Government Affairs Roundup
“Your Timely Roundup of Local, State, and Federal Updates”
Chamber members:
Today’s update is just a short one (topic wise) as the last two were info packed. One more reminder about hearing firsthand what happened in the most recent legislative session. Join us for a member breakfast titled: Illinois Legislative Update – Budget and Beyond with local State Senators Ventura and Loughran Cappel as well as State Representatives Walsh Jr., Avelar, and Manley. This will take place next Wednesday, June 24 at the Holiday Inn & Suites Joliet Southwest.
*Government Affairs Roundup brought to you by CITGO*
Rising Inflation
Inflation rose to 4.2 percent in May, marking its highest level in three years, driven largely by increases in energy and other goods tied to the ongoing Iran conflict, according to data released Wednesday by the Department of Labor.
The consumer price index (CPI), a widely used measure of inflation, climbed 4.2 percent over the past 12 months and increased 0.5 percent in May alone. This aligns with Wall Street expectations and represents the first time inflation has exceeded 4 percent since May 2023, reaching its highest level since April of that year.
Energy prices were a major contributor, rising 3.9 percent in May following increases of 3.8 percent in April and 10.9 percent in March. These gains accounted for more than 60 percent of the overall monthly increase in the CPI. The Energy Information Administration reported that average gas prices reached $4.49 in mid-May, up from $4.09 in mid-April. Prices have since eased slightly, with AAA reporting a national average of $4.15 in June.
Fuel costs have continued to climb as U.S.-Iran peace talks remain stalled and recent exchanges threaten a fragile two-month ceasefire. Meanwhile, the food index increased 3.1 percent over the past year, including a 0.2 percent rise in May. All other items also rose by nearly 3 percent over the past year, with a similar 0.2 percent increase last month.
These latest figures are unlikely to ease concerns about the rising cost of living, which continues to be a growing issue for many Americans, according to recent polling.
Chances of a Special Session
Governor JB Pritzker says he is open to calling a special legislative session to revive stalled negotiations over a new Chicago Bears stadium, but made clear the team shares the blame for the lack of progress.
Speaking to reporters, Governor Pritzker said confusion around the Bears’ plans and a failure to effectively navigate the legislative process ultimately derailed momentum before lawmakers adjourned their spring session. He emphasized that the timing of the team’s request for tax incentives also worked against them, as legislators remained focused on affordability issues facing residents.
“The number one thing is not providing a multi-billion dollar stadium for a professional team, but instead meeting the needs of everyday folks,” Pritzker said at an unrelated event.
The governor pointed to several “fumbles” by the organization, including an early press conference with Chicago’s mayor that outlined ambitious plans before they had been fully vetted. Ongoing uncertainty about the stadium’s location, whether in Chicago, Arlington Heights, or even Hammond, Indiana, added to the confusion.
Governor Pritzker also criticized the team for not being fully engaged during the final days of session, when major deals are typically negotiated. “You’ve got to talk to every legislator if you want to get something done,” he said.
Despite the setbacks, Pritzker reiterated that Illinois remains committed to keeping the Bears in-state and confirmed that discussions are ongoing. He added that he would consider a special session once a more unified plan is in place.
Republican lawmakers are advancing alternative proposals. State Rep. Dan Ugaste has introduced the Major Economic Development and Property Tax Relief Act, aimed at creating a framework for large-scale development projects while addressing property tax concerns. Meanwhile, State Rep. Martin McLaughlin is drafting the Taxpayer Investment Protection Act, which he says would offer a more structured and fiscally responsible alternative to the current stadium proposal.
Official Press Release on FY 27 Budget Highlights from the Office of the Governor
The Fiscal Year 2027 General Funds budget is a $55.9 billion plan centered around making Illinois more affordable for working families, protecting long-term stability, and fulfilling core obligations as Illinois navigates federal actions that are driving up prices and fueling national uncertainty.
The Fiscal Year 2027 budget package includes House Bill 111 (Fiscal Year 2027 appropriations), House Bill 2949 (Fiscal Year 2027 Budget Implementation bill), Senate Bill 3019 (Revenue bill), House Bill 5196 (Pension Acceleration Program), Senate Bill 3365 (Medicaid Omnibus), House Bill 862 (Efficiencies Bill), and Senate Bill 3255 (Fiscal Year 2027 Bond Authorization bill).
Highlights from the budget package include:
COMMITMENT TO FISCAL RESPONSIBILITY – 8th Balanced Budget
This budget builds on seven years of historic fiscal progress with eight balanced budgets, 10 credit rating upgrades, elimination of the bill backlog, and a forecasted balance of nearly $2.7 billion in the State’s Budget Stabilization Fund (“rainy day” fund) by the end of Fiscal Year 2027.
Deposits an estimated $197 million for the Budget Stabilization Fund during Fiscal
Year 2027, following a deposit of $161 million in Fiscal Year 2026.
Advances pieces of the Governor’s Path to Full Pension Funding by extending Illinois’ pension buyout program for two years and directing surplus refund reserve funds above $150 million annually toward accelerating pension debt reduction and lowering long-term liabilities.
Uses of a portion of the State’s BRIDGE Fund to finance the FRESH (Families Receiving Emergency Support for Hunger) program, which will provide one-time $400 cash assistance to those kicked off the SNAP food assistance program by the federal government.
EDUCATION:
Early Childhood Education:
The Fiscal Year 2027 budget provides continued funding for the fourth year of the Governor’s Smart Start Illinois early childhood initiative, which includes:
$748 million in the Early Childhood Block Grant to continue the Smart Start Illinois plan, which extends access to support services and high-quality preschool slots for families with children up to age 3 and have resulted in more than 11,000 new seats since Fiscal Year 2023.
$200 million investment in funding for Early Childhood Workforce Compensation Grants to continue to stabilize operational funding and promote quality in the childcare system. The contract funding model stems from recommendations made by the Early Childhood Funding Commission.
$55 million in additional funding for the Child Care Assistance Program (CCAP) to support provider rate increases and a caseload level of up to 155,000 children (provided no federal funding changes).
$15 million increase for Early Intervention programs to support timely services for families.
The first year of full operational and programmatic funding for the new Illinois Department of Early Childhood (IDEC), which will consolidate early childhood programs such as the Child Care Assistance, Early Intervention, Home Visiting, and Maternal and Child Health programs, as well as daycare licensing and the Early Childhood Block Grant, into one agency.
K-12 Education
$350 million investment in the Evidence-Based Funding (EBF) Formula to achieve the statutory target for annual funding increases — including $50 million for the Property Tax Relief Grant (PTRG) program. This investment brings the total EBF program to $9.3 billion, a $2.5 billion increase to the annual funding level during the Pritzker Administration.
$68 million increase, for a total of $1.2 billion, in grants for Mandated Categorical Programs (MCATs):
o Fully funds the Special Education-Orphanage Tuition and the Regular Orphanage budget lines to ensure claims are 100% funded for the education
of students who are primarily under the care and custody of the Department of Children and Family Services (DCFS) guardianship administrator.
o Increases the available funding for Special Education Transportation reimbursements by $20 million, for Special Education Tuition by $20 million,
and for Regular/Vocational Transportation expenses by $10 million, plus $35 million in new funding at the Illinois Department of Transportation (IDOT) to
support mass transit costs related to student transportation needs.
o Nearly triples the available funding for the Illinois Free Lunch and Breakfast program by $17 million.
$15 million for the fourth year of funding for the Teacher Vacancy Grant Pilot program.
$1.5 million for implementation of the Illinois Comprehensive Literacy and Numeracy Plan to provide tools, support, and resources to align educator training and student instruction.
$30 million for After School Programing, plus a separate $8 million for After School Matters.
Higher Education:
$721.6 million to maintain the Monetary Award Program (MAP) funding level, representing a $320 million (80%) increase for MAP since 2019.
$16 million (1%) general funds increase for operating costs of public universities ($13 million) and community colleges ($3 million) to invest in both students and institutions of higher education.
$3 million to support Common App simplified admissions across institutions of higher learning.
$2 million to continue funding the Diversifying Higher Education Faculty in Illinois (DFI) program at Fiscal Year 2026 levels to provide holistic support to
graduate students, in addition to their fellowship stipends.
$10.75 million for Golden Apple Scholars and $5 million for Golden Apple Accelerators.
$7 million for Prepare for Illinois’ Future test preparation program.
HEALTH AND SOCIAL SERVICE PROGRAMS:
Illinois Department of Human Services (IDHS)
$55 million to hire 450 additional staff and update eligibility determination systems for the Supplemental Nutrition Assistance Program (SNAP) and Medicaid to comply with federal changes regarding eligibility and work requirements imposed by H.R.1.
$263.7 million in general funds for Home Illinois. In combination with other resources, the Home Illinois program funds services and supports, including:
o $81.5 million to support shelters and other services for homeless populations.
o $62.3 million for supportive housing, homelessness prevention services, shelter diversions, addressing racial disparities, and access to counsel.
o $50 million for court-based rental assistance.
o $42 million for emergency and transitional housing.
o $25 million for Rapid Rehousing services for short-term rental assistance and targeted support services.
$149.6 million increase for the Division of Developmental Disabilities to support Direct Service Provider (DSP) rate increases and new community placements.
$82.6 million Home Services Program increase for liability and caseload growth, bringing the investment to $1.2 billion. Department of Healthcare and Family Services (HFS)
$5 million Fiscal Year 2026 supplemental appropriation to provide continued support for the wildly successful Medical Debt Relief Pilot Program.
$350 million for the new federal Rural Healthcare Transformation Fund program.
$85 million for the new Distressed Hospital Loan Program. Department of Children and Family Services (DCFS):
$19.8 million increase to help DCFS providers by addressing reimbursement rates to maintain a competitive wage structure.
$3.7 million increase for the DCFS scholarship program, which will serve 1,381 youths in Fiscal Year 2027.
$33 million to enhance support for relative caregivers through a nation-leading relative certification model and support for increased guardianship and adoption subsidies.
$35 million for Comprehensive Community-Based Youth Services, a program of intervention services for at-risk youth that will transition from the Department of Human Services in Fiscal Year 2027.
Department of Public Health (IDPH):
• $14 million for the Office of Health Care Regulation to hire an additional 61 staff for licensing, inspecting, and certifying that healthcare facilities are compliant with regulations.
• $18 million to support reproductive health initiatives, including patient services, provider training, and specialty consultations. Maintains funding for the Breast and Cervical Cancer Program and the AIDS Drug Assistance Program.
• Increases funding for newborn screenings to accommodate new requirements.
Department on Aging (Aging):
$161.8 million increase for the Community Care Program (CCP) for caseload and utilization growth and to annualize the January 1, 2026, $1.17/hour rate increase for in-home providers.
$3.3 million increase in funding for the Adult Protective Services (APS) program.
PUBLIC SAFETY AND VIOLENCE PREVENTION:
$111 million to maintain funding for services for Reimagine Public Safety to help reduce gun violence in Illinois communities through the following:
o Violence Prevention Programs
o High-Risk Youth Prevention
o Youth Development Programs
Illinois Emergency Management Agency and Office of Homeland Security
(IEMA-OHS):
$10 million for the Homeland Security Preparedness and Response Grant Program.
$5 million for another round of funding for the Illinois Nonprofit Security Grant
Program.
Illinois Department of Corrections (IDOC):
$103 million increase for personal services at all 28 correctional facilities and to hire additional administrative staff and 100 additional correctional officers to relieve overtime pressures.
$31 million to support the implementation of an electronic health record system.
$20 million for annual repair and maintenance expenses to avoid costly repairs and prevent adding to the deferred maintenance backlog.
Illinois Department of Juvenile Justice (IDJJ):
$12 million increase to support onboard staff and to hire an additional 65 staff to maintain mandated staffing ratios.
$5 million increase for IYC Lincoln to support operational expenses and to hire additional juvenile justice specialists and educators to serve additional youths at the new center.
$2.6 million for annual repair and maintenance expenses to avoid costly emergency repairs and help prevent adding to the deferred maintenance backlog.
$1.9 million increase for contractual healthcare services and increased programming.
Illinois State Police (ISP):
$2 million to support two new cadet classes to hire and train 100 additional sworn Troopers.
$9.7 million for expenses related to STARCOM infrastructure and equipment.
$4 million for annual repair and maintenance expenses to avoid costly repairs and prevent adding to the maintenance backlog.
ECONOMIC DEVELOPMENT:
Department of Commerce and Economic Opportunity (DCEO):
$50 million for Area Career Centers capital grant program for facility modernization and program enhancements to create seamless, high-quality
educational and career pathways.
$20 million for Manufacturing Training Academies (MTA) capital grants to provide funds for workforce training partnerships with community colleges and
private industry.
$20 million for Illinois Works Pre-Apprenticeship Program to continue investing in the State’s workforce development pipeline and train qualified, diverse candidates ready to enter the workforce in construction and building trades.
$35 million capital investment in the Rebuild Illinois Downtowns and Main Streets program to revitalize business corridors and support small businesses.
$200 million for public infrastructure capital grants to strengthen and modernize roads and bridges, sewer and water mains, and public transportation.
$100 million investment in Site Readiness Illinois (SRI) to advance critical capital infrastructure improvements and ensure Illinois remains competitive for large-scale domestic and international projects.
$65 million investment in Prime Sites funding to support companies relocating to or expanding operations in Illinois to assist with large scale capital investment projects.
ENVIRONMENTAL, NATURAL, AND CULTURAL RESOURCES:
Illinois Environmental Protection Agency (IEPA):
$14 million for electric vehicle (EV) rebates, encouraging the use of EVs to improve air quality in Illinois.
$5 million increase to support the Brownfields Redevelopment Grant Program.
$2 billion in capital appropriations for new and reappropriated funding for IIJA water infrastructure programs, including:
o $110 million for opportunities to address emerging contaminants in small and disadvantaged communities to confront per- and polyfluoroalkyl
substance (PFAS) pollution.
o $1.2 billion in funding for Lead Service Line Replacement. Illinois Department of Natural Resources (IDNR):
$37.5 million to support the continued operation of key capital programs, such as Open Space Lands Acquisition and Development (OSLAD) grants.
$11 million for the repair and maintenance and other permanent improvements to historic sites and state parks.
Illinois Department of Agriculture (IDOA):
$8.4 million to support the Weights and Measures Division.
$275,000 for a Soil Health Assessment per PA 103-0494.
$32.8 million in funding for the industrial hemp, adult-use, and medicinal cannabis division to support the permanent testing facility in Central Illinois to help regulate the State’s cannabis cultivation, craft grower, infuser, and transportation industries.
$4.5 million commitment for grants to Soil and Water Conservation Districts.
$11 million deposit into the State Cooperative Extension Trust Fund to support University of Illinois extension programs.
CAPITAL AND TRANSPORTATION FUNDING:
$1.4 billion in new funding for deferred maintenance at state facilities, universities, and community colleges.
$1 billion for deferred maintenance at state facilities.
$300 million for deferred maintenance at universities.
$100 million for deferred maintenance at community colleges.
$110 million to rebuild the residential complex at the Illinois Mathematics and Science Academy.
$5.6 billion for the annual Road Program.
$5.3 billion from pay-as-you-go funds.
$500 million for a downstate IDOT road and bridge construction program (outside of District 1).
$300 million for grants to economically distressed communities for transportation infrastructure projects.
$200 million for grants to municipalities, counties, townships, and road districts for transportation infrastructure related to large-scale economic
development projects.
$35 million for a new grant program to downstate transit districts providing transportation services to public school students.
$20 million for reduced fares to downstate public-school students.
$15 million for public school transportation pilot programs.
$97 million for renovation at DMA’s General Jones Armory and completion of the new Peoria Readiness Center.
$110 million for continued ERP implementation and technology modernization initiatives.
$100 million for the expansion of the water loan programs at IEPA.
Stay well,
Mike Paone
Executive Vice President
Joliet Region Chamber of Commerce & Industry
mpaone@jolietchamber.com
815.727.5371 main
815.727.5373 direct