“Your Timely Roundup of Local, State, and Federal Updates”
Chamber members:
State lawmakers have returned to Springfield this week and next to launch their legislative session. As always with an election year, sessions are somewhat limited and quieter than usual. Two main themes seem to be setting the course for what will occur – budget pressures and topics relating to costs of living. More on that below.
On the federal level, we’re almost obliged to begin another government shutdown countdown. Although this time around predictions are a lot more optimistic than the last one.
*Government Affairs Roundup brought to you by CITGO*
Lawmakers Return to Springfield Focused on Affordability and Budget Pressures
Illinois lawmakers are returning to Springfield this month for the second year of the 104th General Assembly, with affordability and budget uncertainty dominating the early agenda.
The Senate convened Jan. 13, while the House is set to begin Jan. 20. Both chambers are scheduled to wrap up the spring session in late May.
At the center of the discussion is a projected $2.2 billion budget shortfall for the next fiscal year — a gap that could grow significantly in the coming years as federal support declines. Senate President Don Harmon said his top priority is passing another balanced, responsible budget, even as the state faces shrinking federal aid for programs such as SNAP, Medicaid and childcare.
Those reductions, Harmon said, amount to roughly $4 billion in lost support for Illinois.
At the same time, lawmakers are closely watching revenue forecasts amid a cooling national economy. “Some revenues are performing better than expected, which would normally be good news,” Harmon said. “But every morning I wake up and wonder what hole Washington is going to blow in our budget today.”
According to the governor’s budget office, long-term projections show the deficit could exceed $5 billion by 2031.
House Speaker Emanuel “Chris” Welch echoed those concerns, saying Illinois has navigated projected deficits before by working across chambers and with the governor’s office. This year, however, he said replacing lost federal dollars will be especially difficult. “No state has the ability to fully backfill that,” Welch said. “What we’re trying to do is stand in the gap for the most vulnerable as best we can.”
While budget pressures dominate leadership discussions, lawmakers in both parties say affordability will be a major focus this year. Senate Minority Leader John Curran said Republicans will push for policies aimed at reducing costs for families and businesses, including tax relief, energy rebates and lower prescription drug prices.
House Republicans share that focus, according to Minority Leader Tony McCombie, who said affordability has been a central theme for her caucus throughout her nine years in office.
McCombie said Republicans will also emphasize accountability, pointing to what she described as agency mismanagement, including high error rates in the state’s SNAP program that could cost residents benefits. With the March 17 primary approaching, McCombie said she does not expect significant legislative movement early in the session.
Welch said Democratic priorities will include lowering household costs, supporting small businesses, growing wages and continuing investments in infrastructure and public safety.
One possible area of action is insurance regulation. Welch and Governor JB Pritzker have both signaled interest in revisiting legislation that would give the Department of Insurance greater authority to review and limit home and auto insurance rate increases. The measure passed the Senate last year but stalled in the House.
Other topics expected to resurface include data centers, which have drawn interest for their economic benefits but raised concerns about energy and water use. Lawmakers may again debate whether to adjust rates for large industrial users or amend the state’s data-privacy law, which operators say has driven projects to other states.
Labor unions may also renew efforts to address Tier 2 pensions for state employees hired after 2010, benefits that are at risk of falling below federal minimum standards.
A controversial “megaprojects” proposal could also return. The bill would allow developments costing more than $500 million to negotiate long-term property tax incentives with municipalities. The Chicago Bears are seeking such incentives for a proposed stadium in Arlington Heights, prompting opposition from some Chicago lawmakers.
Speaking of … Stadium Talks Continue
Negotiations between the state and the Chicago Bears over the team’s stadium future remain active, according to state Rep. Kam Buckner, a Chicago Democrat. Buckner said discussions with the team have become more transparent but emphasized continued scrutiny of any public role in the project — particularly given the $532 million still owed on Soldier Field renovations.
While the Bears have said they would privately finance the stadium itself, Buckner said infrastructure funding and tax treatment still warrant close examination. “Show your work,” Buckner said, adding that lawmakers are increasingly wary of deals driven by hype rather than long-term public benefit.
Despite lingering questions, Buckner said talks remain open as the spring session gets underway.
“Anything can happen,” he said.
Illinois Extends ACA Enrollment Period
Illinois officials have extended the Affordable Care Act enrollment period after fewer residents signed up for health insurance plans this year, following the expiration of enhanced federal tax subsidies.
As of January 4th, 445,335 Illinois residents had enrolled in coverage through Get Covered Illinois, the state-run marketplace — about 4% fewer than last year’s record total of 465,985 enrollees. While the decline was expected after subsidies expired at the end of last year, it has been far smaller than many experts feared. Nationally, estimates had warned that millions could lose coverage, particularly as average monthly premiums in Illinois were projected to rise by about 78%.
In response, Get Covered Illinois announced Monday that it is extending open enrollment by two weeks, pushing the deadline to Jan. 31. Coverage for those who enroll during the extension will begin Feb. 1.
“I recommend anyone needing health coverage or who hasn’t taken the time to compare their options to use this additional time to reach out to a broker or navigator,” said Ezra Watland, chief operating officer of the marketplace.
Nearly half of enrollees were automatically renewed into their plans, while 38% actively selected coverage and about 13% are new to the marketplace, according to state data.
Health care advocates say the relatively modest decline reflects effective outreach efforts but caution that affordability remains a concern. Kathy Waligora of EverThrive Illinois said it is unclear whether automatically reenrolled consumers are prepared for higher premiums without the enhanced tax credits.
Roughly 85% of Illinois enrollees previously relied on those subsidies, according to KFF. Waligora said more data is needed to fully understand the impact, though advocates remain hopeful Congress could still reinstate the credits.
Republicans in the U.S. House passed legislation to extend the subsidies, but the Senate has not taken up the measure and is considering alternatives. Some GOP lawmakers argue for broader reforms aimed at lowering insurance costs beyond the ACA marketplace.
The enhanced tax credits were introduced during the COVID-19 pandemic to expand affordability across income levels. Democrats pushed to extend them, but Congress failed to reach an agreement before they expired.
Despite this year’s dip, ACA enrollment has grown significantly over time. Nationwide, 24.3 million people now receive coverage through the marketplace, up from 11.4 million in 2020.
This is the first year Illinois has operated its own ACA marketplace.
Governor Pritzker Signs Energy Omnibus
Governor J.B. Pritzker has signed sweeping energy legislation that will add a new line item to Illinois utility bills and reshape the state’s energy landscape.
The Clean and Reliable Grid Affordability Act (CRGA), Senate Bill 25, passed both chambers of the General Assembly during the fall veto session and went to Pritzker’s desk Nov. 25, 2025. The governor signed the bill Thursday morning at Joliet Junior College.
One of the most debated aspects of CRGA is a new charge on electric bills starting in 2030, intended to fund the state’s purchase of three gigawatts of battery storage. The law also lifts the moratorium on large nuclear reactors, requires utility companies to develop virtual power plants, and aims to promote energy equity.
Under the legislation, utilities administering state energy efficiency programs must meet minimum spending requirements for low-income households, while the formula rates they previously received for running these programs will be removed.
At the signing, Governor Pritzker blamed federal policy and private grid operators for rising energy costs, emphasizing that Illinois is a net electricity exporter. “That means we produce more electricity than we use. It’s an advantage we have over other states, and we want to maintain that advantage,” he said, pledging to ensure a secure energy future while keeping costs in check.
However, a December 16 report from the Illinois Power Agency, Illinois Environmental Protection Agency, and Illinois Commerce Commission warned of potential energy shortages within four years if current trends continue. The 2025 Resource Adequacy Study projected capacity shortfalls for PJM and MISO, the multi-state grid operators serving Illinois, unless new resources are developed.
Republican lawmakers criticized the bill for potentially increasing consumer costs. State Rep. Nicole La Ha (R-Homer Glen) said the legislation “could lead to higher rates and less production” and emphasized the need for stronger consumer protections. State Sen. Darby Hills (R-Barrington Hills) called the removal of rate caps a direct threat to families struggling with high utility bills.
Democrats defended the law. State Sen. Bill Cunningham (D-Chicago), who joined Pritzker at the signing, said CRGA will expand renewable energy, deploy battery storage, and lift the nuclear moratorium — measures intended to increase supply and limit rate increases.
CRGA builds on Illinois’ previous energy legislation, including the 2016 Future Energy Jobs Act (FEJA) and the 2021 Climate and Equitable Jobs Act (CEJA). Environmental groups, labor unions, and solar energy companies praised the bill. The Illinois Clean Jobs Coalition said the law “doubles down on the state’s commitment to clean energy while addressing the affordability crisis caused by data centers, poor regional planning, and federal attacks on clean energy.”
Business groups, however, opposed the measure. The National Federation of Independent Business criticized expanded project labor mandates, union favoritism, and subsidies that would be paid by ratepayers. The Illinois Manufacturers’ Association also urged a veto, arguing that previously scheduled closures of clean coal and natural gas plants could exacerbate supply shortages.
Last summer, many Illinois residents faced record-high electricity bills, with ComEd rates increasing 53% and Ameren Illinois rates rising 47%, highlighting the urgency of addressing both energy supply and affordability.
Speaker Johnson Expects On-time Passage of Remaining Government Funding Bills
Congress has less than a month to pass the remaining appropriations bills funding federal agencies for fiscal year 2026, but House Republicans are confident they can meet the January 30 deadline without a Continuing Resolution.
House Speaker Mike Johnson (R-La.) told reporters Tuesday, “We cannot govern by CR or omnibus. And when we do that, it also loses Congress’s opportunity and credibility. It’s taken a while, but we are finally moving that boulder uphill.”
Following Johnson’s remarks, the House Budget Committee sent two more appropriations bills to the floor this week in the form of a minibus. The package provides $76 billion for the State and Treasury Departments, the IRS, the Executive and Judiciary branches, national security agencies, and others.
The minibus reflects bipartisan compromise. Democrats highlighted $30 billion in election security grants and $5.5 billion for international humanitarian programs, while Republicans emphasized taxpayer savings, cutting $9.3 billion — or 16% — from last year’s funding levels.
“Is this appropriations package perfect? No. No appropriations bill ever is,” said Ranking Member Jim McGovern (D-Mass.). “But it does avoid another lapse in funding and rejects some very bad ideas.”
House Appropriations Committee Chairman Tom Cole (R-Okla.) echoed the speaker’s optimism. “Is this my idea of a perfect bill? Of course not. But I’m happy for bills that pass and stay within lines,” he said. “My goal is to get them all done before January 30 in a way both sides are comfortable voting for — knowing they didn’t get everything they want, but their worst fears did not come true.”
So far, only three fiscal year 2026 appropriations bills have become law, funding Veterans Affairs, military construction, Agriculture and rural development, and the Legislative branch. Last week, a three-bill minibus passed the House, covering Commerce; Justice; Energy; Interior; and the Environmental Protection Agency, among others.
Senate Majority Leader John Thune (R-S.D.) said he plans to keep senators in session until the upper chamber passes that minibus and sends it to President Donald Trump’s desk. Any amendments in the Senate, however, will require the House to vote again before final approval.
House Republicans Unveil Framework for Second ‘Big, Beautiful Bill’
Just six months after passing their first mammoth budget reconciliation bill, House Republicans are pushing for a second “big, beautiful bill” aimed at cutting costs for families and reducing government spending.
The 188-member Republican Study Committee (RSC) released a framework Tuesday outlining a party-line plan to address homeownership, health care, energy costs, family policy, and what they describe as “wasteful” federal spending.
RSC Chairman Jodey Arrington (R-Texas) said the legislation is needed to complete President Donald Trump’s priorities and reverse what he called the Biden administration’s “failed economic agenda.”
“This blueprint cuts costs where families feel it most — housing, health care, and energy — slashes woke and wasteful spending, and locks in President Trump’s deregulatory agenda through the only process Democrats can’t block: reconciliation,” Arrington said. “We have 11 months of guaranteed majorities. We’re not wasting a single day.”
He emphasized that affordability will be “the most important issue for November,” and that Republicans need to “double down like never before.”
Key policies in the framework
The “Making the American Dream Affordable Again” plan proposes:
- Housing: Eliminating capital gains tax on the sale of homes for first-time buyers.
- Taxes: Repealing the estate (“death”) tax and imposing large taxes on foreign nationals who purchase U.S. real estate.
- Health care: Creating a marketplace for low-premium plans separate from the Affordable Care Act; reforming ACA subsidies so money goes directly to patients; requiring pharmacy benefit managers (PBMs) to pass some rebates to patients.
- Family support: Expanding paid family leave and certain child tax credits.
- Abortion funding: Permanently freezing federal funding for large abortion providers.
- Energy and regulatory policy: Cutting permitting, environmental, and regulatory requirements for energy projects while taxing third-party litigation against such projects.
The RSC estimates the framework would reduce the federal deficit by roughly $1 trillion over the next decade. That contrasts with Republicans’ previous reconciliation bill — the “One Big Beautiful Bill Act” — which is projected to cost about $3.3 trillion over 10 years, largely due to codifying the 2017 Tax Cuts and Jobs Act.
Fiscal watchdogs have urged Congress to rein in spending as the national debt is projected to surpass $53 trillion by 2035. The U.S. government added $602 billion to the debt in just the first three months of fiscal year 2026, according to Treasury Department data released Tuesday.
Business Attraction Prime Sites Grants
The intent of this program is to assist companies with large-scale capital investment projects that commit to significant job creation for Illinois residents as they relocate or expand operations within Illinois. Business Attraction Prime Sites grants can encompass a wide range of economic development projects and may include infrastructure and capital equipment purchases that will result in job creation in the state of Illinois.
Eligible Applicants: See application guidelines for complete eligibility requirements.
Application Deadline: June 30, 2026
Invite to Participate in the City of Joliet Comprehensive Plan Workshops
As part of the City’s Comprehensive Plan initiative, you are invited to attend a series of upcoming workshops focused on key topics that will guide Joliet’s growth and development.
Workshop Schedule
Location: Joliet City Hall – 2nd Floor Council Chambers
Time: 6:30 PM – 8:00 PM
- Wednesday, January 14 – Open Space & Environment
(Park access, river corridors, habitat protection, environmental hazards, green infrastructure) - Wednesday, January 21 – Arts, Culture & Heritage
(Neighborhood character, historic preservation, cultural celebration, public art, events & festivals) - Monday, January 26 – Economic Development
(Commercial corridors & areas, business, industry & job diversification, business support, workforce pathways) - Tuesday, January 27 – Land Use & Future Development
(Character areas & neighborhoods, new development & design, reinvestment corridors, community assets)
Why Attend?
Learn where the city is in the planning process
Dive deep into specific topic areas
Share your ideas and priorities for Joliet’s future
Pre-registration is encouraged!
www.joliet.gov/comprehensiveplan
Questions? Reply to this email or contact us at comprehensiveplan@joliet.gov
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