Government Affairs Roundup
“Your Timely Roundup of Local, State, and Federal Updates”
Chamber members:
The federal government has officially shut down (partially), and there’s no sign it will reopen anytime soon. Congressional leaders are reminded today that it’s much easier to get into a shutdown than to get out of one.
Democratic and Republican leaders held competing news conferences this morning, followed by more failed funding votes in the Senate. The House is still out of town but is set to return next week. Senate Republicans are planning to hold daily votes, including during the weekend.
Unfortunately, due to these circumstances, the chamber Government Affairs committee has canceled our trip to Washington, D.C. in a few weeks. Thanks to those that have already provided input.
On a more positive note, in October, Will County Executive Jennifer Bertino-Tarrant will be giving her State of the County address on the 29th. Reservations are open to join us that day: https://jolietchamber.chambermaster.com/events/details/2025-member-lunch-october-state-of-the-county-address-from-will-county-executive-jennifer-bertino-tarrant-7725
*Government Affairs Roundup brought to you by CITGO*
Day 1 of Government Shutdown
There was no eleventh-hour deal. No last-minute cave by either side. The federal government went into shutdown just after midnight for the first time in nearly seven years, and right now the route back out is hard to see. Each side is blaming the other. Neither feels much pressure to cut a deal. Rather than negotiating, they’re chucking insults and posting memes. It’s probably best not to hold your breath for a speedy outcome.
Senate Democrats voted earlier today to block a House-passed stopgap funding bill that would reopen the federal government until Nov. 21, but several Democrats broke with Senate Democratic Leader Chuck Schumer (N.Y.) and supported the measure.
Wednesday’s vote marked the third time in two weeks that the House-passed continuing resolution failed to advance on the Senate floor, but it was the first time senators voted on the issue while the government is closed. The measure needed 60 votes to advance and failed 55-45, the same margin as Tuesday’s vote.
Three members of the Democratic caucus voted to advance the GOP resolution: Sen. Catherine Cortez Masto (Nev.), a member of the Democratic leadership team; Sen. John Fetterman (Pa.); and Sen. Angus King (Maine), an independent who caucuses with Democrats. They voted for the resolution Tuesday evening as well. Sen. Rand Paul (Ky.) was the only Republican to vote against the measure. He opposed it because he says it would prolong Biden-era funding levels.
Senate Majority Leader John Thune (R-S.D.) told Democrats this morning there’s “no way out” other than passing their bill. Several in GOP leadership have dubbed the impasse the “Schumer Shutdown,” pegging Democrats as “radical.”
Democratic lawmakers have leaned into their claim that Republicans are responsible for the shutdown for not agreeing to their demands on extending health care premium tax credits as part of a funding stopgap.
Senate Democratic Leader Chuck Schumer (N.Y.) gave a floor speech today, arguing the shutdown is Republicans’ doing “because Republicans refuse to negotiate a bipartisan bill that deals with the health care needs of the American people.”
How might this end? Well, it depends on who folds first. The last shutdown in early 2019 ended when Trump dropped his demand for border wall funding. (Plus, nearly a dozen air traffic controllers stayed home and temporarily shut down some air travel. But it took more than a month to get to that point.)
Fast-forward to today, and U.S. airlines are again warning of potential flight delays, while Democrats are arguing it’s up to Trump to end the shutdown. This time, however, Democrats are the ones in a position demanding something — health provisions.
If five more Democrats vote with Republicans, it would end the shutdown.
Impact of a Government Shutdown
The federal government has partially shutdown effective October 1, furloughing hundreds of thousands of workers and halting dozens of public services. Upwards of 750,000 federal employees could be furloughed each day, according to the nonpartisan Congressional Budget Office (CBO).
A shutdown occurs when agencies run out of money to fund their operations. Under the Ant deficiency Act, the government cannot spend money it doesn’t have, so agencies must generally suspend operations until Congress passes new appropriations. Congress is supposed to approve 12 annual spending bills to keep agencies running, but lawmakers often run short on time and pass temporary stopgap measures instead.
This year, the House approved a short-term Continuing Resolution to extend current funding levels until November. Senate Democrats, however, blocked it, demanding concessions that Republicans refuse to grant.
What Stays Open — and What Doesn’t
In a shutdown, the effects on everyday Americans would depend heavily on job, location, and income. Essential services — including national security, law enforcement, Border Patrol, emergency response, and outbreak monitoring — would continue. Amtrak, airports, and passport services would still function, as would student loan processing. Social Security, Medicare, Medicaid, veterans’ benefits, and mail delivery would also continue because they are funded outside the annual appropriations process.
But many programs would grind to a halt. The Food and Drug Administration would suspend routine food safety inspections. The Environmental Protection Agency would pause water system and hazardous waste site inspections, along with cleanup efforts. National parks and museums would close, clinical trials at the National Institutes of Health would be interrupted, and new federal housing or small business loan applications would be frozen. Nutrition programs would be among the hardest hit: WIC funding would quickly run dry, and food stamp payments could be delayed if the shutdown drags on.
The Internal Revenue Service is in limbo. Although the Inflation Reduction Act of 2022 provided the agency with special funding, past shutdowns saw the IRS furlough about 90% of its staff, paralyzing operations.
Federal Workers on the Line
The shutdown’s most direct impact would fall on federal workers. Essential employees — such as service members, TSA staff, and air traffic controllers — would be required to work without pay until funding is restored. Nonessential employees, including park rangers and many EPA staff, would be furloughed. In past shutdowns, all affected federal workers eventually received back pay, though only agencies not funded by Congress, like the U.S. Postal Service, continued paying staff throughout.
Political Stakes and Precedent
Neither party stands to benefit from a shutdown. The last one, from December 2018 to January 2019, was the longest in U.S. history at 35 days. Then, Republicans forced the lapse while holding the minority in the Senate and bore the brunt of public blame. With Democrats now in that position, they risk taking more political damage if a shutdown occurs.
The stakes are even higher now. The Trump administration has signaled plans to make some furloughs permanent if agencies close. An Office of Management and Budget memo urged agencies to “use this opportunity” to cut positions considered unnecessary, suggesting a shutdown could leave lasting marks on the federal workforce.
Navigating the Government Shutdown
The federal government shutdown will create significant challenges for businesses nationwide, from delayed SBA loans to halted federal contracts. These disruptions threaten growth, delay opportunities, and create uncertainty for business leaders and their communities.
In an effort to help our members better understand the possible consequences, we’re sharing updated resources that the U.S. Chamber of commerce had prepared during previous shutdowns.
Click here and here to view shutdown resources.
New Federal Push Would Designate Route 66 as a National Historic Trail
An Illinois congressman is renewing efforts to designate Route 66 as a National Historic Trail, a move supporters say would boost communities along the route while preserving the highway’s cultural legacy.
U.S. Rep. Darin LaHood, R-Peoria, has reintroduced the Route 66 National Historic Trail Designation Act. The bill aims to “expand economic and historic development opportunities for all communities and states along its route,” according to LaHood’s office.
This isn’t the first attempt to secure the designation. So what’s different now? LaHood first introduced the bill in 2017, where it stalled in the Senate Energy and Natural Resources Committee. Similar efforts followed, including a 2018 bill from U.S. Sen. Tom Udall, D-N.M., that also went nowhere. More recently, in 2023, U.S. Sen. Ted Cruz introduced legislation with bipartisan cosponsors such as U.S. Sen. Tammy Duckworth, D-Ill., while LaHood reintroduced his own version in the House.
The National Historic Trail designation would provide resources such as staff support, technical services, and economic development assistance to preserve the road. That’s especially significant because the Route 66 Corridor Preservation Program, which funded projects from 2001 to 2019, has not been reauthorized. Without it, towns along the highway — from Springfield to small communities across Illinois — have struggled to secure grants to revive historic landmarks and tourist spots.
Udall, in 2018, called the designation critical for protecting Route 66 as “the ‘Main Street of America’ for future generations of adventurers, migrants, hitchhikers, and tourists venturing westward.” Momentum could be built ahead of the Route 66 Centennial in 2026. Congress created the U.S. Route 66 Centennial Commission in 2020 to plan nationwide celebrations, legislation that Duckworth helped sponsor. Supporters hope the centennial spotlight, combined with renewed bipartisan interest, could finally push the trail designation across the finish line.
Tax Certainty Boosts Business Confidence Despite Tariff Jitters, Chase Executive Says
U.S. business owners are feeling more confident about their futures thanks to new clarity on tax policy, even as uncertainty over tariffs continues to hang over the economy, according to the head of JPMorgan Chase’s business banking division.
Ben Walter, CEO of Chase Business Banking, said the passage of the One Big Beautiful Bill Act gave entrepreneurs much-needed certainty about their tax obligations — a factor that has outweighed concerns about shifting trade policies. “People got certainty on the one thing that affects them every day, which is the tax stuff,” Walter told Crain’s during the bank’s annual business owner summit, held in Chicago for the first time last week. “People love to talk about the tariffs, and it makes big news. I’m not saying it isn’t disruptive, but for businesses, the uncertainty around taxes was a really big deal.”
Walter said Chicago is particularly well-suited for long-term growth because of its economic diversity. “Chicago has the advantage of being super diversified,” he said. “Detroit is a car town. Houston is an oil town. Los Angeles is a film town. Chicago is a town. No single industry makes up more than 13% of the economy.”
That mix, Walter added, could help the city benefit from Trump administration policies aimed at strengthening domestic manufacturing. “If you want to be bullish on Chicago, the reinvigoration of manufacturing in America could be a real boon. There are a lot of assets here that lend themselves to industrial revitalization.”
Despite lingering challenges in the labor market, Walter said most business owners remain upbeat. About three quarters report that their companies are performing well and expect continued growth. Finding skilled workers remains the top concern. “For all the talk about labor markets softening, I don’t hear small business owners saying, ‘Now I can get people whenever I need them,’” Walter said.
Even so, most entrepreneurs are still moving forward with investments and growth plans. Trade services like plumbing and electrical work are thriving, while technology and life sciences also remain strong performers. Supply chain issues that plagued businesses during and after the COVID-19 pandemic have largely eased, though companies often pay higher prices to secure what they need.
Not every sector is benefiting. Trucking continues to struggle with overcapacity and high maintenance costs, and food-related businesses face pressure from persistent inflation.
Walter noted a gap between how entrepreneurs view their own businesses and how they view the broader economy. Much of the pessimism, he said, stems from headlines about tariffs and trade battles rather than personal experience. “Business owners know their own bottom lines, and they tend to see the bright side,” Walter said. “You have to be a naturally optimistic person or you’d never do it. Risk-averse people work for other people. They don’t start their own companies.”
Pritzker Launches Governors Group as Illinois Lawmakers Clash Over Rising Energy Costs
Illinois Governor J.B. Pritzker is forming a coalition of governors to address concerns with PJM Interconnection, the regional grid operator that supplies power to much of the Midwest and Mid-Atlantic. The move comes as Illinois legislators debate new energy surcharges that could further increase customer bills.
Governor Pritzker’s office announced the creation of the PJM Governors Collaborative on Thursday, saying the goal is to give states a stronger voice in PJM’s decision-making process. The governor has been increasingly critical of the operator, accusing it of failing to keep up with Illinois’ rapid expansion of renewable energy.
“PJM is not doing a good job of adding all the renewable energy that we’ve added in the state,” Pritzker said earlier this week. “We’ve tripled the amount of renewable energy in the state from about 5% to almost 20% of electricity production.”
While Pritzker looks to hold PJM accountable, lawmakers in Springfield are weighing changes to state energy policy — including a proposal to add another surcharge to ratepayer bills. Critics warn that additional charges could burden both households and businesses.
During a House Executive Committee hearing Thursday, Rep. C.D. Davidsmeyer, R-Murrayville, argued that Illinois’ own policies — not PJM — are driving up costs. “Republicans have been excluded from all of these discussions, and our constituents have been negatively impacted by CEJA and other bills,” Davidsmeyer said, referring to the Climate and Equitable Jobs Act, which set Illinois on a path to phase out coal-fired power plants by 2045. “When we pretend like it’s PJM or MISO [Midcontinent Independent System Operator] increasing costs, it’s our current policies that pushed us in this direction.”
Supporters of Illinois’ clean energy push counter that higher costs are being driven by broader trends, including federal energy policies and rising demand from new technologies. “This is really, in light of what we’ve seen — a technology boom that for the first time in 40 years has increased demand for energy in an unprecedented way,” said Rep. Ann Williams, D-Chicago. “It’s a basic supply and demand challenge that we’re all facing.”
Business groups are voicing concern over adding new surcharges. Patrick Schweska of the Illinois Manufacturers’ Association warned that higher utility rates could harm competitiveness. “Our state already has among the highest industrial utility rates in the region,” Schweska said. “Adding another charge would put Illinois at a disadvantage compared to neighboring states that are aggressively attracting new investment.”
Governor Pritzker Signs Cryptocurrency Bills, Sparking Debate Over Regulation vs. Innovation
Illinois Governor J.B. Pritzker has signed two major cryptocurrency bills that supporters say strengthen consumer protections, but critics warn could push innovation and business out of the state.
The new laws take different approaches. Senate Bill 1797 establishes broad oversight of digital asset companies, requiring them to register with the state, provide clearer risk disclosures, safeguard customer funds, and adopt anti-fraud measures. “This bill delivers what families need most — confidence that when they use digital assets, their money and information are protected,” said State Sen. Sue Rezin, R-Morris. “It strikes the balance of protecting consumers while allowing responsible innovation.” Rezin noted that industry support for SB 1797 helped ensure the framework wasn’t overly burdensome.
By contrast, Senate Bill 2319 targets cryptocurrency ATMs found in gas stations and retail shops. It imposes daily transaction limits, refund requirements, and new disclosure rules. Rezin opposed the measure, saying it risks “micromanaging” one segment of the industry. “This bill really goes too far,” she said. “Someone trying to invest $2,000 at a kiosk could be blocked by the daily limit, while operators face steep compliance costs that could drive up fees.”
Critics also raised concerns about conflicts with potential federal regulations. “We asked to wait and see what the federal framework would be,” Rezin said. “But the bill was pushed forward anyway.” Despite her objections to SB 2319, Rezin said Illinois has an opportunity to position itself as a national leader if lawmakers strike the right balance. “Cryptocurrency is here to stay, and we need to balance consumer protection with allowing the industry to flourish,” she said.
For consumers, she urged caution: “Most people don’t understand the industry, including legislators. If you’re using a digital asset kiosk, make sure to do your research before you use it.”
Stay well,
Mike Paone
Executive Vice President
Joliet Region Chamber of Commerce & Industry
mpaone@jolietchamber.com
815.727.5371 main
815.727.5373 direct