Government Affairs Roundup
“Your Timely Roundup of Local, State, and Federal Updates”
Chamber members:
It has been a busy week so far with elections yesterday and a packed house at the Joliet City Council meeting on Monday reviewing the proposed Joliet Technology (Data) Center. A couple of items below talk about the ongoing topic of home affordability.
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Illinois Launches New Downpayment Program for First-Time Home Buyers
Governor JB Pritzker’s administration is rolling out a new initiative aimed at making homeownership more attainable for first-time buyers across Illinois. The program, called Access Home, will provide up to $15,000 in down payment and closing cost assistance to eligible residents, addressing one of the most significant barriers to entering the housing market: upfront costs.
The effort is part of a broader affordability agenda championed by the governor, which places housing at the center of his policy priorities. Alongside this program, the administration has proposed measures to ease restrictions on multi-unit housing development, legalize accessory dwelling units, and reduce regulatory hurdles that have slowed new home construction in recent years.
Administered by the Illinois Housing Development Authority, the Access Home program pairs a 30-year fixed-rate mortgage with financial assistance that can be used toward both existing homes and new construction. The assistance comes in the form of a zero-interest, “silent” second mortgage. Repayment is deferred for up to 30 years and is only required if the homeowner sells or refinances the property before that period ends.
Funding for the program will come from a mix of existing resources, including reallocated dollars from previous assistance programs, excess liquidity from single-family housing funds, and proceeds from future revenue bond issuances.
State officials say the goal is to help working- and middle-class buyers enter the housing market sooner and begin building equity. Kristin Faust, executive director of the Illinois Housing Development Authority, emphasized the program’s focus on affordability, noting that it is designed to help first-time buyers overcome the financial hurdles that often prevent them from purchasing a home. She also encouraged prospective buyers to explore their options, even if they are unsure about their readiness.
Eligibility for the program will depend on several factors, including credit history, household income, home price, and location. Income limits vary by region. In Cook County, for example, first-time homebuyers can qualify with incomes up to $137,885 depending on household size, while in Sangamon County, the cap is set at $131,905.
While the Access Home program has drawn support, parts of the governor’s broader “BUILD” housing plan have faced pushback—particularly proposals that would limit local control over zoning decisions. However, the plan’s financial investments have been more widely embraced, including nearly $250 million in capital funding and an additional $50 million dedicated to expanding existing homebuyer assistance programs.
Executive Order Focusing on Higher Education Goals
Governor JB Pritzker is pushing Illinois to reset its higher education goals, launching a new effort aimed at increasing the number of adults with college degrees or other postsecondary credentials. Through a newly issued executive order, the governor has directed state agencies to develop updated targets that better align with the demands of the modern workforce.
At the center of the order is the creation of a statewide working group tasked with evaluating Illinois’ current workforce and education systems. The group will review existing programs, gather input from industry leaders, labor organizations, and local economic development groups, and ultimately recommend new attainment goals for the state.
The move comes as Illinois falls just short of a long-standing benchmark. In 2009, lawmakers established the Illinois P-20 Council and set a goal that 60% of adults would hold a college degree or high-quality credential by 2025. While progress has been made—rising from 41% in 2008 to about 57.4% in 2023, according to the advocacy group Advance Illinois—the state has not yet reached that target.
At the same time, workforce trends are raising the stakes. Projections cited by the governor show that by 2031, more than 70% of jobs will require education or training beyond high school, underscoring the need for a more highly skilled workforce.
However, recent research suggests that simply increasing degree attainment may not be enough. Studies from the Illinois Workforce and Education Research Collaborative highlight ongoing disparities in outcomes. While a college degree generally leads to higher earnings, graduates from lower-income backgrounds often earn less than their peers from wealthier families—even when they have similar degrees and careers.
Additional findings show that alternative career pathways—such as construction, manufacturing, and wholesale trade—can provide strong wages and upward mobility without requiring a college degree. But those opportunities are not evenly distributed, with benefits often concentrated among men or specific racial and ethnic groups.
In his order, Pritzker pointed to steps his administration has already taken to improve college affordability. Funding for programs like the state’s Monetary Award Program and AIM HIGH grants has increased, and a growing share of in-state students are attending public universities without paying tuition or fees—rising from 24% in 2018 to 44% in fiscal year 2025.
The newly formed working group will include representatives from key education and workforce agencies, including the Illinois Board of Higher Education, the Illinois Community College Board, the Illinois State Board of Education, the Illinois Student Assistance Commission, and several economic and workforce-focused departments. Advisory members will also come from agencies focused on human services, corrections, public health, and the office of Illinois First Lady M.K. Pritzker.
The group is expected to deliver its recommendations to the governor by December 1, 2026, setting the stage for a new roadmap on education and workforce development in Illinois.
Health Care Funding Cuts Paused
A federal judge has temporarily blocked the Trump administration’s attempt to cut hundreds of millions of dollars in health care funding to Illinois and three other states, allowing the money to continue flowing while a legal challenge moves forward.
In a ruling issued late Friday, U.S. District Court Judge Manish Shah granted a preliminary injunction preventing the federal government from withholding roughly $600 million in grants from Illinois, California, Colorado, and Minnesota. The decision extends an earlier temporary restraining order that has only been in place for about a month.
In his order, Shah warned that cutting off the funding could have serious consequences for public health systems. He wrote that losing the resources needed to support and maintain infrastructure “puts the health of plaintiffs’ residents in jeopardy,” adding that the states’ interests outweigh what he described as the federal government’s “likely unlawful” attempt to use already-approved funding to influence state policies.
The lawsuit was filed in February after the U.S. Department of Health and Human Services notified Congress of its plan to terminate the grants, stating they no longer aligned with agency priorities. Federal officials have maintained that the decision was justified, arguing in court filings that the terminations were reasonable and properly explained, and that the dispute is contractual rather than constitutional.
States challenging the cuts see it differently. In court documents, they argue the move is both unlawful and unconstitutional, alleging the administration is targeting them for “devastating funding cuts” tied in part to policy differences, including decisions about how state resources are used for federal immigration enforcement.
For Illinois, the financial stakes are significant. The state stood to lose more than $170 million in health care funding that supports a wide range of public health programs. That includes tens of millions of dollars for the Illinois Department of Public Health and the Chicago Department of Public Health, funding efforts such as disease prevention, HIV and sexually transmitted infection programs, and broader community health initiatives.
The largest portion of funding at risk comes from the Public Health Infrastructure Block Grant, which supports lead poisoning prevention programs and hundreds of public health jobs across the state. According to the lawsuit, the loss of those funds could have forced the Illinois Department of Public Health to lay off nearly 100 workers and disrupted funding for hundreds more positions at local health agencies.
The potential impact extends beyond government agencies. Major institutions and organizations—including Ann & Robert H. Lurie Children’s Hospital of Chicago, University of Chicago, Northwestern University, the American Academy of Pediatrics, and the American Medical Association—also faced potential funding losses under the plan.
Illinois Attorney General Kwame Raoul praised the court’s decision, saying the injunction ensures that essential public health workers, including nurses and disease investigators, can remain on the job while the case proceeds.
For now, the ruling preserves funding, but the broader legal fight over the administration’s authority to redirect or terminate those grants is far from over.
Bipartisan Bill Focuses on Improving Housing Access & Affordability
The U.S. Senate has passed a sweeping bipartisan housing bill aimed at tackling one of the country’s most pressing economic challenges: the growing gap between housing costs and what Americans can afford.
Approved by a wide 89–10 margin, the legislation reflects rare agreement in Congress on the need to increase housing supply and lower costs. Lawmakers from both parties say the impacts could be significant—particularly for first-time homebuyers, renters, and communities that have struggled with limited housing options.
At its core, the bill focuses on making it easier and cheaper to build housing. By streamlining certain federal regulations and easing requirements tied to environmental reviews and inspections, the measure is designed to accelerate construction timelines. It also expands how federal housing dollars can be used, giving developers and local governments more flexibility to build and rehabilitate affordable homes.
Supporters argue those changes could help address the nation’s housing shortage, which has driven prices higher for years. Home prices have risen faster than incomes, leaving many buyers priced out, while rent—despite cooling slightly in recent years—remains significantly higher than pre-pandemic levels.
The legislation also aims to empower local communities to respond to their own housing needs. Rather than applying a one-size-fits-all approach, the bill gives local leaders more control and tools to address regional challenges, whether that means increasing urban density, expanding rural housing options, or investing in senior and disability housing.
Another major component targets financing. The bill would allow banks to invest more heavily in affordable housing projects and expand the use of Section 8 funding to rehabilitate existing public housing. It also lifts caps on certain grants tied to homelessness services, which could help communities expand emergency shelter capacity and outreach programs.
The potential impact extends to the construction side as well. By removing a longstanding requirement that certain manufactured homes be built on a permanent chassis, the bill could lower costs and make modular housing easier to produce and deploy—an increasingly important option for quickly adding supply in high-demand areas.
One of the most debated provisions focuses on corporate ownership of single-family homes. The bill would restrict large institutional investors—defined as those owning 350 or more homes—from indefinitely holding those properties. While they could continue to build or purchase homes for rental use, they would be required to sell them to individual buyers after seven years.
Backers say that provision could ease competition for everyday buyers trying to enter the market. Critics, however, warn it may reduce the supply of rental housing and potentially push rents higher if fewer large-scale landlords are operating in the market.
The broader push comes as the housing market continues to struggle. Since 2022, rising mortgage rates have slowed home sales, which remain well below historical averages. At the same time, years of underbuilding have created a persistent shortage of homes nationwide, compounding affordability challenges.
Despite strong bipartisan support in the Senate, the bill’s path forward remains uncertain. The House has passed its own version and may seek changes, potentially triggering lengthy negotiations. Additional political hurdles also remain, leaving the timeline for final passage—and the real-world impacts of the bill—unclear for now.
Stay well,
Mike Paone
Executive Vice President
Joliet Region Chamber of Commerce & Industry
mpaone@jolietchamber.com
815.727.5371 main
815.727.5373 direct