Government Affairs Roundup
“Your Timely Roundup of Local, State, and Federal Updates”
Chamber members:
The Illinois Senate is back in session this week after a week off, the last one in which only one legislative chamber is in session while the other is on recess as the House is off this week. As the calendar turns to May, it will be the stretch run before the adjournment of session.
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Senate Work To Do
The Illinois Senate is in session through Thursday, with two major issues drawing attention: a sweeping “megaprojects” bill tied to the Chicago Bears’ proposed stadium in Arlington Heights, and a House-passed redistricting amendment aimed at protecting minority representation.
Despite Governor JB Pritzker’s call for urgency, the Senate is not expected to take up an amended version of the megaprojects bill this week. Sen. Bill Cunningham said Monday that the chamber plans to review the House-passed measure, gather input from members, and determine next steps before moving forward.
That approach is consistent with Cunningham’s earlier comments following House passage, when he emphasized the need for further evaluation. Senate Democrats are expected to discuss the bill during a Tuesday caucus.
Governor Pritzker has continued to push for visible progress, warning that a lack of movement could complicate efforts to keep the Bears in Illinois. Team leadership is reportedly meeting with NFL officials this week to advance its stadium search, with a decision between Arlington Heights and a potential site in Hammond, Indiana, expected later this spring or early summer.
While the governor downplayed the likelihood of an immediate decision hinging on legislative timing, he acknowledged that momentum in Springfield matters. “If it isn’t obvious that the Senate is moving in the right direction, I think that will make it challenging,” Pritzker said.
The megaprojects legislation has expanded significantly as it moved through the House, growing from 38 pages to more than 370. The bill now includes a wide range of economic development initiatives across the state, in addition to provisions related to financing, labor, and large-scale construction projects like a potential stadium.
Pritzker noted the bill’s breadth could require further refinement. “You’ve got a bill that probably has too many items associated with it, or at least some that need amending,” he said.
A Senate spokesperson confirmed the chamber intends to take a measured approach, reviewing the legislation and incorporating feedback from lawmakers and stakeholders.
Also on the Senate’s agenda is a proposed constitutional amendment addressing redistricting. The measure is seen as a preemptive step in case the U.S. Supreme Court weakens or overturns provisions of the Voting Rights Act related to minority representation.
Because constitutional amendments must be read on three separate days before a vote, Thursday is the earliest the Senate could act. It may also be the last practical opportunity, as the deadline to place questions on the November ballot is Sunday.
Together, the two issues—one tied to high-profile economic development and the other to electoral representation—highlight a packed and consequential week for the Illinois Senate.
Swipe Fee Ban Faces Federal Pushback as State Defends Law
Governor JB Pritzker is defending Illinois’ new swipe fee ban as effective policy, even as federal regulators and banking groups move to block it before it takes effect.
At issue is the Illinois Interchange Fee Prohibition Act (IFPA), signed into law in June 2024 and scheduled to begin July 1. The law prohibits credit and debit card companies from charging interchange—or “swipe”—fees on the tax and tip portions of transactions.
Governor Pritzker said the state believes the law works as intended but acknowledged the federal government is now weighing in. “I don’t know about interference. I think they’re trying to figure out how to make the system work. We think that what was passed here works,” Pritzker said, adding he hopes federal officials ultimately act in the best interest of both consumers and businesses.
The Office of the Comptroller of the Currency (OCC), part of the U.S. Department of the Treasury, issued notice that it is considering preempting the Illinois law—effectively nullifying it and allowing the fees to continue.
The move follows earlier opposition from the OCC. In an October 2024 amicus brief, the agency called the IFPA “ill-conceived” and “largely unworkable,” warning it could increase fraud risk, limit consumer services, and erode public trust in the payment system.
The dispute is also playing out in court. The Illinois Bankers Association said oral arguments are scheduled for May 13 before the Seventh Circuit Court of Appeals, as industry groups appeal a February district court ruling that upheld the law.
Ben Jackson, the association’s executive vice president, argued the measure would harm smaller financial institutions. “Local banks and credit unions are small businesses, too,” Jackson said. “This is going to reduce their ability to provide access to credit and benefits to their communities.”
Opponents also point to compliance challenges. Illinois Credit Union League President and CEO Libby Calderone said the law requires the tax and tip portions of transactions to be processed without fees and imposes penalties of up to $1,000 per violation.
Supporters of the law, including the Illinois Retail Merchants Association, argue it provides relief to businesses by eliminating fees on portions of transactions that do not generate revenue.
The group also criticized the OCC’s preemption effort, saying regulators failed to fully explain their reasoning or allow for public input. “It’s clear the goal is an end run around the legal process after a judge recently upheld the law,” said IRMA President and CEO Rob Karr.
Illinois is currently the only state to pass a law banning swipe fees on taxes and tips, making the outcome of the legal and regulatory fight potentially significant beyond its borders. With a federal decision pending, a court challenge underway, and the July 1 implementation date approaching, the future of the law remains uncertain.
Governor’s Housing Push Cast as Critical to Illinois’ Future, Faces Local Pushback
Governor JB Pritzker is making an aggressive case that expanding housing supply is essential to Illinois’ long-term stability, framing a sweeping package of proposals as both an economic necessity and a way to break through local political gridlock.
Speaking at a City Club of Chicago luncheon, Pritzker said the state cannot afford to maintain the status quo as housing shortages grow. “When you run into people who are maybe opposed to this … ask them, ‘what are we going to do then?’” he said. “There really isn’t a good alternative.”
The governor’s “Building Up Illinois Developments” (BUILD) initiative is a multi-bill legislative package designed to reduce barriers to housing construction across the state. Supporters say it could reshape local zoning practices and significantly expand housing options, while critics argue it undermines local control without addressing the root causes of high costs.
The proposal comes as Illinois faces a housing shortage estimated at more than 140,000 units. Pritzker said the solution is incremental but widespread—adding housing “city by city, town by town, neighborhood by neighborhood.”
A key component of the plan would require communities to allow denser housing on residential lots, effectively mandating “gentle density” statewide. That could mean allowing up to four units on most residential lots, with higher limits for larger parcels. Supporters argue the state-level approach gives local officials political cover to act where local opposition has stalled change.
Real estate professionals described the plan as a framework that still leaves zoning in local hands, but within statewide standards. “It’s the state stepping up to stand with local leaders so they don’t have to stand alone.”
Some local officials agree, saying state action could reduce the political friction around zoning debates, calling it the “most sensitive” issue facing local governments.
Opposition has been sharp, particularly from municipal leaders and community groups who argue the plan overrides local decision-making.
Romeoville Mayor John Noak told lawmakers that preempting local authority will not meaningfully reduce housing costs. “Preemption certainly will not do enough to address those costs,” Noak said, pointing instead to factors like insurance and construction expenses. He also warned that reducing development fees could shift costs onto homeowners through higher property taxes.
The Illinois Municipal League has also raised concerns, with CEO Brad Cole urging a more collaborative approach. “We would much prefer the carrot to the stick. This is all stick,” he said.
Even within the legislature, there is some hesitation. Sen. Bill Cunningham suggested a one-size-fits-all mandate may not work for every community. “Maybe it doesn’t make sense for us as a state to say to a municipality, ‘You need to do all 10 of these things,’” Cunningham said.
The BUILD initiative is moving through Springfield as a series of bills, several of which were the subject of a lengthy Senate Executive Committee hearing. Together, they aim to streamline development, reduce costs, and expand allowable housing types:
- SB 4063 – Sets deadlines for permit reviews and inspections and allows third-party reviewers if municipalities miss those deadlines.
- SB 4060 – Requires larger residential lots to allow additional housing types such as duplexes, fourplexes, and cottage clusters.
- SB 4064 – Reduces or eliminates mandatory parking minimums that increase development costs.
- SB 4061 – Allows certain multi-family buildings (up to six stories) to be built with a single stairwell, lowering construction costs.
- SB 4071 – Permits accessory dwelling units (ADUs) on residential properties.
- SB 4062 – Standardizes how impact fees are calculated using a statewide formula to improve transparency and predictability.
Governor Pritzker has tied the proposal not just to housing availability but to broader economic and demographic trends, noting that high housing costs disproportionately affect older residents and that housing inventory has dropped sharply in recent years. “Our failure to build is in part due to restrictive statutes and regulations in towns, cities and counties,” he said during a separate AARP Illinois tele-town hall.
Whether the legislature ultimately adopts the full package or a scaled-down version, the debate is already reshaping conversations at both the state and local level—elevating zoning reform from a niche issue to a central policy question about Illinois’ growth, affordability, and governance.
Bill Updates
House advances redistricting amendment
Illinois voters could see a constitutional amendment on the ballot this fall after the House approved a proposal aimed at preserving minority representation in legislative maps. The measure establishes a priority framework lawmakers must follow when drawing districts, anticipating potential changes to federal Voting Rights Act protections.
Millionaires tax stalls
A proposed “millionaires tax” appears effectively dead for this election cycle. The House did not call the constitutional amendment for a vote, and with lawmakers not scheduled to return before the May 3 ballot deadline, it is increasingly unlikely the measure will go before voters in November.
Data center water use in focus
Lawmakers are pushing for greater transparency around water usage by data centers, particularly large “hyperscale” facilities that support artificial intelligence. The issue surfaced during the third and final House Executive Committee hearing on data centers, where undisclosed water consumption was cited as a recurring concern.
Tech Policy Discussions
While no major tech legislation has passed either chamber, several high-profile issues remain under active negotiation in the General Assembly:
(1) data centers, (2) personalized pricing, (3) AI regulation, and (4) data privacy.
In the Senate, all four topics were addressed during a marathon subject matter hearing earlier this month. Despite its length, the breadth of issues limited deeper discussion on each.
In the House, most work has occurred outside formal hearings. There have been no public hearings on AI regulation or data privacy, with those topics handled through working groups and ongoing stakeholder negotiations. Lawmakers did conclude a series of hearings on data centers and briefly addressed pricing policy during consideration of HB 4248 in the Consumer Protection Committee.
For now, most substantive movement on these issues continues behind the scenes.
Personalized / Surveillance Pricing
Legislation regulating personalized pricing continues to evolve:
- SB 2255 would broadly restrict or ban many forms of personalized pricing, though critics argue it mischaracterizes common practices like loyalty programs and digital product pricing.
- HB 4248 (as amended) takes a different approach, allowing consumers to opt out of personalized pricing while carving out multiple exemptions.
- HB 5756 (newly filed) further refines the concept, focusing on enforcement and clarifying when violations would trigger action under the Consumer Fraud and Deceptive Business Practices Act.
Stakeholder feedback remains ongoing as lawmakers weigh competing approaches.
Data Centers
No data center-specific legislation has advanced this session, but the issue remains active.
The House Executive Committee completed a three-part hearing series covering:
- Local impacts
- Energy usage
- Water consumption
Attention is now shifting to broader legislative frameworks, including proposals that may incorporate elements of the “Power Act” (SB 4016 / HB 5513).
AI Regulation
Lawmakers continue to explore a wide range of proposals under the umbrella of AI regulation, including:
- Oversight of advanced or “frontier” AI models
- Requirements for chatbot transparency
- Disclosure rules for AI-generated content
Senate leadership is reviewing bills discussed during the recent subject matter hearing, though it remains unclear whether legislation will move as individual bills, a broader omnibus package, or through a “shell” bill approach.
Data Privacy
Negotiations are ongoing over a comprehensive health data privacy proposal modeled in part on Washington state’s My Health My Data Act.
Key concerns include:
- A private right of action (PRA)
- Increased litigation risk for Illinois businesses
Talks are continuing among business groups, the American Civil Liberties Union, and bill sponsors.
- SB 2273 has received multiple deadline extensions in the Senate.
- HB 3494 remains on second reading in the House as negotiations continue.
Stakeholder engagement remains active, with discussions expected to continue through the end of May.
Transit Agencies Target Safety & Service with First Wave of New Funding
The region’s transit agencies are preparing to invest a significant share of new funding into safety and service improvements, as officials outline how the first tranche of revenue from a major state transit overhaul will be spent.
At a Thursday board meeting, the Regional Transit Authority (RTA) said more than half of roughly $300 million in anticipated new funding will go toward boosting security and improving service across the Chicago Transit Authority (CTA), Metra, and Pace systems. Both priorities were identified by riders in recent surveys.
The funding stream begins June 1, when the RTA transitions into the Northern Illinois Transit Authority (NITA), a new governing body with expanded authority. The revenue will come from a 0.25% increase in the regional sales tax and a redirection of 5% of the state’s gas sales tax to transit.
Security spending takes the lead
A substantial portion of the initial funding will go toward public safety efforts:
- $20 million will extend funding for Chicago police officers assigned to patrol the CTA through the end of the year. About 180 officers currently participate in the department’s voluntary overtime transit unit.
- $10 million will support expanded K-9 patrols across the CTA system.
- $12 million will fund the Cook County Sheriff’s Office presence on the CTA Red Line, part of a broader safety initiative launched earlier this year.
- $2.5 million will establish a regional public safety task force to develop a long-term transit security strategy, as required under the NITA law. The group may also evaluate whether to create a dedicated transit police force.
On the commuter rail system, nearly $4 million will go toward expanding Metra’s police force, including 14 new officers and additional supervisory staff, along with body cameras and enhanced late-night security on the BNSF line.
Service and rider experience improvements
In addition to safety, the plan dedicates tens of millions to improving reliability and rider experience:
- $10 million to address CTA “slow zones”
- $10 million for railcar maintenance
- $3 million to improve bus reliability on 35 routes
- $1 million to expand automated bus lane enforcement
The RTA is also allocating more than $5 million to modernize signage and provide real-time updates on elevator availability across all three systems.
Another $10 million will expand a Metra reduced-fare pilot program for low-income riders using CTA and Pace services.
What’s next
The board is expected to vote next month on amendments to its 2026 budget to formally incorporate the new funding. The transition to NITA—and the associated funding changes—stems from legislation approved in Springfield last fall and signed by Gov. JB Pritzker in December.
Together, the investments mark the first major deployment of new transit funding in the region, with an early focus on rebuilding rider confidence through safer, more reliable service.
SBA Offers Disaster Relief to Illinois Businesses, Private Nonprofits and Residents Affected by Severe Storm and Tornado
U.S. Small Business Administration (SBA) announced the availability of low interest federal disaster loans for Illinois businesses, private nonprofits, and residents affected by severe storm and tornado occurring on March 10. The SBA issued a disaster declaration in response to a request received from Governor J.B. Pritzker on April 7.
The declaration covers the Illinois counties of Ford, Grundy, Iroquois, Kankakee, Livingston, and Will, as well as the Indiana counties of Lake and Newton which are eligible for both Physical Damage Loans and Economic Injury Disaster Loans (EIDLs) from the SBA.
Businesses and private nonprofits are eligible to apply for business physical disaster loans and may borrow up to $2 million to repair or replace disaster-damaged or destroyed real estate, machinery and equipment, inventory, and other business assets.
Homeowners and renters are eligible to apply for home and personal property loans and may borrow up to $100,000 to replace or repair personal property, such as clothing, furniture, cars, and appliances. Homeowners may apply for up to $500,000 to replace or repair their primary residence.
Applicants may also be eligible for a loan increase of up to 20% for their verified physical damage for mitigation purposes. Eligible mitigation improvements may include strengthening structures to protect against high wind damage, upgrading to wind rated garage doors, and installing a safe room or storm shelter to help protect property and occupants from future damage.
“When disasters strike, SBA’s Disaster Loan Outreach Centers play a vital role in helping small businesses and their communities recover,” said Chris Stallings, associate administrator of the Office of Disaster Recovery and Resilience at the SBA. “At these centers, SBA specialists assist business owners and residents with disaster loan applications and provide information on the full range of recovery programs available.”
SBA’s EIDL program is available to small businesses, small agricultural cooperatives, and private nonprofit (PNP) organizations with financial losses directly related to the disaster. The SBA is unable to provide disaster loans to agricultural producers, farmers, or ranchers, except for small aquaculture enterprises.
EIDLs are for working capital needs caused by the disaster and are available even if the business did not suffer any physical damage. They may be used to pay fixed debts, payroll, accounts payable, and other bills which could not be paid due to the disaster. Interest rates are as low as 4% for businesses, 3.625% for PNPs, and 2.875% for homeowners and renters, with terms up to 30 years.
Interest does not begin to accrue, and payments are not due, until 12 months from the date of the first loan disbursement. The SBA sets loan amounts and terms, based on each applicant’s financial condition.
Beginning Friday, April 10, SBA customer service representatives will be at the Disaster Loan Outreach Center in the primary county of Kankakee to answer questions about SBA’s disaster loan program, explain the application process and help individuals complete their application. Walk-ins are welcome, but you can schedule an in-person appointment in advance at appointment.sba.gov.
To apply online, visit sba.gov/disaster. Applicants may also call SBA’s Customer Service Center at (800) 659-2955 or email disastercustomerservice@sba.gov for more information on SBA disaster assistance. For people who are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services.
The filing deadline to return applications for physical property damage is June 8. The deadline to return economic injury applications is Jan. 11, 2027.
Stay well,
Mike Paone
Executive Vice President
Joliet Region Chamber of Commerce & Industry
mpaone@jolietchamber.com
815.727.5371 main
815.727.5373 direct