Government Affairs Roundup
“Your Timely Roundup of Local, State, and Federal Updates”
Chamber members:
We’re back this week with another roundup. Plenty to share below. I also wanted to share the link (don’t think shared earlier) to the State of the City luncheon video with Joliet Mayor Terry D’Arcy that took place in May and is now up on our YouTube channel: https://youtu.be/CuVr2LzvQkc?si=VhCeafJDM4cejywE
Additionally, last week we hosted our annual Legislative Recap as a breakfast event. We thank Senators Ventura and Loughran Cappel as well as Representatives Avelar, Walsh, Jr., and Benton for joining us and sharing their thoughts. Here is a link to a Herald News story covering the event: https://www.shawlocal.com/the-herald-news/2025/06/26/will-county-lawmakers-difficult-year-ahead-with-federal-budgets-trickle-down-effect-on-illinois/
Our Government Affairs committee is working to plan an interesting Legislative Coffee event in August – watch out for more details about this announcement!
*Government Affairs Roundup brought to you by CITGO*
Governor Pritzker Signs New Health Care Laws Targeting Drug Pricing and Expanding Insurance Protections
Governor JB Pritzker signed two significant health care bills on Tuesday aimed at reining in the rising costs of prescription drugs and expanding insurance protections for Illinois residents.
At a ceremony in Peoria, Pritzker criticized the influence of profit-driven intermediaries in the health care system.
“For too long our health care system has been infected by profit-seeking middlemen and predatory actors looking to make an extra dime at the expense of Illinois patients,” he said. “Seniors have been forced to pay through the nose for life-saving medications. Families have had to delay or decline medically necessary treatments because they can’t afford it anymore. And family businesses like independent pharmacies have had to shut their doors.”
Prescription Drug Affordability Act (HB 1697)
The first bill, House Bill 1697 – known as the Prescription Drug Affordability Act – targets pharmacy benefit managers (PBMs), the powerful intermediaries that negotiate drug prices on behalf of insurance companies.
PBMs have come under fire in recent years for practices that critics say prioritize profits over patients. These include steering customers toward pharmacies they own and engaging in “spread pricing,” where they charge health plans more than they reimburse pharmacies.
The new law will:
- Prohibit PBMs from directing patients to pharmacies in which they have a financial interest.
- Ban spread pricing practices.
- Establish a $25 million annual grant program to support independent pharmacies, funded through a tax on PBMs operating in Illinois.
David Bagot, president of the Illinois Pharmacists Association and an independent pharmacist in Petersburg, praised the legislation. “This bill represents the most comprehensive reform of pharmacy benefit managers we have seen in Illinois,” he said. “These companies have used our nation’s drug supply chain to benefit shareholders and executives while driving up costs for patients and driving pharmacies out of business.”
However, the Pharmaceutical Care Management Association, the national lobbying group for PBMs, pushed back, calling the measure “misguided.”
“Unfortunately, the legislation does nothing to address the fact that Big Pharma sets the price of the prescription drugs – and the price is the problem,” the group said in a statement. “Lawmakers have passed 20 bills regulating PBMs since 2016, none of which have led to lower drug prices.”
Healthcare Protection Expansion Act (HB 3019)
The second bill, House Bill 3019 – known as the Healthcare Protection Expansion Act – focuses on expanding patient access to insurance-covered services.
Key provisions include:
- Eliminating prior authorization for outpatient mental health services under state-regulated health plans. A similar restriction for inpatient and emergency mental health services was passed last year.
- Mandating coverage for travel-related expenses when patients must travel long distances for in-network care — a frequent challenge for rural residents.
State Sen. Laura Fine (D-Glenview), one of the bill’s sponsors, emphasized the importance of increasing accessibility. “Building on protections that make mental health care accessible for all Illinois residents, this law gives people more opportunities and flexibility to receive necessary services,” she said.
Together, the two bills mark a continued effort by Illinois lawmakers to address health care affordability and access — particularly for vulnerable populations and small health care providers.
Illinois Lawmakers Fall Short on School Cellphone Ban—for Now
Illinois students won’t face a statewide classroom cellphone ban just yet. A legislative proposal aimed at limiting cellphone use during school hours stalled before the end of the spring session, though lawmakers say the conversation is far from over.
The bill in question, Senate Bill 2427, would have required all school districts in the state to adopt policies restricting cellphone use during instructional time by the 2026–27 school year. These policies would need to be developed in consultation with students, parents, and educators and would also include guidance on how to store phones safely and securely during the school day.
The legislation passed the Senate unanimously, with strong bipartisan support and active backing from Governor J.B. Pritzker, who called for classroom cellphone limits during his State of the State address earlier this year. But despite appearing on the House schedule, the bill was never called for a vote before the legislature adjourned, leaving many to speculate that it got lost in the final hours of budget negotiations over the state’s $55 billion fiscal plan for 2025.
Senator Cristina Castro, the bill’s chief sponsor, said she encountered no major resistance to the proposal but acknowledged that some language in the bill required additional refinement. Representative Michelle Mussman, who sponsored the measure in the House, said lawmakers had raised a number of concerns that still need to be addressed. Among those were questions about how schools would handle student access to phones during emergencies, who would be responsible if a phone was broken or stolen, and how policies would be enforced—particularly whether they might disproportionately impact students of color.
Educator groups and teachers’ unions expressed a mix of cautious support and concern. Bryen Johnson, director of political activities for the Illinois Federation of Teachers, said the union agreed in principle with the goal of minimizing distractions in classrooms. However, the union refrained from filing official support for the bill due to unresolved issues around liability and implementation. “If a device breaks, who’s responsible for said device? What role, what responsibilities does the teacher have in that?” Johnson asked.
As currently written, SB 2427 includes a number of exceptions that would allow students to access their phones during the school day under specific circumstances. These include medical needs, requirements tied to an Individualized Education Program or Section 504 plan, language learning support, emergencies, or when a teacher permits phone use as part of a lesson. The bill also explicitly states that districts would not be allowed to enforce cellphone policies through fines, fees, or the use of school resource officers or local law enforcement. School boards would be required to review their cellphone policies every three years and ensure families are informed by posting the policy online or distributing it directly.
Despite the setback, lawmakers say they plan to revisit the proposal. Both Castro and Mussman confirmed that negotiations will continue over the summer and that the bill may return during the fall veto session. In a statement to Chalkbeat, the governor’s office signaled ongoing commitment to the measure, saying, “Like many pieces of legislation, this effort may take time, but regulating cellphone use in schools is a crucial step toward improving student focus and academic performance.”
Illinois is not alone in grappling with this issue. Half of all U.S. states have implemented or proposed some form of restriction on cellphone use in classrooms. States such as Colorado, Indiana, New York, and Tennessee have already passed legislation banning or limiting phones during school hours. Other states, including Michigan and New Jersey, are actively debating similar proposals.
Research continues to highlight the potential downsides of unrestricted cellphone use among students. A 2023 survey revealed that more than half of teens spend at least four hours a day on social media. Another study linked high social media use to increased levels of depression and anxiety in adolescents. Public support for school cellphone restrictions is also growing. According to a Pew Research Center survey, 68 percent of U.S. adults favor banning phones in classrooms, and support is even stronger—65 percent—among parents of K–12 students.
While the spring session ended without a vote, the issue is far from settled. Lawmakers, educators, and families will likely continue debating the best way to manage cellphone use in schools—balancing academic focus, safety, and fairness for all students.
Housing Development Authority Board Voices Concern Over Proposed U.S. Housing and Urban Development Cuts
Last Friday, the Illinois Housing Development Authority (IHDA) Board approved a resolution objecting to any decrease in funding for rental assistance in the U.S. Department of Housing and Urban Development (HUD) fiscal year (FY) 2026 budget that would also impact affordable housing development in Illinois and across the nation. The resolution affirms the critical importance of HUD-funded programs to Illinois residents, particularly low- and extremely low-income households, and highlights the devastating impact the proposed reductions would have on housing stability, community development, and the state’s broader economy.
“Programs like rental assistance are a necessity. They are lifelines that improve health, employment, and educational outcomes for families, seniors, veterans, and people with special needs,” said IHDA Board Chair King Harris. “Illinois receives an estimated $2.6 billion annually from HUD, dramatically cutting this funding would not only threaten the homes of our most vulnerable residents but also undermine decades of progress in affordable housing and equitable community investment. It would push countless families closer to eviction and homelessness while weakening the social and economic fabric of communities throughout Illinois.”
In Illinois, nearly 400,000 households receive rental housing assistance from HUD-funded programs such as the Housing Choice Voucher Program, Project-Based Rental Assistance, Section 202 Housing for the Elderly, and Section 811 Housing for Persons with Disabilities. In addition, dozens of Illinois municipalities receive and disburse more than $500 million in Community Development Block Grants (CDBG) each year to fund critical repairs to water, sewers, drainage, and other infrastructure to enhance safety and quality of life for their community.
“These dramatic cuts, if passed, will destabilize communities and economies,” warned IHDA Executive Director Kristin Faust. “When families lose access to safe, affordable housing, the effects ripple outward: school districts face increased turnover, healthcare systems bear the weight of housing-related health crises, and local economies suffer from lost tax revenue. Furthermore, the loss of HUD subsidies will cause widespread economic turmoil for institutional investors in affordable housing, potentially triggering another housing crisis. Slashing HUD’s budget isn’t just fiscally short-sighted, it’s socially and economically destructive.”
HUD is a critical partner in Illinois and in 2024, its rental assistance programs:
- Assisted 1,721 people through its Section 811 Housing for Persons with Disabilities program,
- Assisted 5,415 people through its Section 202 Housing for the Elderly program,
- Assisted 221,210 people through its Housing Choice Voucher program,
- Assisted 66,110 people through its Public Housing Rental Assistance program, and
- Assisted 96,723 people through its Project-Based Rental Assistance program.
Through the passage of this resolution, IHDA reaffirms its commitment to its partnership with HUD in administering essential programs. IHDA urges Congress to reject the FY26 proposal and to fully fund these HUD programs that benefit not only the people of Illinois but families, seniors, and veterans across the nation.
Governor Pritzker Announces 36 Awards Through Tourism Grant Programs
Governor JB Pritzker and the Illinois Department of Commerce and Economic Opportunity (DCEO) announced that $6.3 million in grant funding has been awarded to 36 grantees through three grant programs – the Route 66 Grant Program ($4 million), Tourism Attractions Grant Program ($1.7 million), and Tourism Private Sector Grant Program ($600,000) – as part of the state’s continued effort to boost tourism and welcome more visitors to Illinois.
“Whether you’re coming from down the road or across the globe, Illinois is the perfect destination for travelers,” said Governor JB Pritzker. “Through our tourism grant program, the State of Illinois is attracting more visitors than ever and channeling their impact to support economic growth, jobs, and community revitalization.”
“From Route 66 to world class museums, state parks, festivals, cities, and restaurants, Illinois has some of the greatest tourism attractions on the planet,” said Lt. Governor Juliana Stratton. “These grants will go towards not only keeping Illinois a first-rate destination for travelers, but ensuring that all communities of Illinois benefit from economic development and jobs that come from the millions of tourists traveling to our state every year.”
Route 66 Grant Program
The Route 66 Grant Program will help promote, develop, preserve, and educate visitors about assets along the Illinois Route 66 corridor in preparation for the 100th anniversary in 2026. Route 66 is one of the most famous roads in America, and it serves as an important historical and cultural symbol. Route 66 was designated in 1926 as part of the new numbered highway network and grew to be one of the most well-known and traveled highways. The construction of Route 66 helped make the Western part of the United States accessible to anyone with a car, while generating economic benefits for many communities along the Route. The full list of this round’s grant recipients can be found here.
“As Illinois’ world-class tourism industry continues to grow, the State of Illinois maintains its efforts to welcome more visitors to the state through numerous grant funding opportunities,” said DCEO Director Kristin Richards. “Illinois communities will greatly benefit from these investments as millions of visitors spend billions of dollars annually across the state – bolstering local economies and supporting jobs.”
Tourism Attractions Grant Program
The Tourism Attractions Grant Program will provide funding for the development or improvement of tourism attractions in Illinois, such as museums, recreation areas, amusement parks, and more. The goal of the program is to provide assistance for projects that increase the economic impact of tourism throughout Illinois by increasing visitation rates, boosting hotel occupancy, increasing local hotel and sales tax revenue, and more. The full list of this round’s grant recipients can be found here.
“The State of Illinois continues to make investments to boost tourism as 36 grantees receive a total of $6.3 million through three tourism grant programs,” said Representative Kimberly du Buclet (D – Chicago). “The grantees in the Route 66, Tourism Attractions and Tourism Private Sector Grant Programs will help showcase our great state to visitors from near and far.”
Tourism Private Sector Grant Program
The Tourism Private Sector Grant Program was created to attract, host and improve existing or develop new events, festivals and tourism-related projects across Illinois. This funding will support new, expanded, or enhanced events and festivals with costs such as advertising and marketing, transportation, building or equipment rental, receptions and banquets, registration, and entertainment. The full list of this round’s grant recipients can be found here.
The State of Illinois continues to prioritize its tourism industry as millions of visitors spend billions of dollars annually across Illinois, boosting economic development and supporting jobs in the industry. Illinois reached its highest-ever hotel revenue figures in FY24 with $322 million – a 4.5% increase over the previous record set in FY23. Additionally, Illinois welcomed 112 million visitors who spent $47 billion in 2023 – representing 1 million additional travelers spending $3 billion more than calendar year 2022.
The success of Illinois’ tourism sector is due to its commitment to supporting the industry as well as the Illinois Office of Tourism’s award-winning “Middle of Everything” campaign. Since it launched in 2022, the campaign has contributed to an additional 2.4 million trips equaling more than an additional $1 billion spent in Illinois hotels, restaurants, small businesses, and attractions, according to data from Longwoods International. Additionally, every $1 spent on the campaign equated to $75 in visitor spending while generating $7 in state and local tax revenue for every dollar spent – an enormous return on investment.
Pritzker Administration Announces 2025 Affordable Housing Tax Credit Developments
The Illinois Housing Development Authority (IHDA) Board approved awards totaling $24 million in federal Low-Income Housing Tax Credits (LIHTC) and an additional $39 million in federal and state subordinate resources that will finance the creation and preservation of 16 affordable housing developments in 11 counties throughout Illinois. The LIHTC awards are expected to generate an estimated $180 million in private capital to support the development of 850 affordable homes for low- to moderate-income families, seniors, and veterans.
“Every Illinoisan – present and future – deserves a safe and affordable place to call home,” said Governor JB Pritzker. “By leveraging the Low-Income Housing Tax Credit to spur millions in private development, we’re offering real housing solutions for working families, seniors, and veterans while creating jobs in construction and revitalizing communities up and down the state.”
The 16 approved developments include 11 new construction projects and five rehabilitation or adaptive reuse of existing buildings. New construction developments will create much-needed housing for seniors in Aurora, Du Quoin, and Channahon. Notable preservation efforts include the adaptive reuse of a closed school in Aledo and the rehabilitation of the historic Werner Brothers Storage Warehouse in Chicago’s Rogers Park.
“The Low-Income Housing Tax Credit is the most powerful tool we have to create affordable homes for working parents, for children who need a safe place to do their homework, and everyone who feels the crunch as rents continue to outpace wages,” said IHDA Executive Director Kristin Faust. “Every one of these awards is an investment in stronger communities, a more competitive economy, and a better quality of life for families across the state, and we are committed to working with our awardees as we make sure every Illinoisan has a safe, stable, and affordable home.”
LIHTC is a pivotal federal program that incentivizes private investment in affordable housing. Developers leverage these credits by selling them to investors, generating equity that supplements other public and private financing. This public-private partnership is the leading generator for affordable housing production throughout the United States. Importantly, units developed with LIHTC funding must remain affordable for at least 30 years, underscoring the State’s commitment to providing long-term housing solutions for an entire generation.
LIHTC allows IHDA to annually deliver new housing opportunities for low- to moderate-income renters across Illinois. Over the past five years alone, IHDA has utilized LIHTC to finance 121 developments, resulting in the creation or preservation of 5,901 much-needed affordable housing units. To learn more about LIHTC, click here.
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
Stay well,
Mike Paone
Executive Vice President
Joliet Region Chamber of Commerce & Industry
mpaone@jolietchamber.com
815.727.5371 main
815.727.5373 direct