Government Affairs Roundup
“Your Timely Roundup of Local, State, and Federal Updates”
Chamber members:
A government shutdown has been averted once again, pushing the topic back once more until September. More information on that topic below. On the state side of things, read more on the topic of taxing drivers by the mile rather than a tank of gas.
Today’s roundup is a little lighter than usual as it was pre-planned since our Government Affairs committee members attended a chamber lobby day in Springfield today with meetings scheduled with our local state Senators & Representatives.
Tomorrow morning is our City of Joliet candidate forum featuring the five individuals running for city council seats on April 1st. Finally, there are two grants listed below that we are sharing once again for your knowledge.
*Government Affairs Roundup brought to you by CITGO*
Senate Passes Government Funding Bill, Averting Shutdown
The Senate voted Friday afternoon to approve a House Republican-drafted bill funding the government through September, narrowly avoiding a shutdown just hours before the deadline.
The bill passed 54-46, largely along party lines. Two members of the Democratic caucus—Sen. Jeanne Shaheen (D-N.H.), who is set to retire, and Sen. Angus King (I-Maine)—voted in favor. Sen. Rand Paul (R-Ky.) opposed the measure.
With its passage, lawmakers have postponed any further government funding battles until the fall, allowing Republicans to shift focus toward key agenda items, including border security funding and extending the 2017 Tax Cuts and Jobs Act.
The legislation cleared the House on Tuesday with a slim 217-213 vote, receiving support from only one Democrat. Its passage sparked division among Senate Democrats, as the bill was drafted without their input.
Key provisions of the bill include a $6 billion increase in defense spending, expanded border enforcement funding, and a $13 billion reduction in non-defense spending. However, it lacks directives on how the Trump administration must allocate funds, prompting concerns from some Democrats that the White House could redirect money to align with its own priorities.
Before final passage, the Senate debated and rejected several amendments:
- Sen. Tammy Duckworth (D-Ill.) proposed reinstating veterans fired from federal jobs under Trump.
- Sen. Chris Van Hollen (D-Md.) sought to eliminate the Department of Government Efficiency.
- Sen. Jeff Merkley (D-Ore.) attempted to reverse a $20 billion cut to IRS tax enforcement.
- Sen. Rand Paul (R-Ky.) proposed codifying foreign assistance cuts recommended by the Department of Government Efficiency.
- Senate Republicans blocked all Democratic amendments, while a bipartisan majority defeated Paul’s proposal.
Any modifications would have required the bill to return to the House for final approval, potentially missing the funding deadline.
With the legislation now enacted, lawmakers have a reprieve from funding disputes until later this year.
Consideration of Mileage-Based Tax to Replace Gas Tax Revenue
As vehicles become more fuel-efficient and electric cars gain popularity, Illinois faces a growing challenge: declining revenue for road maintenance and infrastructure projects. The state’s motor fuel tax, a primary funding source for roads, bridges, and public transit, is generating less revenue as gasoline consumption decreases.
To address this issue, State Sen. Ram Villivalam (D-Chicago) has introduced legislation proposing a pilot program to evaluate a “road usage charge”—a tax based on miles driven rather than fuel consumption. “We need to ensure there’s sustained funding to ensure the safety of our roads, bridges, and mass transit,” Villivalam told the Sun-Times.
Under the current system, electric and fuel-efficient vehicles contribute little or nothing to the gas tax, despite using the same infrastructure. Marc Poulos, executive director of Operating Engineers Local 150, argues that a mileage-based tax would provide a more equitable solution. “Everybody’s been in search of the one-size-fits-all fix … and the real fix is a road usage charge, which is essentially playing off the tollway system,” Poulos said.
Illinois toll roads currently charge drivers around seven cents per mile. Under the proposed system, drivers could pay three to four cents per mile, in addition to existing tolls and taxes.
The Illinois Department of Transportation (IDOT) would oversee the pilot, with approximately 1,000 drivers signing up through the Secretary of State’s office. Participants would report their vehicle’s fuel efficiency and mileage, using one of the following methods:
- A transponder installed in the car
- Submitting a photo of their odometer to IDOT
- Drivers who end up paying more under the gas tax than they would through mileage fees would be eligible for a refund.
Illinois is not the first state to explore mileage-based taxation. Oregon and Utah have already implemented similar programs, while Pennsylvania, California, and three other states have initiated pilot studies, according to the National Conference of State Legislatures.
Oregon’s 2015 program allows volunteer motorists to pay a per-mile charge in exchange for a non-refundable credit on fuel taxes. Electric vehicle drivers are also offered incentives such as reduced registration fees.
Although Illinois’ mileage tax pilot program would not immediately replace the motor fuel tax, supporters argue that long-term solutions are necessary to sustain transportation funding. “The road usage charge pilot program in its inception would not pay for [the state’s short-term needs], but long term, we do need a solution to [how] we fund transportation in the state of Illinois,” Poulos told legislators at a recent hearing.
Illinois currently has the second-highest motor fuel tax in the U.S. after California, with drivers paying 66 cents per gallon in state fuel taxes, in addition to federal and municipal taxes.
The Chicago Metropolitan Agency for Planning first recommended a road usage tax in 2018, joining other cities that have explored alternative road-funding methods. Houston, for example, designates “fast lanes” on highways where motorists pay a mileage-based fee to bypass congestion. New York City imposes a congestion zone fee for drivers entering lower Manhattan.
Advocates of the plan argue that a mileage-based tax should eventually be implemented nationwide. “If you were to say to someone with an electric vehicle, ‘Do you think you should pay to maintain the roads and bridges that you’re driving on?’ I think most people would say yes,” Poulos said.
While the pilot program is still in its early stages, Illinois lawmakers are looking ahead to a future where road funding is based not on fuel consumption, but on actual road usage.
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