Chamber members:
Today’s roundup contains a number of updates on various subjects such as tariffs, more impact from the “Big, Beautiful Bill,” and additional state programming. Please make sure you at least scroll down to the end for information on a business owner survey as well as a survey of economic conditions.
*Government Affairs Roundup brought to you by CITGO*
Tariff Impact on Illinois
In a direct response to former President Donald Trump’s trade policies, Governor Pritzker signed an executive order Monday directing state agencies to assess the impact of tariffs on Illinois’ economy.
Calling the tariffs “a tax on working families,” Pritzker joined five other governors in taking state-level action. Illinois will evaluate risks across key sectors like food, healthcare, infrastructure, and emergency services.
“This order ensures we understand the real impact of the Trump Slump — from rising grocery bills to uncertainty in farms and factories,” Pritzker said.
The goal is to identify strategies to reduce harm, especially in agriculture and manufacturing — pillars of Illinois’ export-driven economy. Pritzker added, “Trump’s trade tantrums are hurting real people. We’re not waiting for D.C.”
The move comes amid rising costs, pressure on public programs, and concerns over declining federal funds for Medicaid and SNAP. Notably, Illinois is the top U.S. exporter to Canada and ranks in the top five for exports to Canada and Mexico.
Spending Bill Brings Solar Uncertainty, But Illinois Offers Some Relief
President Donald Trump’s July 4 signing of a federal spending bill—and a follow-up executive order—has rolled back tax incentives for solar and wind energy, sending shockwaves through the clean energy industry.
The new law phases out several tax credits expanded under the Inflation Reduction Act (IRA), including the 30% investment tax credit for residential, commercial, and utility-scale solar projects. An additional 10% credit for meeting labor standards is also set to expire. Instead, the government will now subsidize coal used in steelmaking and deny credits to projects involving foreign entities like China.
Trump’s July 7 executive order doubled down, ending subsidies for what he called “expensive and unreliable energy sources like wind and solar.” This raises uncertainty for battery storage and solar projects, which rely heavily on Chinese-made components.
The rollback has sparked a short-term rush. Solar installers like Windfree Solar in Chicago report customers hurrying to sign contracts before higher tax credit rates disappear. But the long-term outlook is clouded by uncertainty. “Fewer projects will be built in the short term,” said Jon Carson of Trajectory Energy Partners. “It’s a real bump in the road for solar.”
Carson and other industry leaders worry about investment slowdowns, especially as revised guidance could redefine when a project officially begins—possibly disqualifying current efforts from credits.
Two independent analyses—by the REPEAT Project and Energy Innovation—project higher energy prices as fewer renewable projects come online. Estimates suggest the average household could see an increase of $170–$280 annually by 2035. In Illinois, where natural gas still accounts for 17.3% of power generation, increased reliance on fossil fuels could push rates even higher. The Citizens Utility Board called the rollback a “gut punch” to both consumers and the state’s clean energy economy.
Despite federal setbacks, Illinois’ solar sector is somewhat insulated thanks to strong state policy. Gov. JB Pritzker emphasized that Illinois anticipated the need for independent action with the 2021 Climate and Equitable Jobs Act (CEJA). That law expanded solar incentives through programs like Illinois Shines and Solar for All, helping make the state a national leader in renewable support.
“Our revenue is driven by solar renewable energy credits,” said Eric Heineman of Windfree Solar. “Illinois is more insulated than any other state.” Heineman estimates that while payback on solar projects is currently around three years, it could double without federal incentives. Without state support, it might stretch to a decade.
Lawmakers are now considering a follow-up bill to CEJA that would create new incentives for battery storage and regulate data centers, which are straining the power grid. Environmental advocates argue the state should act during its October veto session to stay ahead. “The federal budget threatens progress, but Illinois can double down,” said Cate Caldwell of the Illinois Environmental Council.
Still, Illinois hasn’t fully delivered on CEJA promises. A recent audit found the Department of Commerce and Economic Opportunity failed to properly implement four of its workforce development programs, including those for formerly incarcerated individuals and communities hit hardest by climate change.
The department has since acknowledged the shortcomings and says it has taken steps to improve oversight and launch community job hubs for the renewable sector.
Nuclear Power Gains Traction in Illinois and Across the U.S.
After decades of stalled progress, nuclear power is regaining momentum in the U.S.—this time fueled by skyrocketing energy demand from AI data centers.
The long-hyped “nuclear renaissance” may finally be materializing, as bipartisan support for nuclear energy grows in statehouses from Arizona to Indiana. According to the National Conference of State Legislatures, over 200 nuclear-related bills have been filed so far this year, with dozens already enacted or awaiting signatures.
What’s the difference now? The focus has shifted from nuclear as a carbon-free replacement for coal to a solution for massive new energy needs—especially from hyperscale data centers operated by tech giants like Google, Amazon, and Microsoft. State lawmakers eager for economic development and job creation are courting these power-hungry facilities. And reliable, always-on nuclear energy is gaining appeal.
“The conversation around nuclear has changed,” said Illinois State Sen. Sue Rezin, a Republican and co-chair of the NCSL’s Energy Supply Task Force. “It used to be all about wind, solar and batteries. Now, with AI transforming the economy, there’s a huge need for power.”
Rezin, whose district surrounds three of Illinois’ six Constellation Energy nuclear plants, said local economic projects once sought 50 to 100 megawatts. “Now we’re seeing companies asking for up to 1,000 megawatts,” she said.
Nuclear advocates argue the technology offers what data centers require most: clean, reliable, and scalable energy. “They not only need the power,” said Christine Csizmadia of the Nuclear Energy Institute, “but they have a mandate that it be reliable and clean. Nuclear is one of the few technologies that can meet all those demands.”
While past nuclear expansion efforts were derailed by high costs, delays, and public fears following disasters like Chernobyl and Fukushima, today’s surge in demand is reshaping the conversation—and reviving interest in nuclear energy nationwide.
Illinois Budget Cuts Housing Funds
Illinois has reduced funding for housing and homelessness programs in its $55.1 billion fiscal year 2026 budget—even as homelessness continues to rise dramatically across the state. The budget, which took effect July 1, includes a $26.6 million cut to Gov. JB Pritzker’s flagship initiative, Home Illinois, aimed at reducing homelessness to “functional zero.” The program had previously seen significant funding growth—from $200 million in FY24 to $290 million in FY25—before this year’s pullback to $263.7 million.
Advocates say the timing couldn’t be worse. “Last year homelessness increased 116% in Illinois,” said Doug Kenshol, co-founder of the Illinois Shelter Alliance. “To be in the middle of this crisis and then have the state cut funding was beyond disappointing.”
According to the governor’s office, discretionary spending in the FY26 budget increased by less than 1%, prompting difficult decisions despite a $2 billion overall rise in state spending.
State Sen. Adriane Johnson (D-Buffalo Grove), who serves on the state’s homeless prevention task force, called the funding reductions “temporary” and said the state remains committed to long-term solutions. “We have a bold vision for ending homelessness, and we’re going to continue down that path,” she said. An Illinois Department of Human Services spokesperson echoed that, describing FY26 as a “maintenance year” and reaffirming the state’s commitment to fighting homelessness.
Although some programs saw increases—such as a $7 million boost for emergency and transitional housing, partly to integrate migrants into Chicago’s shelter system—others were cut sharply. The Court-Based Rental Assistance Program, which helps prevent evictions, lost $25 million in funding. That program alone has supported 7,500 households since its launch.
Overall, funding for all housing programs in FY26 dropped to $354 million, down $14.6 million from the previous year, according to Housing Action Illinois. Bob Palmer, the organization’s policy director, said the cuts reflect broader funding tensions. “The state is trying to do the best it can with limited resources,” Palmer said. “But if we’re serious about ending homelessness, we need to keep increasing support.”
He also noted that money from the Affordable Housing Trust Fund—intended for long-term rental housing—is now being used for emergency needs, diverting resources from permanent solutions.
The most recent data paints a stark picture. A January 2024 “point-in-time” count found 25,787 unhoused people in Illinois, up 116% from the year before. Of those, 13,891 were migrants, but non-migrant homelessness also rose 22%. Homelessness has jumped 207% in Chicago since 2020, with only a few counties like DuPage and St. Clair seeing declines.
Despite the rising numbers, Kenshol said Home Illinois is showing results—just not fast enough. “They’ve created great programs, distributed funds, built housing and shelter,” he said. “But we have to sustain that effort—and increase it—because we’re not there yet.”
According to the latest state data, Illinois currently has around 23,000 beds or housing units for homeless individuals. It needs at least 27,000 more to meet the demand. Without increased investment, the state’s task force warns, homelessness will continue to rise.
Illinois Cell Phone Taxes Rise Again, Still Highest in the Nation
With a new increase that took effect July 1, Illinois residents are now paying one of the steepest cell phone tax rates in the U.S.—nearly 38% on their wireless bills. The local wireless tax rose from 7% to 8.65% as part of the state’s new budget.
That figure includes 24.9% in state and local taxes and 12.8% in federal Universal Service Fund charges. For a typical family of four on a $100 plan, that amounts to about $38 a month, or $456 a year, above the national average of $320.
Neighboring states all have significantly lower combined tax rates:
- Wisconsin: 21%
- Iowa: 23%
- Indiana/Kentucky: 24%
- Missouri: 28%
Bill Clarifying Developer Contributions to School Projects Heads to Governor After Mundelein Dispute
Legislation that would confirm municipalities’ authority to require real estate developers to help fund local school construction is now awaiting Governor Pritzker’s signature—after a brief delay prompted by a high-profile development dispute in Mundelein.
State Rep. Daniel Didech (D–Buffalo Grove), the bill’s lead sponsor, lifted a procedural hold in late June, sending the measure to Pritzker’s desk. The governor has until August 23 to act. “I trust the governor and his team to give this matter thoughtful consideration,” Didech said. “Regardless, we’ll continue to pursue solutions that protect taxpayers and support our schools.”
The legislation stems from controversy over the proposed Ivanhoe Village project—a large-scale residential and commercial development on 773 acres of land owned by the Wirtz family, who also own the Chicago Blackhawks. Wirtz Realty Corporation plans to build thousands of homes, plus retail and light industrial space, near Route 60 and Peterson Road. Local school officials say the influx of new residents will place a heavy burden on nearby Fremont District 79 and Mundelein High School District 120.
Under a negotiated agreement with the Mundelein Village Board, Wirtz Realty would pay the districts a total of roughly $11 million, $6.6 million to District 79 and $4.3 million to District 120—based on formulas tied to the number and type of homes built. School officials, however, argue that’s far too low. District 79 sought $90 million, while District 120 requested $22 million.
Village leaders said they negotiated the best deal possible, given their understanding that they lacked legal authority to mandate developer impact fees. Didech said his bill aims to settle that question. “The legislation will leave no doubt that the village has the authority to secure necessary school funding and prevent property tax hikes,” Didech said.
Despite the bill’s momentum, Didech temporarily held it back to allow time for further negotiation between village officials, school districts, and the developer. His decision came after Robin Meier was sworn in as Mundelein’s new mayor and three new trustees joined the village board. Although preliminary talks were held, Meier has said substantial discussions would take place only after the governor signs the bill. That prompted Didech to move it forward. “Given her promise to engage in good faith with the school districts, I sent the bill to the governor,” Didech said.
Local education leaders hope the legislation spurs a better deal. “This is a critical opportunity for Mayor Meier to facilitate an improved agreement for all parties, including our taxpayers,” said District 79 Superintendent Trisha Kocanda. District 120 Superintendent Cory Tafoya echoed that his team remains ready to collaborate with the village. Meanwhile, the governor’s office says the bill is still under review.
Business Owner Survey
The University of Chicago Booth School of Business is conducting a survey to collect information from privately held/family-owned company owners and executives about the options business owners consider for the ownership transition of their business such as:
– keeping the company and having a family member succeed as the top executive
– selling the company to the non-family management team
– sell all or a portion of the company to outside investors such as a private equity fund, family office or individual investors
This information collected in this survey is confidential and for academic research only – it will be helpful in understanding the intentions and process used by private/family owned businesses to provide insights and recommendations for assisting family/privately-owned businesses with these important issues.
Please take a few minutes to complete this brief survey: click to begin survey
Or cut and paste this link in your browser:
https://chicagobooth.az1.qualtrics.com/jfe/form/SV_beIFPtPtKGZEw74
Chicago Fed Survey of Economic Conditions
Our Chicago office is collecting responses for the current Chicago Fed Survey of Economic Conditions. The last day to respond is Thursday, July 17th.
Go here to take the survey or copy and paste the URL below into your internet browser:
Stay well,
Mike Paone
Executive Vice President
Joliet Region Chamber of Commerce & Industry
mpaone@jolietchamber.com
815.727.5371 main
815.727.5373 direct