Government Affairs Roundup
“Your Timely Roundup of Local, State, and Federal Updates”
Chamber members:
Familiar topics included in today’s update. The threat of a government shutdown looms around the corner once again. Tariffs also continue to make news as well as a pair of new grants open.
If you haven’t already, mark your calendars for October 1st as we’ll be joined by Andy Manar, Illinois Deputy Governor for Budget & Economy for a Legislative Luncheon. Reservation information will be out tomorrow. Also in October, Will County Executive Jennifer Bertino-Tarrant will be giving her State of the County address on the 29th. Sandwiched in between those two events will be our Government Affairs committee’s trip to Washington, D.C. – please share any topics and / or information that you would be interested in us sharing.
*Government Affairs Roundup brought to you by CITGO*
Another Shutdown Deadline
Once again, Congress is facing a September 30 deadline to keep the government running. This week, Republicans got a crucial signal from the White House to move forward with negotiations.
Budget aides delivered President Donald Trump’s list of “anomalies” — special exceptions the administration wants lawmakers to include in any stopgap funding bill. House Speaker Mike Johnson told Republicans that leaders had been waiting for the White House’s direction before engaging in serious talks over a spending deal.
House Appropriations Chair Tom Cole (R-Okla.) confirmed that lawmakers were still “waiting” to see the list, which could shape how difficult the negotiations become. Requests for additional immigration or law enforcement funding, for instance, could trigger partisan fights with Democrats.
When it came to timing, Johnson remained “conspicuously silent” during a recent GOP leadership meeting. He avoided committing to how long a short-term funding measure should last. Johnson said he would prefer to negotiate with the Senate on full-year appropriations bills but acknowledged that a continuing resolution may be necessary to prevent a shutdown.
The Trump administration has indicated it wants a stopgap plan that stretches through Jan. 31, but appropriators are leaning toward a different approach. At stake is more than just a date: the timeline has become a proxy battle in a larger fight over whether to tie a government funding deal to the extension of expiring health insurance subsidies.
Some appropriators, including Sen. Susan Collins (R-Maine), favor a much shorter continuing resolution — one that expires the Friday before Thanksgiving — to allow time for full-year funding talks and possibly a health care deal. The White House, however, is siding with GOP hard-liners who want to delay any resolution until after the subsidies’ Dec. 31 expiration date.
President Trump has yet to weigh in directly on the fate of those expiring tax credits, but his support will ultimately be critical to any agreement.
A combined funding-and-subsidies package may prove to be the only path to avoid a shutdown this year. But reaching such a deal will be anything but easy.
Supreme Court to Hear Challenge to Trump’s Tariffs
The U.S. Supreme Court has agreed to take up the legality of President Donald Trump’s aggressive tariffs, a dispute with sweeping consequences for U.S. businesses and international trade. The justices said they will hear arguments in November in two related cases — one brought by a group of small businesses nationwide, and another involving two suburban Chicago educational toy companies.
At the center of the challenge is whether Trump exceeded his authority under the 1977 International Emergency Economic Powers Act (IEEPA), a statute that allows presidents to regulate imports in times of national emergency. Two lower courts have already ruled that the law does not give presidents unlimited power to impose tariffs. In August, the U.S. Court of Appeals for the Federal Circuit affirmed that conclusion but allowed Trump’s tariffs to remain in effect while the administration appeals to the high court.
One of the cases now before the justices comes from Learning Resources Inc. and hand2mind Inc., two family-owned toy companies based in Vernon Hills, Illinois. Together they employ about 500 people in Illinois, California, and New York, and import most of their products from China, Taiwan, South Korea, Thailand, Vietnam, and India.
In a Supreme Court brief, the companies said the tariffs would cost them $100 million in 2025, up from $2.3 million in 2024 — a 44-fold increase. “The IEEPA tariffs are having a massive impact on virtually every business that relies on imports, many of whom (like [the toymakers]) are now facing an existential crisis,” they told the justices.
A federal district court initially blocked Trump’s tariffs as applied to the two companies, but an appeals court put that injunction on hold. That prompted the toymakers to appeal directly to the Supreme Court.
The larger case was brought by five small businesses represented by the Texas-based nonprofit Liberty Justice Center. Their attorneys argue that only Congress, not the president, has the constitutional authority to impose taxes — including tariffs.
“It is bedrock constitutional law … that Congress, not the President, has authority over all taxes on the American people,” they wrote in their filing. The businesses say Trump’s sweeping tariffs — hitting every U.S. trading partner with rates of at least 10%, and as high as 50% for some — go far beyond what IEEPA allows. The statute, they argue, does not even mention tariffs.
Trump’s administration counters that the law’s phrase “regulate … importation” grants the president broad authority to use tariffs in response to emergencies such as the fentanyl crisis and persistent trade deficits. U.S. Solicitor General D. John Sauer told the justices that the tariffs are pulling America “back from the precipice of disaster” and asked for expedited review — with briefs due by Oct. 20 and oral arguments the first week of November.
Supporters of the challenge say the administration is claiming virtually unchecked power: “The government’s case rests entirely on the notion that the phrase ‘regulate … importation’ … constitutes a boundless power to impose tariffs on the American people whenever the President wants, at whatever level he wants, for whatever countries and products he wants, and for as long as he wants,” the Liberty Justice Center wrote.
The administration disputes that characterization. Treasury Secretary Scott Bessent told the Court that removing the president’s tariff authority would “gravely undermine” his ability to conduct diplomacy and protect national security. He warned that the appeals court ruling has already weakened U.S. leverage in trade talks, saying “world leaders are questioning the president’s authority to impose tariffs, walking away from or delaying negotiations.”
Between January and June 2025 alone, Trump’s tariffs generated $58.5 billion in revenue before accounting for tax offsets, according to the Penn Wharton Budget Model. The administration argues this money helps restore U.S. manufacturing, reduce the tax burden on families, and pay down the national debt.
But businesses and economists caution that tariffs function as a tax on imports, raising costs for companies and often leading to higher consumer prices. Critics warn that widespread tariffs could ripple through the economy, affecting everything from toys and electronics to food and clothing.
The Supreme Court’s decision to hear both cases sets up a major test of executive power, congressional authority, and U.S. trade policy. Oral arguments are scheduled for November, and the Court’s ruling could reshape the balance of power over tariffs — and determine the future of Trump’s trade strategy.
Economic Index Shows Reduced Uncertainty, More Stability in Midwest
The Federal Reserve Bank of Chicago’s Survey of Economic Conditions Activity Index points to greater stability and reduced uncertainty across five Midwestern states. The index rose to +1 in August, up from –22 in July, according to Thom Walstrum, principal business economist at the Chicago Fed.
“The survey reading for August was surprisingly strong, given what other similar indicators are saying,” Walstrum said. “But there’s also a fair amount of noise in this indicator. It tends to be jagged — moving up one month after moving down the next.” The Fed’s Seventh District covers Illinois, Indiana, Iowa, Michigan, and Wisconsin.
Walstrum noted that three-month averages align more closely with other economic measures.
“Sales growth continues to be positive but a little bit below average,” he said. “I would say the same with hiring — it’s positive, growing, but also below average.”
Earlier this year, many Illinois politicians pointed to Trump administration policies as fueling economic uncertainty. Walstrum confirmed that survey data did reflect an uptick in policy-related uncertainty at the start of the year. But conditions now appear more stable.
“It went pretty negative in the spring, and it’s been rising ever since,” Walstrum said. “The stability after there was a lot of uncertainty to start the year — things have kind of stabilized, and outlooks have been improving.”
He emphasized that the survey is a short-run indicator and that government policy effects tend to come from the federal level, not state or local policy. The survey also pointed to rising input and price growth, consistent with broader inflation data. Meanwhile, the Chicago Fed’s National Financial Conditions Index held steady at –0.56 in the week ending Aug. 22, suggesting stable financial conditions overall.
Flooding Impact on Business – Survey
Following this past weekend’s flooding, the chamber is working with the Will County Emergency Management Agency (EMA) to identify businesses that were affected and determine what resources may be available to assist in their recovery.
Disasters put a tremendous strain on businesses, and timely information is critical for connecting them with the right aid. National studies show that up to 40% of small businesses never reopen after a disaster, and many more face lasting financial challenges. The sooner we can understand the local impact, the stronger our case will be for bringing recovery resources to our community.
To help in this effort, please complete and/or share the following survey link with your team and fellow businesses: www.willcountyema.org/storm – Ignore the text on the landing page stating that the survey is closed, you should still be able to access at least through this Friday.
Through your participation, you’ll play a key role in helping the Will County EMA gather the data needed to measure the scope of the damage and begin coordinating assistance.
Thank you in advance for your feedback!
Route 66 Grants Available Through Heritage Corridor Destinations
The Route 66 Road Ahead Partnership is celebrating the 100th Anniversary of Route 66 with its Preservation & Economic Development Grant Program [PED] – an Official Route 66 Centennial Project. The PED program will provide $42,500 to support Route 66 businesses and attractions this year.
Up to 20 grant awards of $2,125 each will be made by a Route 66 PED Grant Program Review Committee. Applications are open now. Deadline to apply is September 29, 2025.
Apply Now – https://www.hcdestinations.com/grants
Will County Launches Revitalization Grant for Small Businesses and Non-Profits
Funding available for physical space enhancements and accessibility improvements
Will County has launched a grant opportunity aimed at supporting small businesses and non-profits in enhancing their physical spaces and promoting accessibility. $300,000 has been made available to support external improvements, Americans with Disabilities Act (ADA) accessibility projects, and sustainability enhancements.
“This investment in small businesses and local non-profits is aimed at empowering economic vitality and community development efforts throughout the county,” said County Executive Jennifer Bertino-Tarrant. “Small businesses are anchors of our economy and non-profits play an important role in local communities. This grant is aimed at supporting their success and growth.”
The “Elevate Will County – Community Revitalization Grant” is funded by State of Illinois Cannabis Sales Tax revenue received by the County and allocated by the Will County Board in the Fiscal Year 2025 Budget. The goal of the grant is to promote inclusive economic growth and community revitalization.
The grant is available to any small business or non-profit entity with a physical location in Will County with fewer than 20 employees and an annual gross revenue that should not exceed $2 Million. Priority will be given to physical locations within an R3 zone.
“By prioritizing R3 zones and businesses with fewer than 20 employees, we’re investing directly in the people who need it most—whether through beautification projects or critical ADA accessibility upgrades,” said County Board Member Destinee Ortiz. “With reimbursement and up to a 50% in advance, we’re removing barriers so these businesses can thrive and keep driving local growth.”
Eligible improvements include exterior beautification projects or improvements aimed at ADA compliance. Projects may include façade enhancements, signage updates, landscaping, and projects that support long-term durability and environmental benefits. Accessibility modifications may include ramps, accessible restrooms, door-widenings, or signage.
Grants can be awarded up to $15,000 for each awarded grantee. Funds will cover reimbursement costs up to 100% of eligible project costs and grantees can request up to 50% of the awarded funds in advance.
Funds must be expended between October 1, 2025, and September 30, 2026.
Applications will be accepted until September 26, 2025. For more information or to apply, visit www.willcounty.gov/revitalization-grant.
Stay well,
Mike Paone
Executive Vice President
Joliet Region Chamber of Commerce & Industry
mpaone@jolietchamber.com
815.727.5371 main
815.727.5373 direct