Government Affairs Roundup
“Your Timely Roundup of Local, State, and Federal Updates”
Chamber members:
Thanks to Will County Executive Jennifer Bertino-Tarrant for sharing her “State of the County” address with us today at our October luncheon. It is always good to hear the progress in our region.
The U.S. Senate on Tuesday failed to reopen the federal government for the 13th time, as the shutdown hit the four-week mark, now at 29 days. Supplemental Nutrition Assistance Program (SNAP) benefits are days away from running out, and the largest federal worker union has called for a deal. Meanwhile, one GOP senator is floating a plan to pay furloughed and essential workers.
Here in Illinois the second half of the veto session is underway. Much more news below for your reading pleasure.
*Government Affairs Roundup brought to you by CITGO*
Shutdown Update
Democratic and Republican strategists alike agree that the ongoing government shutdown — set to hit the 30-day mark tomorrow — has become a growing liability for both parties. That pressure could soon push congressional leaders to search for an off-ramp to end the stalemate.
Starting November 1, more than 40 million Americans could lose access to SNAP benefits, troops may miss their next paychecks, and millions will face steep premium hikes as they shop for Affordable Care Act plans. The nation’s air travel system is also under increasing strain, with understaffing causing widespread delays over the weekend.
The most promising — though still unlikely — path forward appears to be a potential compromise to pay federal workers and active-duty military personnel. Democrats rejected a proposal from Sen. Ron Johnson (R-Wis.), but he and Sen. Chris Van Hollen (D-Md.) have since begun discussions on possible common ground.
“Something is going to have to come from the rank and file,” Senate Minority Whip John Thune said last week, dismissing Democratic hopes that Trump might intervene to broker a deal.
So far, Democrats remain firm: they won’t negotiate until Republicans agree to extend enhanced ACA subsidies past the end of the year. “Right now both sides think they are winning — and that’s not fertile ground for any kind of change,” said Sen. Thom Tillis (R-N.C.). “We’ll see once the next set of paychecks go unpaid whether pressure builds.”
During the GOP conference lunch, leaders will hear from different factions before deciding whether to allow votes on “rifle-shot” funding bills — narrow measures to fund select government programs even as the broader shutdown continues.
Sen. Ted Cruz (R-Texas) has proposed legislation to pay air traffic controllers and TSA agents, while Sen. Josh Hawley (R-Mo.) has introduced a bill to prevent millions from losing food aid when SNAP funds run out this Saturday. Still, Sen. Markwayne Mullin (R-Okla.) said there’s “not a lot” of appetite among Republicans for piecemeal votes, citing a desire within the GOP to maintain pressure on Democrats.
Also on the agenda: GOP appropriators plan to discuss how to move full-year funding bills once the shutdown ends — and whether the White House will honor bipartisan spending agreements or continue to claw back approved funds, according to Sen. Mike Rounds (R-S.D.).
Meanwhile, Senate Democrats will hold their own closed-door lunch — their first caucus-wide meeting since the American Federation of Government Employees (AFGE), the largest federal employee union, urged them Monday to “stand down” and pass a clean continuing resolution.
Democratic leaders have shown no signs of backing off, with many insisting they’ll hold firm until Republicans agree to a bipartisan deal to reopen the government. “The AFGE wouldn’t want us to cut a deal and then have Trump fire a bunch of people next week,” Sen. Tim Kaine (D-Va.) said. “If we did that, they’d be the first to ask, ‘What were you thinking?’”
Still, the union’s strong statement has put Democrats on the defensive for the first time since the shutdown began, exposing internal tensions. “It has a lot of impact,” said Senate Majority Whip Dick Durbin (D-Ill.). “They’ve been our friends.”
Labor Union Urges Congress to Pass GOP Funding Bill, Reopen Government
As the government shutdown entered its 27th day, the largest federal employee union called on the U.S. Senate to pass the Republican-backed stopgap funding bill to reopen the government.
The American Federation of Government Employees (AFGE), which represents more than 820,000 federal workers, had previously issued only broad appeals for Congress to end the stalemate. According to OpenSecrets, over 95% of AFGE’s political donations have historically gone to Democratic federal candidates.
In a statement Monday, AFGE National President Everett Kelley specifically urged lawmakers to advance the House-passed Continuing Resolution to restore government operations. Kelley said, “both political parties have made their point” and that “there is no ‘winning’ a government shutdown.”
“It’s time for our leaders to focus on solving problems for the American people, rather than arguing over who deserves the blame for a shutdown no one wants,” Kelley said. “Reopen the government immediately under a clean continuing resolution that allows continued debate on larger issues.”
Proposal for Paying All Federal Workers During Shutdown
Sen. Ron Johnson (R-Wis.), the lead Republican negotiator on efforts to pay key federal employees during the ongoing government shutdown, says he has offered Democrats a proposal to pay both essential and furloughed workers while federal departments and agencies remain closed.
Johnson told The Hill that he believes Senate GOP leadership supports his proposal, which will be discussed in more detail at Tuesday’s weekly Senate Republican policy luncheon.
Under Johnson’s plan, all federal employees would receive paychecks up front, rather than waiting for the shutdown to end. He noted that furloughed workers are already guaranteed back pay under the Government Employee Fair Treatment Act of 2019, making his proposal a practical step toward easing financial strain on federal families.
“Pay them up front — they’re going to get paid anyway,” Johnson said, calling the inclusion of furloughed workers a “big concession.” The Wisconsin senator urged Democratic colleagues to accept the offer. “Are they going to take ‘yes’ for an answer?” he said, emphasizing his hope for bipartisan support. “We need to put that vote on the floor, get it approved by the White House and our leadership,” he added. “Hopefully that will be the conference position, and we’ll start voting on this stuff.”
Veto Session Update
Despite a recent push by U.S. House minority leader Hakeem Jeffries, a Congressional remap in Illinois looks like a long shot. Leaders of the Illinois House and Senate, which would need to approve new maps today or tomorrow during the last days of the fall veto session, say it’s not happening this week. However, a special legislative session could be called if the decision is made to move forward. Members of the House Democratic caucus “want to know more” about why state lawmakers should consider redrawing congressional maps.
Reports are saying the labor and the environmental lobby groups have unified behind the Clean and Reliable Grid Affordability Act, clearing a major roadblock to the state legislation, according to a person close to the negotiations. Language is drafted, and lawmakers could vote on the energy bill this week. See more below.
The state is looking to build on the progress made four years ago when the Climate and Equitable Jobs Act was signed into law. If the latest energy bill passes the Legislature this week, Illinois would be the first state to take climate action since the Trump was sworn in to a second term and rolled back the Inflation Reduction Act, which made substantial investments in clean energy.
Much talk over the last number of months is about Illinois consumers facing electricity price spikes due to a supply crunch and unprecedented demand from new data centers that weren’t around in 2021 when CEJA passed.
Additionally, news broke last night that a mass transit funding plan has been put tougher by House Democrat members that varies considerably from a plan passed by the Senate back in the spring. See more below.
A new topic of interest emerged based around horse racing. Senate Bill 1473 aims to revive the state’s horse racing industry and could receive a vote this week. It would allow for a track and casino in southwestern Cook County and a racino with 900 gaming positions in Decatur. Hawthorne Racecourse would lose veto power over a suburban track but would be allowed to operate 300 video gaming terminals in the interim as a concession.
Energy Omnibus Update
After months of negotiations among industry leaders, organized labor, and environmental advocates, House Democrats have released the latest version of the comprehensive “Energy Omnibus” bill — a sweeping, several-hundred-page proposal that would significantly reshape Illinois energy policy.
The legislation centers on expanding the State’s investment in clean and renewable energy technologies, including battery energy storage, wind and solar integration, geothermal systems, virtual power plant networks, and new pricing and procurement models to support long-term sustainability. It also builds upon CEJA’s workforce development initiatives, placing renewed emphasis on minority-owned and small business participation and economic relief for disadvantaged communities.
While the bill seeks to accelerate Illinois’ transition toward clean energy, it also includes several rate increases that would impact both taxpayers and businesses. These include higher energy transition charges and new tariffs to fund emerging technologies.
The Energy Omnibus bill makes broad changes to Illinois’ energy and environmental laws.
Major highlights include:
Energy Storage and Emerging Technologies
- Establishes a goal of 3,000 MW of new energy storage capacity, with the State empowered to create energy storage portfolio standards.
- Introduces preferential property tax treatment for commercial storage systems and new siting and governance rules under the Illinois Commerce Commission (ICC).
- Launches new initiatives such as the Illinois Storage for All Program and programs supporting geothermal and virtual power plant (VPP) development.
Utility Oversight and Planning
- Expands oversight of electric utilities to include data reporting, procurement, energy efficiency, demand response, and clean energy targets.
- Requires Integrated Resource Planning (IRP) to align utility operations with State policy goals.
- Grants the ICC and other agencies expanded authority to modify rates and programs — including the ability to make certain changes without legislative approval.
Rate Impacts
- Increases the Energy Transition Assistance Charge and other tariffs tied to new technology development.
- Anticipates higher costs for commercial and industrial customers to support investments in storage, geothermal, and renewable energy programs.
Nuclear Energy and Safety
- Authorizes the development of new nuclear facilities in Illinois.
- Updates and revises fees and safety provisions associated with nuclear oversight.
Electric Vehicles and Transportation
- Expands state funding for electric vehicle (EV) infrastructure, including transportation electrification grants and transmission system improvements such as high-voltage direct current (HVDC) lines.
- Encourages state-level investment in EV and energy storage innovation.
Labor and Equity Provisions
- Reinforces requirements for minority-owned business participation and union labor, including prevailing wage and project labor agreement (PLA/LPA) mandates across various programs.
Task Forces and Studies
The bill establishes several new study groups and working bodies, including:
- Interconnection Working Group to examine grid reliability and access.
- Energy Reliability Corporation of Illinois study on potential creation of a state ISO, consolidation into a single RTO (MISO or PJM), or maintaining the current structure.
- Thermal Energy Network Revolving Loan and Financial Assistance Program (jointly managed by the ICC and Illinois Finance Authority).
- Geothermal Homes and Business Program to promote adoption of geothermal systems.
- Powering Up Illinois initiative to assess utilities’ ability to meet growing statewide energy demand.
As energy demand continues to surge, Illinois faces the dual challenge of meeting ambitious clean energy goals while ensuring reliable, affordable power for residents and businesses.
You can read a full overview of the proposal here from the Illinois Chamber.
Transit Funding Bill Emerges as Lawmakers Race Toward Deadline
Illinois lawmakers are considering a sweeping new plan to raise more than $1.5 billion annually for mass transit through a series of new taxes on billionaires, concert and sporting event tickets, and digital streaming services such as Netflix.
Transit advocates argue the funding is essential to prevent major service cuts when federal COVID-19 relief dollars expire next year — and to make long-term improvements to the region’s transportation network while extending support to downstate systems.
The proposal, unveiled by House Democrats, marks a significant departure from the Senate plan approved in May but never taken up by the House. With just days left before the veto session ends Oct. 30, supporters face a tight window to secure passage in both chambers amid new waves of opposition from business and entertainment groups.
State Rep. Kam Buckner (D-Chicago), one of the lead House negotiators, said the proposal would generate between $1.5 billion and $1.8 billion annually through a mix of measures:
- A 4.95% “billionaires’ tax” on unrealized investment gains,
- A 7% statewide amusement tax on streaming, sports, and concert tickets, and
- A $5 surcharge on tickets for large events, which would double as a day pass for public transit.
“Whatever we do has to be balanced,” Buckner said. “It can’t pick winners and losers — it has to be doable.” Buckner expressed confidence the package can pass the House, noting that its components have been carefully vetted among Democrats to ensure sufficient support.
The entertainment industry is already pushing back. Sports teams, concert promoters, and venue operators have dispatched lobbyists to Springfield, warning that the 7% amusement tax and $5 event surcharge would drive up costs and discourage attendance. The surcharge would take effect one year after enactment and apply to events at venues with capacities of 10,000 or more.
Meanwhile, lawmakers have ruled out several funding ideas from the Senate’s version, including a $1.50 delivery fee on online purchases. Buckner said House Democrats viewed that approach as overly regressive.
“Say what you want about an amusement tax, but you’re not paying it every day,” Buckner said. “There are people who might pay a delivery fee three or four times a week.” Labor leaders echoed that concern. Marc Poulos, political director for the International Union of Operating Engineers Local 150, called the delivery fee “a very regressive tax.”
“Single mothers working two jobs don’t have a choice but to get deliveries. Seniors who can’t drive need deliveries,” Poulos said. “But someone buying a $250 concert ticket — that’s a more progressive tax.” Poulos also rejected a proposed tollway surcharge for transit funding, saying trade unions view that revenue as reserved for highway improvements.
It remains unclear whether the labor coalition that backed the Senate’s transit overhaul will fully support the new package. Bob Reiter, president of the Chicago Federation of Labor, said his team was still reviewing the House bill, which was posted late in the evening. Labor helped shepherd the earlier Senate bill to passage in that chamber.
Chicago’s position is also uncertain. The proposed state amusement tax would be stacked on top of existing city and county levies — potentially pushing total taxes on streaming services in Chicago to 19% and on concert tickets to 17.5%. “Isn’t the city of Chicago and the mayor going to say, ‘Take your hand out of our cookie jar?’” Poulos said, noting the city has long relied on those revenues. The mayor’s office did not respond to a request for comment.
In addition to new funding sources, the House plan retains many governance reforms from the Senate version. Both chambers agree that the Regional Transit Authority (RTA) should be replaced with a 20-member Northern Illinois Transit Authority (NITA) to oversee the CTA, Metra, and Pace.
Under the proposed structure:
- The governor, mayor of Chicago, and Cook County board president would each appoint five members.
- The remaining five would be appointed collectively by the board presidents of DuPage, Kane, Lake, McHenry, and Will counties.
The new board would wield greater authority over budgets and service coordination, with the goal of creating a more integrated and efficient transit network.
The House bill also includes the following governance adjustments:
- Board stipends would drop from $25,000 to $15,000 per year.
- The supermajority requirement for major decisions would fall from 15 directors (Senate bill) to 12, provided at least two members from each appointing authority are included. This change aims to reassure suburban lawmakers that Chicago, Cook County, and the governor cannot dominate board decisions.
- Current board members’ terms would expire July 1, 2026.
Transit agencies warn that without new state funding, they will face steep service cuts once federal relief expires. The RTA recently revised its projected 2026 shortfall down from $771 million to $202 million, citing stronger sales tax revenue, a 10% fare increase, and the use of reserves.
However, the fiscal gap is expected to climb again — to $789 million in 2027 and $888 million in 2028 — without additional state support. Some negotiators expressed frustration with the revised figures, fearing the improved short-term outlook could reduce the sense of urgency to act before year’s end.
House Democrats plan to push their version of the transit funding package through committee this week, with negotiations ongoing among labor, local governments, and industry groups. Whether the House and Senate can reconcile their competing visions — and secure enough support from both urban and suburban lawmakers — remains to be seen before the Oct. 30 veto session deadline.
Affordable Care Act (ACA) “Sticker Shock” Hits as Open Enrollment Begins
As Congress races toward a critical deadline for extending enhanced ACA subsidies, millions of Americans are bracing for sharp premium increases. With the government shutdown blocking action, it may already be too late for many to avoid “sticker shock” as open-enrollment season gets underway.
Health insurance premiums for Illinois families buying coverage through the Affordable Care Act (ACA) are projected to rise about 78% next year—from an average of $260 to $464 per month—driven by federal cuts, including the potential expiration of the enhanced premium tax credits at the heart of the current shutdown. Combined with the end of Covid-era ACA tax credits, some consumers could see costs double or triple.
Illinois officials note that the state-run marketplace launching this year, Get Covered Illinois, will offer more flexibility than the federal system, potentially helping residents find more affordable coverage despite higher premiums.
According to Illinois Department of Insurance Director Ann Gillespie, several factors are driving the increase: tariffs, inflation, a rising uninsured rate, and the removal of expanded premium tax credits. “Congressional actions and past federal policies have created this spike,” Gillespie said, noting that the federal HR 1 budget bill would allow Biden-era premium tax credit expansions to expire.
In 2025, 91% of Illinois ACA enrollees received these tax credits, many of whom could lose coverage if the subsidies are not extended. While Illinois saw a 17% increase in ACA enrollment last year, the Congressional Budget Office projects that cutting the tax credits could reduce enrollment by 30% to 50% this year.
Get Covered Illinois is preparing to mitigate the impact. “We have 15,000 licensed insurance brokers and several navigator groups working to help enrollees find affordable plans,” said Morgan Winters, director of the marketplace. Although fewer insurers offer ACA plans, the state marketplace will feature about 1,100 options.
Sabrina Corlette, co-director of the Center on Health Insurance Reforms at Georgetown University, cautioned that launching a new marketplace amid steep premium hikes is challenging. “It’s got Illinois’ name on it, but the increases aren’t Illinois’ fault. It’s like launching a ship into uncharted waters,” she said.
An advantage, however, is that Illinois enrollees will see premium increases earlier than federal marketplace users, who likely won’t receive notices until mid-December.
Negotiations in Washington show no sign of progress. Democrats demand renewal of the enhanced subsidies, while Republicans insist any discussion on health care must wait until after the government reopens.
If the enhanced credits expire, the ACA’s original subsidies remain—but only for individuals earning up to 400% of the federal poverty level ($62,000 for an individual, $128,000 for a family of four). Enhanced subsidies remove this cap, keeping premiums below 8.5% of annual income, making them especially valuable to higher-income households and small business owners. Without the enhanced credits, many of these consumers would lose financial support.
The Congressional Budget Office estimates nearly 4 million fewer people will have marketplace coverage over the next decade if the extra subsidies expire.
Even if Congress reaches a deal ahead of November 1, integrating new or restored subsidies into premiums is complex. Jessica Altman, executive director of Covered California, warned that late changes would be burdensome: “The later it is, and the more different from today’s structure, the messier and slower it will be for marketplaces and consumers.” Jeanne Lambrew, former Obama administration health adviser, added: “We’re past the point where major changes to the premium tax credits could be implemented for Jan. 1.”
The Department of Health and Human Services has not specified how quickly changes could be implemented at Healthcare.gov if a deal is reached after November 1, or whether consumer outreach would occur.
Window shopping for coverage has already begun in most of the 22 states that operate their own exchanges. The federal marketplace website, Healthcare.gov, will display plan prices next week.
The Washington Post reports that premiums for roughly 17 million Americans using the federal marketplace are expected to rise by an average of 30%. Insurers cite the expiring subsidies as a reason, anticipating healthier people may drop coverage, leaving sicker, costlier enrollees. Without enhanced credits, the average marketplace consumer will pay $1,904 annually next year, according to KFF.
Congress could theoretically pass a “clean” extension of the subsidies for 2026, deferring any policy changes to 2027, but support is uncertain. Republicans are divided—some prioritize negotiations after the government reopens, while others prefer letting subsidies expire. GOP proposals include capping income eligibility, requiring minimum premium payments, or ending subsidies for new enrollees while grandfathering current recipients.
Senate Majority Leader John Thune (R-S.D.) criticized the current subsidies for lacking an income limit and enabling “zero-premium” policies, arguing they benefit insurance companies through auto-enrollment practices. Republicans have also floated preventing subsidies from funding elective abortions, a move Democrats call a nonstarter.
With the shutdown now the second longest in U.S. history, the likelihood of resolving the subsidy issue before open enrollment remains low. State officials and health experts warn that delays will only make any eventual changes more difficult to implement, leaving millions of Americans facing higher premiums and uncertainty in the year ahead.
Illinois SNAP Benefits at Risk Amid Federal Shutdown
Illinois residents could stop receiving food assistance starting November 1 if the federal government remains closed.
The U.S. Department of Agriculture (USDA) has informed states that it will not fund the Supplemental Nutrition Assistance Program (SNAP) unless the government reopens, according to an Oct. 16 press release from the Illinois Department of Human Services, which administers the program in the state.
SNAP provides low-income families with food benefits to supplement their grocery budgets and ensure access to nutritious food. About 1.9 million people in Illinois rely on the program, which is 100% federally funded, costing more than $350 million per month. Illinois does not have the authority to continue funding SNAP on its own. Nationwide, roughly 42 million people participate in SNAP.
Governor Pritzker sharply criticized Congressional Republicans and the Trump administration for withholding funding. “Working families across Illinois are about to go without food assistance because Trump and Congressional Republicans want to score political points and refuse to reopen the federal government,” he said.
Pritzker added, “Why is it that they can find the money during a shutdown to pay masked federal agents wreaking havoc in our communities but not help people put food on the table?” He also emphasized, “One child going hungry in America is one too many. The Trump Administration and Congressional Republicans need to do their job and start delivering for the American people.”
Illinois has joined 24 other states and the District of Columbia in suing the Trump administration over its plan to halt SNAP benefits. The lawsuit argues that the USDA has access to contingency funds appropriated by Congress for emergencies like a shutdown and can continue funding SNAP. “At a time of increased costs for families, the Trump administration is making a deliberate, illegal and cruel decision to cut off access to food for nearly 2 million Illinoisans,” said Attorney General Kwame Raoul.
Although SNAP food aid has never lapsed during a shutdown in modern history, a recent memo from the Trump administration concluded it cannot use contingency funds or other nutrition programs to cover the $9 billion in monthly benefits.
U.S. Senators are exploring ways to ease the impact of the shutdown. Sen. Josh Hawley indicated he might seek unanimous consent on a bill to fund SNAP for the duration of the shutdown. Meanwhile, Gov. Pritzker said Illinois is looking at ways to support residents affected by the program’s pause, though options are limited given federal funding rules.
The Trump administration’s decision to continue paying certain federal employees while programs like SNAP are halted has sparked criticism from Democrats. Trump announced that a private donation of $130 million from Timothy Mellon would fund military pay during the shutdown.
It remains unclear when Congress will return to session. The shutdown could become the longest in U.S. history if it extends beyond Nov. 4, surpassing a record set during Trump’s first term in 2018.
House Republicans Call for Caution as HUD Moves to Cut Homeless Housing Funding
House Republicans are urging the Trump administration to carefully reconsider planned cuts to a key Department of Housing and Urban Development (HUD) program that provides permanent housing for people experiencing homelessness. The call comes as the White House prepares significant changes to the program, which could put hundreds of thousands at risk.
In a draft letter obtained by POLITICO, more than 20 House Republicans, led by Long Island Representatives Andrew Garbarino (R-N.Y.) and Nick LaLota (R-N.Y.), warned that HUD’s proposed changes “should be implemented carefully to avoid destabilizing programs that serve individuals with severe disabilities, chronic health conditions, substance use disorders, or seniors with disabilities.”
The lawmakers urged HUD Secretary Scott Turner to extend all existing grants expiring in 2026 under the agency’s Continuum of Care (CoC) program for an additional year. They stressed that such an extension is “essential to prevent service disruptions for individuals and families experiencing homelessness, sustain continuity of care for vulnerable populations, and allow HUD adequate time to implement its next generation of homelessness policy reforms.”
POLITICO previously reported that HUD was preparing to cap funding for permanent housing within the CoC program and shift resources toward transitional housing programs, which would include work or service requirements. Internal HUD documents and agency employees estimated that the proposed move could put roughly 170,000 people at risk of homelessness.
The funding cap was expected to be introduced via a Notice of Funding Opportunity in the fall, though the ongoing government shutdown has delayed the notice.
“The Department of Housing and Urban Development’s Continuum of Care grant is vital for communities to address homelessness and keep families safe and housed across the U.S.,” Garbarino said in a statement. “I am proud to lead this letter with Rep. LaLota and 20 Republican colleagues to request that HUD honor its two-year commitment to grantees, avoid funding gaps, and ensure communities get the support they were promised.”
The GOP lawmakers also encouraged HUD to structure any funding cap process in a way that “avoids funding gaps and protects ongoing housing and supportive service operations.” They noted that “given the compressed timeline in 2025 and potential delays caused by ongoing fiscal constraints, extending current CoC awards for an additional year would provide a stable bridge as the Department transitions to its next strategic phase.”
Stay well,
Mike Paone
Executive Vice President
Joliet Region Chamber of Commerce & Industry
mpaone@jolietchamber.com
815.727.5371 main
815.727.5373 direct