Government Affairs Roundup
“Your Timely Roundup of Local, State, and Federal Updates”
Chamber members:
We hosted a very informative breakfast this morning with Senators Loughran Cappel and Ventura, as well as Representatives Walsh Jr., Manley, and Avelar. They covered topics such as the Budget, Megaprojects, Swipe Fee delay, AI Regulation, Data Center incentives & the POWER Act, BUILD Act, Insurance Reform, Education Funding, and Childcare/Early Childhood Funding.
I’m sure you’ll see a recap story in a local publication as some reporters were there covering the event. Mark your calendars for what will be another informative event on July 15 as we welcome in Illinois Department of Transportation Secretary Gia Biagi as the featured speaker at our July Member Luncheon. You can rsvp here: https://members.jolietchamber.com/events/details/2026-member-lunch-july-15-idot-project-updates-with-gia-biagi-secretary-of-transportation-7833
*Government Affairs Roundup brought to you by CITGO*
Bipartisan Housing Package Clears Congress, Heads to President Trump
A sweeping bipartisan housing package is headed to President Donald Trump’s desk after winning overwhelming support in both chambers of Congress, marking one of the most significant housing policy agreements in recent years.
The U.S. House approved the legislation Tuesday by a 358-32 vote, with all opposition coming from Republican lawmakers. The bill was considered under a fast-track procedure known as suspension of the rules, which requires a two-thirds majority for passage. The Senate passed the measure Monday in an 85-5 vote.
Congressional leaders accelerated action on the package after negotiators unveiled a final agreement last week, capping months of negotiations between House and Senate lawmakers. The legislation seeks to address the nation’s housing affordability challenges by encouraging new residential construction, streamlining federal environmental review processes, and creating incentives for local governments to expand housing development.
A key provision of the bill ties certain federal grants to local efforts to increase housing supply, reflecting a growing bipartisan consensus that a shortage of available homes is a major driver of rising housing costs. The legislation also includes restrictions aimed at limiting large institutional investors from purchasing newly built single-family homes, an issue that generated significant debate during negotiations.
The agreement was led by House Financial Services Committee Chairman Rep. French Hill (R-Ark.) and Ranking Member Rep. Maxine Waters (D-Calif.), alongside Senate Banking Committee Chairman Sen. Tim Scott (R-S.C.) and Sen. Elizabeth Warren (D-Mass.).
“Housing affordability starts with supply, and this bill makes meaningful progress toward building more homes and lowering costs for American families,” Hill said ahead of the House vote.
With strong bipartisan backing in both chambers, the measure now awaits President Trump’s signature to become law.
Illinois Tollway Considers Major Rate Increase
The Illinois Tollway is considering a significant toll increase beginning next year, with rates for passenger vehicles rising by an average of 45 cents per trip and commercial vehicle tolls increasing by approximately 30%. Under the proposal, toll rates could also be adjusted every two years based on inflation.
Current toll rates vary depending on the roadway, vehicle type, and whether drivers use an I-PASS transponder, but generally range from 45 cents to $3 for passenger vehicles.
The proposed increase stems from legislation approved by state lawmakers last fall as part of a broader public transportation funding and reform package. While the law redirected some Road Fund revenues from highway construction to support public transit, it also authorized the Tollway to generate additional revenue for a new long-term capital improvement program. The measure emerged from negotiations among lawmakers, transportation officials, and labor groups seeking to bolster transit funding without significantly reducing investments in road infrastructure.
Governor Pritzker defended the Tollway’s proposal during a Tuesday appearance in Chicago, noting that toll rates have remained unchanged since 2012 despite years of inflation. He also emphasized that a substantial portion of Tollway traffic comes from out-of-state motorists and trucking companies.
“Many of the trucks, many of the cars that are traveling on our tollways are actually from out of state and going to other states, so they’re actually not Illinois companies and not Illinois individuals, and so that’s one of the considerations,” Pritzker said.
Revenue generated from the higher tolls would help fund a range of infrastructure projects across the Tollway system. Planned improvements include reconstruction of the I-88/I-355 interchange near the Tollway’s Downers Grove headquarters, a new interchange on I-294 at Irving Park Road near O’Hare International Airport, employee and parking access improvements along I-490, as well as systemwide resurfacing projects, bridge repairs, and technology upgrades.
Governor Pushes for Data Center Legislation During Fall Veto Session
Governor Pritzker is urging lawmakers to revisit data center policy when they return to Springfield for the fall veto session, signaling that issues surrounding tax incentives, energy consumption, and infrastructure costs remain a top priority for his administration.
The governor had sought legislative approval this spring to temporarily suspend Illinois’ data center tax incentive program amid growing concerns over the rapid expansion of large-scale facilities across the state. However, lawmakers declined to take up the proposal before adjournment. The issue has become increasingly contentious as communities from Joliet to Springfield grapple with the impact of proposed developments and as state leaders balance competing interests from organized labor, environmental advocates, and the technology industry.
Following the end of the legislative session, Pritzker issued an executive order directing the Illinois Department of Commerce and Economic Opportunity to stop processing new applications for data center tax incentives beginning July 1. The incentives, established in 2019, exempt qualifying facilities from paying sales taxes on servers and other equipment. Critics have questioned whether the governor has the legal authority to pause the program administratively without legislative action.
Speaking at a press conference Tuesday, Pritzker said he hopes lawmakers will address the issue during the veto session, scheduled for Nov. 17-19 and Dec. 1-3.
“We’re going to address the issue, I hope, in the veto session,” Pritzker said. “This is not a moratorium on data centers. What it is, is a pause. We’re asking data centers to pay up. We’re not going to subsidize them to do what they want to do.”
The governor also reiterated his desire for new regulations requiring data center operators to cover the costs associated with their substantial energy and water demands. Under his proposal, developers would be expected to help fund the power infrastructure needed to serve their facilities and implement water recycling measures.
The debate comes as Illinois and other states experience a surge in demand for data centers, driven largely by artificial intelligence and cloud computing. Some of the largest projects consume as much electricity as small cities, contributing to increased strain on the power grid and concerns about rising utility costs. Environmental groups have argued that data centers should bear the costs of additional generation and transmission infrastructure, preferably through investments in renewable energy sources.
At the same time, supporters contend that data centers are generating significant economic benefits. Construction of these facilities has become an important source of work for union labor at a time when commercial construction activity has slowed. Illinois’ existing incentive program also requires project labor agreements, ensuring that many of the jobs created are union positions.
“As Gov. Pritzker is aware, data centers are net revenue generators that provide Illinois billions of dollars in investment, create thousands of high-wage union jobs and help fund schools, public safety and tax relief,” said Brad Tietz, director of state policy for the Data Center Coalition.
Tietz warned that pausing incentives could discourage future investment in Illinois and undermine both economic development and labor protections tied to the current program.
With lawmakers expected to revisit the issue later this year, the debate over how to balance economic growth, energy reliability, environmental concerns, and taxpayer incentives is likely to remain a major policy discussion heading into the fall.
Stay well,
Mike Paone
Executive Vice President
Joliet Region Chamber of Commerce & Industry
mpaone@jolietchamber.com
815.727.5371 main
815.727.5373 direct