Government Affairs Roundup
“Your Timely Roundup of Local, State, and Federal Updates”
Chamber members:
For the 11th time, legislation failed once again on Monday evening to reopen and fund the federal government. Only two other shutdowns have lasted longer than this one in the history of our country. Today marks the 22nd day of the shutdown with the record being 35 total days.
Lawmakers in both parties are grappling with growing pressure amid a stalemate that has brought Washington to a near standstill.
Last call is this Friday, the 24th for our October member luncheon. 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
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Shutdown Update
Congress remains far from a solution to end the shutdown, now stretching into its 22nd day, but pressure is mounting on both parties to find a way out. Senate Republicans are increasingly discussing the possibility of changing the filibuster to push a government funding bill through, while GOP leaders are trying to pressure Democrats to break ranks.
The Hill’s Al Weaver reports that Republican leadership has scheduled votes this week aimed at ensuring pay for military members and essential federal workers. The hope is that these measures will create divisions within the Democratic caucus. So far, the Democrats have remained largely unified in rejecting the House-passed continuing resolution (CR), with only three voting in favor.
Senate Majority Leader John Thune (R-S.D.) has reaffirmed his commitment to maintaining the 60-vote threshold needed to advance legislation. Still, chatter is growing about the GOP using the so-called “nuclear option” to overrule Democrats and reopen the government.
Reports are that while changing the filibuster was not discussed during former President Trump’s White House meeting with Republicans on Tuesday, GOP senators expect Trump may pressure Thune to act if the stalemate stretches into November.
Sen. Susan Collins (R-Maine), a key moderate, acknowledged that GOP senators are talking about filibuster reform. She said she supports keeping the 60-vote rule but is open to exploring any plan that could reopen the government.
Currently, Senate rules require 60 votes to advance most legislation, giving Democrats the ability to block the House-passed CR despite being in the minority. Republican leadership could propose a rule change to lower the threshold to a simple majority, eliminating the need for Democratic support.
Even some Democrats have signaled support for using the nuclear option in the current impasse. Sen. John Fetterman (D-Pa.) said he would back such a move to ensure programs like SNAP, which is running out of money, continue to receive funding. “There are no winners here. People are going to start to get really hungry,” he said, noting that U.S. Capitol Police officers are also not being paid.
Despite the pressure, touching the filibuster would be a drastic step and could set a lasting precedent for future budget battles. Thune told reporters earlier this week that eliminating the filibuster to reopen the government would be a “bad idea.”
Shutdown Future
With the shutdown edging closer to the House bill imposed Nov. 21 expiration date (which is becoming more and more irrelevant), Republicans acknowledge that the House-passed funding patch is likely no longer viable. But the party remains divided over how much more time to give themselves to finalize a plan for funding the government for a full fiscal year.
Some fiscal hard-liners, who generally oppose bills that raise spending levels, are advocating for a continuing resolution (CR) that could run until March—or even until the start of the next fiscal year, according to three Republicans who spoke on the condition of anonymity. In contrast, Senate Appropriations Chair Susan Collins has expressed strong opposition to a long-term CR, warning that it could jeopardize efforts to quickly secure fiscal 2026 funding, Jordain Carney and Meredith Lee Hill report.
Senate Majority Leader John Thune, when asked if he would support a CR lasting until next Oct. 1, said he favors “doing the appropriations process,” but acknowledged that Democrats “may not leave any alternatives” if negotiations continue to stall.
Sen. Markwayne Mullin, tapped by the White House to help lead bipartisan negotiations among rank-and-file Republicans, offered a bleak assessment Monday, noting that discussions are “not really happening” and that both sides are at an “impasse.”
If Republicans pursue a longer-term CR, they are considering a strategy to entice Democrats: a separate vote on extending Affordable Care Act (ACA) tax credits. GOP leaders are reportedly ramping up private discussions with senior party members and White House officials about what guardrails could make such an extension acceptable to conservatives once the government reopens. There is widespread recognition that letting the subsidies expire could create significant political headaches heading into an election year—and that Democrats may refuse to vote to end the shutdown without some ACA concession.
One idea under consideration is advancing a year-end health care policy package that pairs GOP wish list items with a two-year extension of scaled-back ACA subsidies, then bundling that package with full-year spending bills. But moving such a plan through the House could prove difficult for Speaker Mike Johnson, who may struggle to persuade enough members to accept any form of an Obamacare extension.
Still, some conservatives, like Rep. Chip Roy, remain cautiously optimistic. Success may hinge on how quickly ACA credits are phased out and whether the GOP can secure policy victories, such as promoting the use of tax-free Health Savings Accounts. “If we have health care reforms on the table that protect and provide greater freedom and independence for patients and doctors, then I’m on board with things that would help build a package,” Roy said.
GOP Leaders Explore Potential Obamacare Extension
Republican leaders on Capitol Hill are quietly ramping up discussions within senior party ranks and with White House officials about a potential extension of key Affordable Care Act (ACA) insurance subsidies before the end of the year, according to three people granted anonymity to describe the conversations.
One option under serious consideration is attaching a revamped subsidy framework to either a small bipartisan package of full-year funding bills or a long-term stopgap that would run through early next year once the government shutdown ends. GOP leaders have been encouraged as some of the party’s most conservative members show tentative openness to a deal—though only under strict conditions.
Key Republicans have floated ways to curb the subsidies without eliminating them entirely when they expire on Dec. 31. Ideas under discussion include imposing an income cap for beneficiaries, requiring some individuals to pay a minimum out-of-pocket premium, or grandfathering current enrollees while blocking new enrollment.
The expiring subsidies are central to Democrats’ shutdown demands, meaning any extension will require a bipartisan deal to pass Congress. Publicly, GOP leaders insist they will only negotiate a deal after Democrats agree to reopen the government. Still, the fact that leaders are sketching out potential frameworks and legislative paths is notable.
One approach under early consideration is pairing a two-year extension of scaled-back subsidies with other conservative health care provisions and attaching the package to stalled annual spending bills. House Majority Leader Steve Scalise has publicly advocated adding provisions likely to build conservative support, such as expanding association health plans and promoting tax-free Health Savings Accounts.
Senate Majority Leader John Thune has also signaled that any extension should include new restrictions on subsidies and potentially other conservative health measures. White House officials are involved in shaping the potential extension and identifying which GOP priorities could be included alongside it.
Building support among House Republicans is a major hurdle. Many conservatives oppose any ACA extension outright, but some hard-liners have begun signaling openness—if the deal includes significant policy changes. Former President Trump has expressed willingness to negotiate a broader health care package once the shutdown ends, adding momentum to the discussions.
Rep. Andy Harris (R-Md.), chair of the House Freedom Caucus, said leadership could attach a health care package to funding bills but prefers a standalone measure to keep spending bills “as clean as possible.” Harris emphasized that his support would hinge on the full package and that ACA credits should ultimately sunset.
Even with internal divisions, some conservatives are sounding cautiously optimistic. Rep. Chip Roy (R-Texas), also of the Freedom Caucus, said he is open to building a package that protects patient and doctor freedom while phasing out expanded subsidies. Roy highlighted conservative priorities such as direct primary care and Health Savings Accounts. “You wrap that in then with whatever it takes to get the votes,” Roy said. “I’m always open to that.”
While some Democrats are warming to income caps and other subsidy restrictions, it remains unclear if they would accept a full phase-out or GOP policy additions, meaning finding common ground could remain extremely difficult. For now, the discussions signal that both sides are quietly laying the groundwork for a potential deal once the shutdown ends.
Defense Spending Bill Fails as Shutdown Tensions Escalate
The Senate voted 50-44 against advancing the $852 billion Defense spending bill last Wednesday, falling short of the 60 votes needed. Senate Democratic Leader Chuck Schumer (D-N.Y.) objected to considering the measure without also voting on the annual Labor, Health and Human Services (LHHS) appropriations bill.
“It’s always been unacceptable to Democrats to do the Defense bill without other bills that have so many things that are important to the American people in terms of health care, in terms of housing, in terms of safety,” Schumer told reporters ahead of the vote.
Three centrist Democrats—Sens. Catherine Cortez Masto (Nev.), John Fetterman (Pa.), and Jeanne Shaheen (D-N.H.)—broke ranks to vote to advance the measure. Cortez Masto and Fetterman previously supported a House-passed bill to reopen the government, while Shaheen has been central to bipartisan talks aimed at ending the shutdown.
Several centrist Democrats hesitated to advance the Defense bill while awaiting clarification on whether it would be paired with other non-defense appropriations. “I’m still trying to determine what the plan is. If the plan is to bring forth as a substitute the Senate [Defense] bill and the Labor [Health and Human Services] bill, then yes. If the plan is to simply run [the Defense bill] by itself, then the answer is no,” said Sen. Angus King (Maine), an independent who caucuses with Democrats.
Sen. Mark Warner (D-Va.) echoed the uncertainty, noting he would wait to see how the Defense bill would be packaged before deciding how to vote.
Senate Majority Leader John Thune (R-S.D.) framed the vote as an effort to ensure more than a million military service members receive paychecks amid the shutdown. “If we can’t reopen the entire government, we can at least make some progress toward securing paychecks for our troops and for defending our country,” Thune said on the Senate floor.
Thune’s move came as a surprise to Democrats, who had been negotiating broader shutdown solutions. Over the weekend, President Trump said he directed Secretary of Defense Pete Hegseth to use “all available funds” to pay military personnel during the shutdown, though senators from both parties said they lacked details on what funds are being tapped or the legal authority for such action.
The Defense appropriations bill passed out of committee in July with strong bipartisan support, 26-3. Wednesday’s vote followed an earlier defeat of a House-passed continuing resolution to fund the government through Nov. 21—the tenth time Senate Democrats blocked that measure.
Thune’s strategy highlights the growing tensions as Congress struggles to navigate funding priorities amid the ongoing shutdown, balancing the need to pay troops with broader Democratic demands on health, housing, and other non-defense programs.
Illinois Veto Session Update
The House and Senate returned to Springfield last Tuesday to kick off the veto session. The House was in for all three days, while the Senate canceled Thursday’s action in a week that was ultimately pretty quiet.
Throughout the week, both the House and Senate held just a few limited hearings with topics of note highlighted below. There was limited floor action in either chamber aside from speeches, resolutions, and movement of bills to Third Reading. On Wednesday, most of the time on the floor of the House was dedicated to resolutions related to federal administrative actions. In both chambers, there was also time spent in caucus.
SB 246, which was vetoed by Governor Pritzker, was placed on the Senate Calendar.
Both chambers will return to Springfield for the second week of veto session October 28th-30th.
Energy Omnibus Update
The first week of Veto Session allowed for continued negotiations on an Energy Omnibus bill that has been in the making since the spring. The legislation, at this time, contains several major pieces that will require consensus amongst several key stakeholder groups, including organized labor and the environmental community, in addition to industry. At this time, there is a possibility that a package will come together, however, it is too early to tell if both chambers will approve a package.
Among the provisions included:
- battery energy storage
- geothermal energy development
- transmission support
- changes to energy efficiency and procurement standards
- data center regulations
- resource adequacy and resource planning provisions
Mass Transit Reform & Funding Negotiations
Last Wednesday, the Regional Transportation Authority (RTA), the Chicago Metropolitan Agency for Planning (CMAP), and labor representatives testified before the House Executive Committee on mass transit funding. The hearing marked the first formal discussion on transit in the General Assembly since the end of the Spring Session.
The RTA and CMAP presented updated revenue forecasts for 2026 and beyond, highlighting the short-term reduction of the Chicagoland mass transit fiscal cliff to roughly $200 million. The deficit reduction, its underlying causes, and RTA communications were central topics during the 2.5-hour hearing.
As noted during the Ad Hoc Committee on Transit Funding, the RTA’s deficit has declined due to several factors: increased revenue from sales tax changes on online purchases, a 10% fare increase, operational efficiencies, and the use of reserves. However, officials warned that the deficit is projected to rise above $700 million in 2027 and will continue to grow in subsequent years.
While the short-term decrease in the deficit was welcomed, the hearing became contentious at times. Several legislators criticized the RTA’s communications with constituents and stakeholders, as well as a perceived lack of proactive measures to address funding challenges.
About an hour into the hearing, Rep. Maurice West expressed reservations about supporting a mass transit funding bill, noting that he would need to address constituent concerns about a potential “transit authority bailout” resulting from alleged mismanagement of funds, with little apparent benefit for his district. RTA representatives largely attributed the fiscal challenges to pandemic-era shifts in ridership and long-term structural funding issues.
Leader Buckner also raised concerns regarding the “Save Transit Now” campaign and the use of operating funds for advertising purchases.
Following the RTA’s testimony, CMAP Executive Director Erin Aleman presented an independent analysis of the fiscal cliff, along with potential funding methods for addressing long-term transit needs.
No new legislative language has been filed, and no significant movement on transit occurred outside of the hearing. However, during remarks at the Economic Club of Chicago earlier this week, Governor Pritzker signaled his intention to push for a transit funding bill during the upcoming veto session. “I think we’re going to have to make it happen soon. I’m hoping that it will happen. And I’m, you know, asking the legislature that they do it during the veto session,” he said.
Mass transit reform and long-term funding remain one of the major legislative priorities as the General Assembly navigates the veto session.
Revenue Omnibus Proposal Update
No major developments occurred on the tax front during the first week of Veto, however, the issue will likely be the source of legislative focus next week. Among the key issues to be on the lookout for (and issues that were outlined in the Governor’s Office of Management and Budget’s October Economic and Fiscal Policy Report) include possible changes to Illinois state law that seek to decouple from provisions contained in the One Big Beautiful Bill, modifications to provisions contained in the FY26 revenue omnibus, such as those related to GILTI taxation, and other outstanding legislative proposals related to property taxes in Cook County, economic development incentives for “Mega Projects,” and others.
Provisions that we are likely to see some action on:
- GILTI: As previously reported, the OBBB federally eliminated global intangible low-taxed income. The Governor’s Office will likely be seeking trailer legislation that modifies the Illinois Income Tax Act to now reflect the newly designated Net Controlled Foreign Corporate (Net CFC) Tested Income.
- Decoupling Provisions: There are several provisions under the federal H.R. 1 piece of legislation that passed this summer created new or enhanced federal corporate tax relief for corporations. The state of Illinois is a rolling conformity state, which means that most of the newly created or enhanced provisions of the OBBB apply to the state tax code, unless the State chooses to decouple from these provisions. Among the major pieces of the federal legislation that the Governor’s Office will likely try to decouple from include the 100% bonus depreciation for certain newly constructed production property, certain R&D expansions, and interest deduction (under Section 163(j)), and Sec 179 expensing for small businesses.
- Mega Projects: There has been some discussion about the need for Illinois to pursue a Mega Projects economic development incentive. Under models, such as HB 4058 (Hoffman), a “Megaproject” would be entitled to certain sales tax exemptions (on building materials), a limited “property tax assessment freeze” for the duration of the incentive period. In order to be eligible for the megaproject designation, a taxpayer must invest at least $100 million, enter into an agreement with a local municipality and related taxing bodies, enter into a PLA on the demolition, construction, or building renovation, meet minority contracting goals, create at least 100 full-time jobs, and entered into an Agreement with the Department. Requires the megaproject to be operated for at least 20 years and be subject to an LPA. Prohibits professional sports stadiums from utilizing the incentive unless the General Assembly approves the project through Joint Resolution.
- Other Items: The Illinois Chamber has been working with other partner business groups on making sure that the pass-through entity SALT tax workaround is extended here in Illinois; and there has been some discussion about possible PTAX legislation (covering largely Cook County property taxes).
Illinois DCEO Announces Three Grant Program Deadlines
Tourism Attraction Grant Program
Tourism attractions can apply for grants ranging from $15,000-$200,000 offered by the Illinois Department of Commerce & Economic Opportunity (DCEO). Visit the DCEO website for more information about applying, including video training and other helpful resources to complete your application. Deadline to apply is Nov. 3 at 5 p.m.
Tourism Private Sector Grant Program
Tourism organizations and businesses in the private sector can apply for DCEO grants ranging from $10,000-$50,000. Visit the DCEO website for more information about applying, including video training and other helpful resources to complete your application. Deadline to apply is Nov. 3 at 5 p.m.
Marketing Partnership Program
The DCEO’s Marketing Partnership Program offers marketing grants ranging from $10k,000-$100,000. Visit the DCEO website for more information about applying, including video training and other helpful resources to complete your application. Deadline to apply is Nov. 3 at 5 p.m.
Stay well,
Mike Paone
Executive Vice President
Joliet Region Chamber of Commerce & Industry
mpaone@jolietchamber.com
815.727.5371 main
815.727.5373 direct