularly in creating shelters that better address the needs of people experiencing homelessness. In December, the Illinois Shelter Alliance sent a letter to Governor JB Pritzker urging him to prioritize the funding increase in his upcoming budget proposal. However, the request comes at a challenging time, with the state facing a $3.2 billion budget shortfall for the fiscal year beginning in July.
“At every General Assembly, we receive many letters from advocates asking for funding increases,” Pritzker said during a press conference. “In a challenging budget environment, meeting all these demands is difficult.”
The number of people experiencing homelessness in Illinois more than doubled between 2023 and 2024, according to recent federal data. Much of the increase stems from an influx of migrants, many of whom arrived in Chicago on buses chartered by Texas state agencies. However, the U.S. Department of Housing and Urban Development also reported rising homelessness throughout the state, citing a lack of affordable housing, increased shelter capacity, extreme cold weather during the survey period, and rising living costs following the end of federal pandemic aid.
Advocates emphasize that a lack of affordable housing is a primary barrier to addressing homelessness. Many shelter providers report that without affordable housing options, individuals remain stuck in shelters, limiting capacity for others in need, Governor Pritzker has taken steps to address this issue, including creating a new administrative position to increase affordable housing supply and reviving the SmartBuy program, which provides financial assistance for student loan relief and affordable mortgages. His administration has also increased funding for Home Illinois, a statewide initiative aimed at ending homelessness, which received a $90 million boost for the fiscal year 2024.
“Governor Pritzker strongly believes growing the state’s economy requires lower housing costs and increasing supply in every community,” his spokesperson Alex Gough said in a statement.
Before the pandemic, permanent homeless shelters in Illinois were mostly concentrated in major cities like Chicago, Rockford, and Aurora. Temporary shelters, often hosted by churches and temples, were the primary option in other areas. The pandemic, however, necessitated a shift toward non-congregate shelter models to reduce the spread of the virus.
Organizations like South Suburban PADS used federal pandemic relief funds to purchase properties and create non-congregate housing. This approach significantly improved mental and physical health outcomes, safety, and access to resources for individuals experiencing homelessness.
When federal funding began to wane, the Pritzker administration stepped in with state funding to maintain these services. “The administration saved the day by providing an $85 million increase in homeless service funding two years ago,” said Doug Kenshol, executive director of South Suburban PADS.
The Illinois Shelter Alliance’s $100 million funding request includes $40 million to address the state’s shortage of 4,236 emergency shelter beds. The remaining funds would support transitional housing, prevention resources, and street outreach to tackle homelessness at every stage.
Advocates argue that investing in homelessness prevention is more cost-effective than addressing the long-term consequences. A report from the Illinois Department of Public Health highlighted the steep costs associated with homelessness, including a 10- to 20-year reduction in lifespan and $16 billion in medical expenses from 2017 to 2022.
Despite the progress made during the pandemic, advocates stress the need for sustained investment. “It’s going to take more than just two years of significant new investment to address homelessness and housing insecurity,” said Bob Palmer, policy director for Housing Action Illinois. “We need prolonged, regular public investments in affordable housing and ending homelessness.”
As Illinois faces its growing homelessness crisis, advocates hope the state will prioritize long-term solutions to ensure every resident has access to stable housing.
Illinois Lawmakers Pass Bill Easing Name Change Requirements
A bill aimed at protecting privacy and safety for transgender individuals, domestic violence survivors, and other vulnerable groups has cleared the Illinois legislature and is awaiting Governor JB Pritzker’s signature. If enacted, the measure will go into effect on March 1.
The legislation, House Bill 5164, eliminates the requirement for individuals seeking a name change to publish a notice in a local newspaper. It also allows applicants to request that court records related to their name change be “impounded,” meaning the documents will not be publicly accessible.
Under the bill, impoundment is available to anyone who self-attests that public disclosure of their name change would cause hardship or negatively impact their health or safety. Specific groups eligible for impoundment include transgender individuals, survivors of domestic violence or human trafficking, adoptees, refugees, and others.
Additionally, the bill reduces the residency requirement for name changes from six months to three, making the process more accessible to people relocating to Illinois from states with restrictive or discriminatory laws.
Proponents of the bill argue that the changes are necessary to protect vulnerable individuals from harassment and harm. “We are forcing survivors of domestic violence, human trafficking, and trans people to out themselves for what purpose?” said bill sponsor Rep. Kevin Olickal, D-Chicago. “This bill is about privacy and protection.”
Equality Illinois, Planned Parenthood, the Coalition Against Sexual Assault, and the Coalition Against Domestic Violence championed the legislation. Mike Ziri, public policy director for Equality Illinois, emphasized the risks posed by the current law’s publication requirement.
“Publishing name change details creates a public list of trans people and puts them at real risk for harassment and harm,” Ziri stated. “This bill will help people and aligns with our state’s values of equality and freedom.”
Critics of the bill raised concerns about potential abuse of the system. Sen. Steve McClure, R-Springfield, warned about the possibility of individuals using the process to conceal criminal backgrounds. Similarly, Sen. Sue Rezin, R-Morris, criticized the self-attestation process, which does not require documentation to support claims of hardship. “This allows for extraordinary potential to abuse the system and evade federal immigration authorities,” Rezin argued.
In response, bill sponsor Sen. Ram Villivalam, D-Chicago, countered that criminal records and debts are tracked through identifiers such as Social Security numbers, tax identification numbers, and fingerprints. The measure also requires courts to notify the Illinois State Police (ISP) of any name changes. The ISP will update criminal history records and offender registrations with both the new and former names for individuals with criminal backgrounds.
The bill’s proponents argue that the new measures will make the name change process safer and more equitable for those seeking to escape dangerous situations or align their identities with their true selves. Avi Rudnick, director of legal services at the Transformative Justice Law Project of Illinois, noted that the reduced residency requirement would also benefit those moving to Illinois from states with hostile or discriminatory laws. “Name changes can be a way for individuals to protect themselves or to move forward from domestic violence,” Rudnick said.
Indiana Considers Redrawing Borders to Include Illinois Counties
The Indiana General Assembly is considering a proposal to adjust its state borders to incorporate seven Illinois counties that recently voted to explore secession. While Indiana’s Republican House Speaker Todd Huston sees the move as practical, Illinois House Speaker Emanuel “Chris” Welch dismisses it as a “stunt.”
The idea gained traction after the November elections, during which seven rural Illinois counties—Iroquois, Calhoun, Clinton, Green, Jersey, Madison, and Perry—voted in favor of exploring the possibility of separating from Cook County to form a new state.
“We saw those election results and thought it would be worth having conversations about them joining Indiana,” Huston said. Huston argued the move aligns with Indiana’s economic and governance models. “There’s a lot of alignment on the economic front where those communities are and what Indiana is. We think Indiana is a great place to live, offering significant advantages in taxation, fiscal responsibility, and stability,” he said.
Illinois House Speaker Welch was unimpressed by the proposal, emphasizing his focus on state priorities over partisan distractions. “Speaker Welch’s focus is on doing work that will raise wages for families, create opportunities for students, entrepreneurs, and innovators, and unite people across Illinois—not on partisan stunts intended to divide people,” Welch’s spokesperson, Jon Maxson, said in a statement.
The secession movement stems from dissatisfaction with Cook County’s political and economic dominance in Illinois. Voters in the seven counties have expressed a desire to examine leaving Illinois entirely.
For Indiana to expand its borders, a constitutional process would need to be followed, requiring legislation from both states to redraw boundaries. Illinois would also need to agree to relinquish the counties—a prospect many view as politically unlikely.
For now, the proposal remains speculative, but it highlights ongoing political tensions and the growing dissatisfaction of rural communities within Illinois. Whether the idea gains traction or fizzles out as a political maneuver remains to be seen.
Stay well,
Mike Paone
Executive Vice President
Joliet Region Chamber of Commerce & Industry
[email protected]
815.727.5371 main
815.727.5373 direct