Government Affairs Roundup
“Your Timely Roundup of Local, State, and Federal Updates”
Chamber members:
A flurry of information causing worry in the past 36-48 hours on federal spending that would have impacted many in the area seems to have ended for the time being. See below for more information on that matter. Additionally, read more about how EV programs may be altered based on federal changes as well as a reminder on grants available.
*Government Affairs Roundup brought to you by CITGO*
Judge Blocks President Trump’s Federal Spending Freeze
A federal judge has temporarily blocked President Donald Trump’s directive to freeze federal financial assistance, a move that had sent shockwaves across states, cities, universities, and nonprofits reliant on government funding.
U.S. District Judge Loren AliKhan issued the ruling just minutes before the order from the White House Office of Management and Budget was set to take effect. The directive, issued by Trump’s acting budget director, sought to “temporarily pause all activities related to obligation or disbursement of all Federal financial assistance.” This sweeping halt targeted funding for foreign aid, non-governmental organizations, diversity and inclusion programs, gender-related initiatives, and environmental projects linked to the Green New Deal.
The freeze threatened more than $1 trillion in annual federal funding distributed to states and local governments. In Illinois, where 36% of the state’s revenue in fiscal year 2022 came from federal sources, officials scrambled to mitigate the potential fallout.
Illinois Comptroller Susana Mendoza stated that her office was working rapidly to process federal funds before the deadline. Meanwhile, Gov. JB Pritzker directed his administration to assess the impact on the state’s budget and public services. State agencies reported issues accessing federal funding systems, including Medicaid disbursements.
Universities, heavily reliant on federal grants, were also thrown into uncertainty. The University of Chicago responded by instructing faculty and staff to suspend non-personnel expenditures on federally funded research, including equipment purchases, travel, and new experiments. Provost Kate Baicker addressed the crisis in a memo, stating, “We must proceed under the assumption that grant expenditures incurred after today while this memorandum is in effect may not be covered by federal funding.”
According to the National Science Foundation, about 40% of basic research funding nationwide originates from the federal government, making the freeze a significant disruption to academic institutions.
The legality of Trump’s order remains in question. A 50-year-old federal law limits the executive branch’s ability to pause funding without congressional approval. Critics argue the directive oversteps presidential authority.
Sen. Dick Durbin condemned the freeze as both unconstitutional and harmful, stating, “Every American relies on federal funding—from public safety, disaster relief, and medical research to small business loans, Head Start programs, and veterans’ care. Denying critical funding for our families will not make America great.”
Mendoza highlighted the immediate impact on Medicaid, revealing that her office processed $518 million in Medicaid bills before the administration cut off access to federal disbursement systems.
Update: President Donald Trump rescinded an order freezing an array of federal grants, loans and financial assistance, a dramatic reversal after days of uncertainty and anxiety rocked governments and nonprofit organizations.
The reversal, issued by the White House Office of Management and Budget, stated that the original memo was “rescinded” and directed questions about implementation to agency and department lawyers, according to people familiar with the matter. The change comes after a federal judge temporarily blocked the directive Tuesday.
“OMB has rescinded the memo to end any confusion on federal policy created by the court ruling and the dishonest media coverage,” White House Press Secretary Karoline Leavitt said in a statement.
“This action should effectively end the court case and allow the government to focus on enforcing the President’s orders on controlling federal spending,” she added. “In the coming weeks and months, more executive action will continue to end the egregious waste of federal funding.”
She said executive orders, banning the use of federal funds for diversity programs, abortion and other policy priorities opposed by the new Trump administration, “remain in full force.”
Illinois’ Electric Vehicle Goals Shift Amid Federal Policy Changes
As the Illinois Environmental Protection Agency (EPA) rolls out another round of funding for its electric vehicle (EV) rebate program, the national policy landscape is undergoing significant changes following a shift in the White House administration.
The Illinois General Assembly has allocated up to $14 million to the Illinois EPA for the EV rebate program in the current fiscal year. Gov. J.B. Pritzker reaffirmed his commitment to expanding EV accessibility in Illinois, stating, “Through our nation-leading Climate and Equitable Jobs Act, the Illinois Electric Vehicle Rebate Program is making EV ownership more accessible and affordable for Illinoisans.” Pritzker has set a goal of having 1 million electric vehicles on Illinois roads by 2030.
However, federal policies are shifting under President Donald Trump, who recently signed an executive order reversing former President Joe Biden’s target of having EVs comprise 50% of new car sales by 2030. Trump’s directive also scales back EPA emission regulations that have been encouraging automakers to produce more zero- and low-emission vehicles, including plug-in hybrids.
“I terminated the ridiculous and incredibly wasteful Green New Deal, I call it the Green New Scam, withdrew from the one-sided Paris Climate Accord, and ended the insane and costly electric vehicle mandate,” Trump stated at the World Economic Forum. “We’re going to let people buy the car they want to buy.”
Trump’s executive order further revokes unspent government funds designated for EV charging station development, a move that could impact infrastructure expansion efforts across the country.
Charging accessibility remains a significant challenge, especially in rural areas. Ryan McKinnon of Charge Ahead Partnership, a coalition focused on growing the EV charging marketplace, acknowledges that the public demands fast chargers but notes that the industry is still in a transitional phase. “The fact is that most charging stations remain few and far between, they’re often in really weird locations or hard to find areas, and there are tons of broken chargers,” said McKinnon.
While EV sales continue to grow across the U.S., reaching 1.3 million vehicles sold last year, they still account for only 8% of total new passenger vehicle sales, according to Cox Automotive.
The debate over vehicle mandates is expected to play out in court, with stakeholders on both sides preparing for legal battles. “Leadership from the Trump-Vance administration is critical to protecting consumer choice and stopping federal and state efforts to phase out and effectively ban internal combustion engine vehicles and American-made liquid fuels,” said Chet Thompson, president of American Fuel & Petrochemical Manufacturers.
With federal support for EV initiatives shifting, Illinois and other states pushing for EV expansion may face new hurdles in achieving their ambitious goals. The future of EV policy in the U.S. remains uncertain, as regulatory battles over emission standards and consumer choice continue to unfold.
Regulatory Relief Among the U.S. Chamber’s Top 2025 Priorities
Last week, the U.S. Chamber shared the first of a series of recommendations of regulations that imposed unnecessary costs on consumers and burden on the economy that should be overturned using the Congressional Review Act (CRA).
Reducing regulatory the burden on American businesses and workers, while preserving consumer choice and affordability, is among the Chamber’s top priorities in 2025.
“The last four years saw a regulatory onslaught, but few agencies were more egregious in their overreach than the Federal Trade Commission (FTC) and Consumer Financial Protection Bureau (CFPB)While undoing government overreach and micromanagement of business will take some time, Congress can utilize the Congressional Review Act (CRA) to eliminate regulations issued at the end of the Biden Administration before they become permanent policy,” said Neil Bradley, Executive Vice President and Chief Policy Officer at the Chamber.
The first round of recommendations includes three CRA-eligible regulations that Congress should roll back to protect consumers from higher prices and decreased choice.
- The HSR Rule from the FTC and Department of Justice (DOJ): The Rule dramatically increases the information required to be included for every merger notification. This increased bureaucracy will stifle innovation, reduce market efficiencies, and ultimately harm consumers who benefit from the competitive dynamics that mergers can foster.
- The Negative Option (aka Autorenewal) Rule from the FTC: The Rule will deter businesses from providing sensible, consumer-friendly subscriptions and instead leave Americans with fewer options, higher prices, and more headaches.
- The Medical Debt Rule from the CFPB: The Rule would limit the availability of financial products to everyday consumers. The rule could cut off responsible credit to those who need it best. The Chamber supports increasing—not limiting—information included on credit reports to expand access to credit and to protect consumers from risky loans.
In a Wall Street Journal op-ed following the November 2024 election, U.S. Chamber President and CEO Suzanne Clark said deregulation “rips economic power out of the hands of those who didn’t earn it and don’t know how to wield it. It gives power back to consumers, workers and business leaders.”
Policymakers must work together to reduce regulatory the burden on businesses and workers. By rolling back these three CRA-eligible regulations, Congress can protect consumers from higher prices and increase choice.
IBHE Approves Fiscal Year 2026 Budget Recommendations
The Illinois Board of Higher Education (IBHE) has approved its fiscal year 2026 budget recommendations, proposing a 4% overall funding increase—totaling $108.8 million—to support the state’s equity-driven higher education strategic plan, A Thriving Illinois. This recommendation excludes funding for the State University Retirement System (SURS).
IBHE Chair Pranav Kothari emphasized the importance of these recommendations in making higher education more equitable. “The Board takes seriously its charge to put forth budget recommendations that continue to make our higher education system more equitable,” Kothari stated. “While the state’s forecast budget deficit cannot be ignored, higher education spending is an investment in Illinois’ economy, talent, and future.”
IBHE Executive Director Ginger Ostro echoed this sentiment, stressing that an adequately funded higher education system is critical to the state’s economic health. “An equitably funded higher education system means a thriving Illinois economy,” Ostro said. “There’s still a long road ahead, but this budget will help us continue that momentum.”
The recommended budget includes several targeted increases to enhance affordability, accessibility, and workforce development:
- $50 million increase for the Monetary Award Program (MAP) – Total MAP funding would rise to $761.6 million, advancing IBHE’s long-term goal of reaching $1 billion for student financial aid within a decade.
- $24.7 million (2%) increase in public university funding – These funds aim to close equity gaps in student access, persistence, and completion by providing necessary support services, particularly for low-income students.
- $7.2 million (2%) increase for community colleges, adult education, and career and technical education – Recognizing the crucial role of community colleges in workforce preparation, this funding will help sustain their contribution to Illinois’ economic needs.
- $15 million increase for Early Childhood Access Consortium for Equity (ECACE) Scholarships – These scholarships will support upskilling for the state’s early childhood workforce.
- $4 million increase for the Pipeline for Advancement of the Healthcare Workforce (PATH) program – This initiative will bolster efforts to train and retain professionals in nursing and other healthcare fields.
- $3.5 million in new funding for a Center for Basic Needs at the Illinois Community College Board – This center will address essential student needs to ensure academic success.
- $1.8 million increase for the state’s direct college admissions program – This expansion will improve access to higher education for Illinois students.
IBHE’s budget recommendations are now moving to Governor JB Pritzker and the Illinois General Assembly for review and potential approval. If enacted, these investments will strength the state’s higher education system, ensuring greater access and equity for all students while also addressing critical workforce needs.
Child Care Provider Grant Returns in February
Will County’s childcare provider grant is returning for its second year, making $225,000 available for licensed providers to improve and expand services. The Elevate Will County Child Care Provider Grant offers grant funds for educational materials, developmental support services, staff training, play equipment, and overall improvements to physical space.
Applications will be accepted between February 3 and March 14, 2025. A technical assistance workshop for providers will be held on February 4. The grant opportunity is available to any childcare provider licensed by the Illinois Department of Children and Family Services serving children ages zero to five years old in Will County.
In its first year, this grant opportunity awarded funding to 25 licensed childcare providers, creating an improved educational experience for over 1,700 children throughout Will County. Due to the high demand of this grant opportunity in 2024, the County Board voted to fund the grant for a second year in 2025. The grant is funded by State of Illinois Cannabis Sales Tax revenue received by the County.
DCEO Small Business Grants
Small Business Capital and Infrastructure Grant Program
Program Details: This program will support small businesses with capital resources that can be used for infrastructure improvements, acquisition of essential equipment, or purchase of new property. Please see attached Program flyer in both English and Spanish, as well as a copy of the Notice of Funding Opportunity (NoFO).
Award range: $10,000 – $245,000 per award
Eligible Applicants: Businesses owned by Socially Economically Disadvantaged Individuals (SEDI) with a maximum of 25 full-time permanent employees OR Very Small Businesses (VSB) with less than 10 employees. Note: Only applicants who are GATA pre-qualified will be eligible for awards under this Program.
Application Deadline: April 7, 2025, at 5:00 p.m.
Federal Grant Match Support Program
Program Details: This program will make funding available to Illinois-based businesses and organizations seeking competitive federal grants. This match program will encourage more applicants to apply for federal grant opportunities, provide critical assistance to meet the minimum match eligibility requirements, increase the competitiveness of applications, and provide the State of Illinois with an opportunity to make a firm commitment and demonstration of support for projects that are well aligned with the State’s economic development goals and priorities.
Eligible Applicants: Nonprofits, educational institutions, local governments, and businesses.
Application Deadline: General announcement open with no specific application due dates.
Stay well,
Mike Paone
Executive Vice President
Joliet Region Chamber of Commerce & Industry
[email protected]
815.727.5371 main
815.727.5373 direct