“Your Timely Roundup of Local, State, and Federal Updates”
Chamber members:
Short update for you today. Only the Senate is meeting in Springfield this week as it enjoys its first four-day week of the spring session. A committee deadline this Friday will determine which Senate bills advance out of committee.
Even after that deadline, some bills on second reading may still be sent back to committee by their sponsors to add amendments. Lawmakers can also request deadline extensions, and amendments to “shell bills” are expected to continue throughout the rest of the spring.
The final deadline for bills to pass out of their original chamber is the third reading deadline, which is set for April 17 for both the House and Senate. So far this year, the Senate has held 15 session days and moved 126 bills out of committee, either through the agreed bills list or a formal vote.
The House has met for 9 session days and moved 65 bills out of committee. The House is not scheduled to return until Wednesday, March 18. When lawmakers return, they will have just 7 session days to move bills out of committee before the March 27 committee deadline.
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COGFA Report on FY26 & FY27 Revenues
Last week, the Commission on Government Forecasting and Accountability released updated estimates for the current fiscal year and FY27. Expanding on some of the national trends data that the Commission typically outlines in their monthly reports, the report outlined continued economic uncertainty due to federal and international trade policies and disruptions. There were several positives to signal improving conditions, including a stronger than expected Q4 to close out 2025 nationally, declining unemployment rate as of January 2026, and moderating inflation. Here in Illinois, the outlook leaves much to be desired, with labor, population, and economic growth indicators lagging national benchmarks.
The report’s main findings are the estimated upward revisions for expected FY26 revenues—expected to be 1.2% higher (or $686 million) above anticipated revenues. The increase is largely driven by higher personal income tax, sales tax, and other sources—offsetting lower corporate tax and federal source receipts.
For FY27, the Commission is estimating State revenues to total $55.526 billion, is approximately $530 million below the Governor’s Office $56.055 billion revision. According to the Commission, which looks at current law only, the Governor’s revenue estimate relies on $728 million in new revenues that have not been enacted, including the changes to LGDF, the Net Operating Losses deduction change, sales tax distribution change, casino graduated tax on table games, and new social media fee. Were GOMB’s FY27 revenue estimates not inclusive of the nearly $800 million revenue enhancements, COGFA’s FY27 revenue increases would be nearly $200 million higher than the Governor’s Office due in large part due to stronger projected corporate income tax collections.
Lawmakers Propose Bipartisan Commission as U.S. Debt Nears $39 Trillion
A bipartisan group of U.S. senators has introduced legislation aimed at addressing the nation’s growing debt through a collaborative, bipartisan process. The proposal, known as the Bipartisan Fiscal Commission Act, would create a 16-member commission tasked with developing recommendations to stabilize the federal government’s debt. The commission would be made up of 12 members of Congress and four outside experts, selected by congressional leadership.
Under the proposal, the commission would be required to produce a report outlining how the federal government could stabilize the ratio of public debt to gross domestic product (GDP) within 15 years and strengthen the solvency of federal trust funds over the next 75 years. If approved by the commission by May 2027, the recommendations would receive expedited consideration in both chambers of Congress.
Supporters say the measure is intended to help break through partisan gridlock and encourage long-term fiscal planning. Carolyn Bourdeaux, executive director of Concord Action, said rising debt levels are already impacting the economy.
“Financing our $38 trillion debt is driving up interest costs, crowding out private investment, and increasing the risk of inflation and long-term economic stagnation,” Bourdeaux said in a statement. “A bipartisan fiscal commission with meaningful authority and expedited consideration of its recommendations can help break through the gridlock that has stalled progress for too long.”
U.S. Sen. Tim Kaine, D-Virginia, said the effort is designed to start a bipartisan conversation on how to address the nation’s fiscal challenges while protecting key federal programs. “We must find a bipartisan path forward to address our nation’s debt while preserving vital programs that Americans rely on,” Kaine said.
The bill is also sponsored by Sens. John Curtis, R-Utah, and Angus King, I-Maine, with additional co-sponsors including Sens. Thom Tillis, R-North Carolina; Chris Coons, D-Delaware; Todd Young, R-Indiana; Bill Cassidy, R-Louisiana; Jeanne Shaheen, D-New Hampshire; Kevin Cramer, R-North Dakota; and Mark Warner, D-Virginia.
Maya MacGuineas, president of the Committee for a Responsible Federal Budget, said a commission could serve as a useful starting point for broader fiscal reforms. “A commission isn’t a substitute for policy change or for political will, but rather a tool to support both,” she said.
Separately, another bipartisan proposal in Congress seeks to place limits on federal deficits. House Resolution 981 would cap annual deficits at 3% of GDP by 2030 or sooner. Last year’s deficit was roughly double that level, at about 6% of GDP. The proposal would first aim to reduce deficits to 3% of GDP or less before eventually working toward a balanced federal budget. Congress has not achieved a balanced budget in more than two decades.
The federal government last recorded a budget surplus in 2001. Since then, spending has consistently exceeded revenues, with deficits increasing significantly during the COVID-19 pandemic. The fiscal year 2025 deficit reached $1.7 trillion, or about 6% of GDP.
International and domestic fiscal watchdogs have also raised concerns. A recent report from the International Monetary Fund warned that U.S. debt levels are likely to remain elevated in the coming years, posing potential risks for both the U.S. and global economies.
The national debt—now approaching $39 trillion—has grown largely due to persistent deficits, along with rising costs for programs such as Social Security and Medicare as the population ages and healthcare expenses continue to increase.
According to projections from the Congressional Budget Office, the federal government is expected to borrow an additional $26 trillion between late 2025 and 2036, pushing public debt to an estimated $56 trillion, or about 120% of GDP.
Stay well,
Mike Paone
Executive Vice President
Joliet Region Chamber of Commerce & Industry
mpaone@jolietchamber.com
815.727.5371 main
815.727.5373 direct