Government Affairs Roundup
“Your Timely Roundup of Local, State, and Federal Updates”

Chamber members:

This will be the last edition of the roundup for 2025. As I mentioned last week, thanks to all of the loyal readers.

Special thanks to CITGO as the year-long sponsor of this email. CITGO has been supporting this project since the beginning of 2022.

Happy Holidays to all and I’m looking forward to connecting in 2026!


*Government Affairs Roundup brought to you by CITGO*

City of Joliet Budget Passes
For Immediate Release
December 16, 2025

City of Joliet Passes 2026 Budget with No City Property Tax Increase for Second Consecutive Year

2026 Annual Budget Underscores City’s Commitment to Strategic
Investment in Public Safety, Infrastructure, Quality of Life

JOLIET, IL — The Joliet City Council has passed its official 2026 annual budget, a balanced and forward-looking plan that keeps taxes level while continuing strategic investments in public safety, infrastructure and quality-of-life improvements across all districts of the city. The proposed budget includes no increase to the City’s portion of the property tax levy, marking the second consecutive year residents will see no city property tax increase. This milestone is achieved despite rising costs across all sectors, underscoring the City’s commitment to fiscal discipline.

“This budget reflects six months of thoughtful collaboration between the City Council, department leadership and the administration,” said City Manager Beth Beatty. “The process involved individual input from all City Council members and department leadership. All departmental requests were reviewed line-by-line to ensure investments protect core services, strengthen City operations and prepare Joliet for future growth.”

Public safety remains a top priority in the proposed 2026 budget. The Police and Fire Departments represent approximately 75% of the City’s total manpower costs, reflecting sustained investment in staffing, training, equipment and facilities that support readiness and reliability. In addition to $4 million for Fire and Police Department vehicles, the budget also allocates $23.4 million for road and sidewalk improvements, with a minimum of $2 million dedicated to sidewalks, $7 million for the Public Safety Institute in partnership with Joliet Junior College and $2.7 million for Roadways Division vehicles and equipment.

“The 2026 annual budget continues the City of Joliet’s commitment to long-term financial stability,” said Mayor Terry D’Arcy. “As stewards of taxpayer dollars, we have a responsibility to prioritize fiscal discipline, which was our guiding principle in creating this budget.”

The 2026 budget maintains General Fund reserves in excess of 40% of annual expenditures, using casino revenues exclusively for capital projects, directing fuel tax revenues toward fleet replacement and implementing cost-containment measures such as updates to non-union health insurance plans. These practices help protect taxpayers while allowing the city to maintain optimal service levels and invest in Joliet’s future.

“The 2026 annual budget continues the City of Joliet’s commitment to long-term financial stability,” said Mayor Terry D’Arcy. “As stewards of taxpayer dollars, we have a responsibility to prioritize fiscal discipline, which was our guiding principle in creating this budget.”

The 2026 budget additionally includes continued support for completion of the City Square and Chicago Street Corridor projects, which are designed to enhance downtown connectivity, safety, and public gathering space. City Square will create a central civic space near the Rialto Square Theatre for community events and everyday use, while the Chicago Street Corridor project improves streetscape design and access through the downtown core, and advances the Lake Michigan Water Project, one of the most significant long-term investments in Joliet’s history. Funding supports watermain replacement, system improvements and the City’s share of the Grand Prairie Water Commission, ensuring long-term water reliability, system resiliency, and sustainability.

Report Warns Illinois Would Face Potential Electricity Shortage Within Five Years
Illinois could face chronic electricity shortages and higher monthly bills as soon as 2030, driven by surging demand from artificial intelligence and data centers, according to a report released Monday by three state agencies.

Because new power plants and transmission projects typically take five to seven years to build, the state must act immediately to avoid shortfalls, the report said.

Independent analysts have warned for years that demand growth—especially in northeast Illinois—combined with the planned closure of coal- and natural gas-fired power plants would strain the grid. But the 222-page report marks the first time the state has formally adopted such an urgent tone, potentially paving the way for regulators to delay plant closures and approve higher rates to support new generation.

Under current policies, neither northern Illinois’ Commonwealth Edison territory nor the downstate Ameren service area will have sufficient resources to reliably meet electricity needs by 2030 under several scenarios, the report found.

The Illinois Commerce Commission, Illinois Environmental Protection Agency and Illinois Power Agency outlined steps to mitigate the risk, including accelerating renewable energy development, expanding transmission lines and battery storage, promoting conservation, and possibly delaying fossil-fuel plant closures mandated under a 2021 climate law.

Those recommendations will be incorporated into a statewide Integrated Resource Plan expected within a year. Commissioned by lawmakers last fall, the plan represents the most significant effort to align supply and demand since Illinois deregulated its electricity markets in 1997.

Even before the plan is finalized, the Illinois Power Agency could begin signing longer-term power purchase agreements as early as June to encourage new renewable investments. Currently, the agency typically signs three-year contracts, which are too short for most power plants to recover their costs.

“What’s coming is increasing pressure on affordability that customers are not going to be very tolerant of,” said Matthew Tomc, vice president of regulatory policy and energy supply for Ameren Illinois. “There is a need to take action to prevent this.”

The debate will unfold during the 2026 election cycle, as Governor JB Pritzker seeks a third term and continues to champion the state’s goal of producing carbon-free electricity by 2045. Delaying fossil-fuel plant closures would be politically difficult, particularly because the first facilities slated to close are among the most polluting and are often located in Black and brown communities.

The report notes that postponing closures would ease near-term shortages but would not eliminate the need for new generation. One planning scenario envisions replacing fossil-fuel plants in northern Illinois by 2045 with zero-emission combustion turbines powered by green hydrogen—an industry still in its infancy and not currently used by Illinois power plants.

A spokesman for the governor declined to comment on potential delays in plant closures but highlighted the 2021 Climate and Equitable Jobs Act, which preserved the state’s nuclear fleet and incentivized nearly 16 gigawatts of new renewable capacity.

Senator Sue Rezin of Morris said the report supports her long-standing call to keep fossil-fuel plants operating longer. “Closing plants before we have proven replacements online is not climate leadership,” she said. “It’s a reliability gamble.”

Environmental advocates said the findings underscore the need to ensure large energy users shoulder their share of costs. Jen Walling, executive director of the Illinois Environmental Council, said data centers should be required to secure their own renewable power rather than driving up bills for others.

“Keeping some fossil-fuel plants open may end up being part of the solution,” Walling said. “But clean energy remains the most cost-effective and reliable option, and Illinois should stay the course.”

The report projects electricity demand in the ComEd service area will rise 24% by 2030, turning the region from a net exporter into a net importer by that year, with outright shortages by 2032. Demand in the Ameren territory is expected to rise 11% by 2030 and exceed available supply about five years later.

Regional grid constraints will compound the problem. On the PJM Interconnection grid, which serves northern Illinois and 12 other states plus Washington, D.C., shortages could reach 28 gigawatts within a decade—roughly the equivalent of 28 nuclear reactors. On the Midcontinent Independent System Operator grid, which serves downstate Illinois, the shortfall could reach 32 gigawatts by 2035.

Those regional shortages will make electricity imports harder and drive bills higher. Ameren estimated in May that summer electricity bills would rise about $45 above the average $151 monthly bill; actual increases were higher after a prolonged June heat wave.

Without swift action, Illinois could face similar or worse price spikes for many summers to come, the report warned.

Senate Health Care Plans Fail Mainly on Party-Line Votes
Two competing Senate health care proposals failed last Thursday on largely party-line votes, leaving Congress no closer to addressing steep health insurance premium increases expected in 2026.

A Republican-backed plan to expand health savings accounts (HSAs) for people who purchase insurance through the Affordable Care Act (ACA) marketplace fell short of the 60 votes needed to advance, failing 51–48. All Democrats opposed the bill, and Sen. Rand Paul (R-Ky.) was the lone Republican to vote against it.

The proposal, drafted by Senate Health, Education, Labor and Pensions Committee Chair Bill Cassidy (R-La.) and Senate Finance Committee Chair Mike Crapo (R-Idaho), reflected President Trump’s call to redirect federal subsidies from insurers to consumers.

Under the plan, funding for enhanced ACA premium tax credits would be converted into federal contributions to HSAs to help cover out-of-pocket costs, according to KFF, a health policy research group. The proposal would encourage enrollment in lower-premium, high-deductible plans and expand access to catastrophic coverage on the federal marketplace.

Senate Democratic Leader Chuck Schumer (N.Y.) denounced the bill as inadequate, arguing it would do nothing to prevent large premium hikes next year. “It doesn’t extend the ACA tax credits for a day, a month, or a year,” Schumer said on the Senate floor, calling the proposal “little more than junk insurance.”

Cassidy and Crapo countered that their plan would give patients greater control over health care spending. Cassidy said the proposal would deposit $1,000 into HSAs for individuals under 50, with a family of four eligible for $5,000. “This empowers the patient to shop, driving competition and lowering health care costs,” Cassidy said.

Crapo said the bill aligned with Trump’s directive to put federal health care dollars in the hands of families rather than insurance companies.

Later Thursday, Senate Republicans blocked a Democratic proposal to extend enhanced ACA premium subsidies set to expire at the end of 2025. That bill also failed 51–48, despite support from Republican Sens. Susan Collins (Maine), Lisa Murkowski (Alaska), Dan Sullivan (Alaska), and Josh Hawley (Mo.).

The Democratic measure, introduced by Schumer, would have extended the subsidies—first enacted during the COVID-19 pandemic—for three years. Schumer warned it was lawmakers’ last opportunity to act before premiums spike. “Our bill is the last train to leave the station,” he said.

According to KFF, ACA premiums are projected to rise by an average of 26% in 2026. Enrollees receiving enhanced subsidies could see their monthly payments more than double if the credits expire in January.

Sen. Jeanne Shaheen (D-N.H.) said millions of Americans would face significant financial strain if Congress fails to act, though bipartisan talks to extend the subsidies have so far stalled.

Republicans criticized the Democratic bill for lacking reforms, such as limiting subsidies for higher-income households or requiring some contribution from lower-income enrollees.

With both proposals rejected, lawmakers are unlikely to vote again on health insurance costs until next year. Centrist senators in both parties expressed hope that the failed votes could open the door to renewed bipartisan negotiations.

GOP Centrists Push ACA Discharge Petition Past 218-signature Threshold

Centrist Republicans on Wednesday moved swiftly to sign a Democratic-led discharge petition extending Obamacare (ACA) subsidies for three years, providing the decisive 218 signatures needed to force a House vote over the objections of GOP leaders.

Reps. Brian Fitzpatrick (R-Pa.), Mike Lawler (R-N.Y.), Rob Bresnahan (R-Pa.) and Ryan Mackenzie (R-Pa.) went to the House floor Wednesday morning to sign onto the petition led by House Minority Leader Hakeem Jeffries (D-N.Y.), marking a significant act of defiance against party leadership.

The last-minute effort followed leadership’s rejection of moderate Republicans’ push for an amendment vote to extend the subsidies as part of a broader GOP health care package.

“We’ve exhausted nearly every option, and we worked in good faith over these past many weeks to come to a compromise,” Lawler said. “I still believe a straight three-year extension is not the right policy, but I fundamentally believe doing nothing is even worse. And to me, leadership left us with no option.”

Congress Stalls on Full-year Funding Bills, Second Shutdown Looms
With just seven weeks remaining before the current funding deadline, Congress has made little progress on the nine outstanding annual appropriations bills, increasing the risk of another partial government shutdown early next year.

The government is funded through Feb. 1 under a continuing resolution (CR), but passing full-year appropriations typically takes two to three weeks even after lawmakers agree on final text. Despite the tight timeline, neither chamber is close to final action.

The House is not expected to advance any funding legislation before its Christmas recess, as GOP leaders remain focused on a health care package unveiled. The proposal, titled the Lower Health Care Premiums for All Americans Act, was introduced as a Republican counter to Democrats’ failed effort to extend enhanced Affordable Care Act premium tax credits.

In the Senate, progress has stalled on a proposed five-bill appropriations “minibus,” reportedly due to objections from a small group of Republican senators over earmarks included in the package. The minibus, which has not yet been publicly released, is said to contain roughly $5 billion in earmarked spending.

The five-bill package would fund federal agencies for fiscal year 2026 in the areas of Transportation and Housing and Urban Development; Defense; Labor and Health and Human Services; Commerce and Justice-Science; and Interior.

Most federal agencies are still operating at fiscal year 2024 funding levels. Congress never enacted a full-year budget for fiscal year 2025, instead relying on three consecutive CRs to delay a shutdown.

On the same day the government reopened, lawmakers also passed a three-bill appropriations package providing full-year funding for Military Construction and Veterans Affairs; Agriculture, Rural Development and the Food and Drug Administration; and the Legislative Branch.

The remaining nine appropriations bills—including those covered by the stalled five-bill minibus—are currently funded under the CR. If Congress fails to enact those bills, or another stopgap, by Feb. 1, agencies funded by those measures would face a partial government shutdown.

Redistricting Update
Indiana lawmakers sent political shockwaves through the Midwest last week after the Republican-led state Senate overwhelmingly rejected a proposed congressional map designed to strengthen the GOP’s hold on U.S. House seats.

The vote — which saw more Republicans oppose the plan than support it — amounted to a rare rebuke of President Trump. The unexpected rejection has prompted Illinois Democrats to pause — though not abandon — discussions about whether to respond with a more aggressive, blue-leaning map of their own.

Governor JB Pritzker praised Indiana lawmakers for bucking the president’s pressure. “Our neighbors in Indiana have stood up to Trump’s threats and political pressure, instead choosing to do what’s right for their constituents and our democracy,” Pritzker said in a statement. “Illinois will remain vigilant against his map rigging — our efforts to respond and stop his campaign are being heard.”

Illinois House Speaker Emanuel “Chris” Welch echoed that sentiment, crediting Indiana Democrats and “a few courageous Republicans” for opposing what he called Trump’s gerrymandering efforts.

“To protect and preserve our Republic, we need more Republicans across the country to stand up and fight back against Trump and MAGA’s tyranny,” Welch said. “In Illinois, we remain vigilant and committed to protecting our democracy.”

Illinois Senate President Don Harmon’s office struck a more cautious tone. “We will review our options as needed,” spokesman John Patterson said.

Not all Illinois Democrats want the debate to continue. State Sen. Willie Preston, who chairs the Senate Black Legislative Caucus and is running for Congress, urged Pritzker to rule out further redistricting altogether, warning it could dilute Black political representation.

With Democrats already holding a 14–3 advantage in Illinois’ congressional delegation, Preston argued the state has gone far enough. “We have already done our job in Illinois to protect Democratic values,” he said. “Now, let’s not sacrifice our core principles in the pursuit of power. Black Democrats have already given so much to our party and this nation. We should not be asked to give more.”

Get Covered Illinois Extends First Open Enrollment Deadline
Get Covered Illinois announced that Illinois residents now have until December 31 to enroll in health insurance coverage that begins January 1.

The extension comes at a crucial moment, as Illinois works to ensure residents maintain access to high-quality coverage amid changes at the federal level. This year marks Get Covered Illinois’ first Open Enrollment Period operating a state-based marketplace independent of the federally run HealthCare.gov. State officials emphasized that local control is already providing meaningful benefits for Illinois customers.

“Shifting to a state-based marketplace has given Illinois the authority and flexibility to make decisions that put our residents first,” said Morgan Winters, Director of Get Covered Illinois. “This enrollment deadline extension is exactly the kind of customer-focused action that we could not take as a federally facilitated marketplace. By running our own marketplace, we can improve access, expand support, and give Illinoisans more time to get covered.”

Get Covered Illinois extended its first enrollment deadline to ensure people have ample time to receive help, compare plans, and select the coverage that best meets their needs and budget.

Extension Helps Illinoisans Navigate Changes 

The extension is especially important as Illinoisans navigate a changing landscape. With premiums increasing, some insurers choosing not to offer marketplace plans, and uncertainty around federal policy, it’s critical that customers review their options and choose the plan that best fits their health needs and budget. For many, this will mean choosing a new plan at a different metal level.

Coverage That Includes Essential Health Benefits — and Extra Time to Enroll 

During the extended enrollment period, Illinoisans can enroll in comprehensive health coverage. Every plan Get Covered Illinois offers includes prescription drugs, mental health services, pediatric care, emergency services, free preventive care, and other essential health benefits.

Illinoisans who want their coverage to begin January 1 must enroll by the extended deadline of December 31. They can explore plans, apply for financial help, and enroll at GetCoveredIllinois.gov.

Free enrollment support is available in-person, by phone, or with a local certified navigator or broker.  The Get Covered Illinois Customer Assistance Center offers support in more than 250 languages and has extended hours during open enrollment. Customers can call 1-866-311-1119 (TTY: 711) for assistance.

Get Covered Illinois is the state’s official health insurance marketplace and a division of the Illinois Department of Insurance. The marketplace helps residents shop, compare, and enroll in quality, affordable health coverage under the Affordable Care Act. Free one-on-one enrollment assistance is available statewide from certified navigators and licensed brokers. For more information or to get help signing up for coverage, visit GetCoveredIllinois.gov or call 1-866-311-1119 (TTY: 711).

Business Owners Survey from the University of Chicago
We’ve worked in the past with Dr. Morrissette from the University of St. Francis who is working with the University of Chicago Booth School of Business to conduct 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

The 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.

Your responses will be anonymous, confidential and be submitted directly to the University via the link below.

Please take a few minutes to complete this brief survey
https://chicagobooth.az1.qualtrics.com/jfe/form/SV_beIFPtPtKGZEw74

Also, please feel free to forward this email to any other privately held business owners or executives so their input can also be included.

Special thanks from:

Dr. Stephen G. Morrissette
Visiting Professor of Strategic Management
Booth School of Business
The University of Chicago
stephen.morrissette@chicagobooth.edu
https://www.chicagobooth.edu/faculty/directory/m/stephen-morrissette

Stay well,

Mike Paone
Executive Vice President
Joliet Region Chamber of Commerce & Industry
mpaone@jolietchamber.com
815.727.5371 main
815.727.5373 direct