Government Affairs Roundup
“Your Timely Roundup of Local, State, and Federal Updates”
Chamber members:
I hope all of you weathered the storm on Monday as it unfortunately interrupted our golf outing. I’m sure we’ll be seeing information in the near future about potential disaster relief for those impacted just as I’m running again information today about assistance for the June 11 storm.
Three items to share story wise today in the roundup and another reminder about our upcoming August luncheon.
If you haven’t done so already, mark your calendar for August 27 as we welcome Joliet Mayor Terry D’Arcy to deliver his annual State of the City address at The Renaissance Center. Reservations are open – https://members.jolietchamber.com/events/details/2026-member-lunch-august-27-state-of-the-city-address-with-mayor-terry-d-arcy-7841
*Government Affairs Roundup brought to you by CITGO*
Governor Signs New School Cell Phone Ban Law
As Illinois students return to classrooms this fall, school districts and families will begin the process of developing and implementing new cell phone policies under a statewide law requiring schools to limit student phone use throughout the school day.
Governor J.B. Pritzker signed the legislation Tuesday at Elgin High School, where the district had already implemented its own cell phone restrictions during the previous school year.
The new policy will take effect beginning with the 2027–2028 school year, giving school districts time to develop and customize their phone storage, communication, and enforcement plans. On September 1, the Illinois State Board of Education will release a template to help guide community discussions and assist districts in creating their policies. Under the requirements, elementary and middle schools (K–8) must adopt a strict “bell-to-bell” cell phone ban, limiting student access from the first arrival bell until final dismissal, including during lunch and passing periods.
High schools will be required to restrict phone use during instructional time but will have flexibility to decide whether students may use phones during breaks or lunch. The law also limits enforcement measures, prohibiting districts from using suspensions, expulsions, fines, or fees as penalties for violating phone policies.
The new law requires school boards to adopt policies that meet minimum state standards but gives districts flexibility in determining how the rules will be enforced. School boards will have the remainder of the school year to develop and approve policies that comply with the new requirements.
“Students are distracted. Teachers sometimes have trouble getting students’ attention. Principals are experiencing disruption that smartphones create throughout the school day,” Pritzker said. “Parents have been concerned and have seen cyberbullying and, of course, the mental health impact that social media and phone usage are having on our kids.”
The legislation does not provide state funding to help districts implement the restrictions, a challenge that has occurred in other states that have adopted similar policies. Some districts have purchased products such as magnetic locking pouches to secure phones during the school day.
Supporters of the legislation said Illinois’ approach differs from some other states because it allows communities and school districts to shape policies that work best for their students.
“The bill does encourage community participation in the development of their cell phone policy, and that is something that the school district will have to determine for itself — if they think that it is better to go bell to bell or if they would like to add a little flexibility,” said Rep. Michelle Mussman, D-Schaumburg.
Sen. Christina Castro, D-Elgin, introduced the legislation after it was identified as a priority by Pritzker during his annual budget address earlier this year.
The proposal moved gradually through the General Assembly before advancing during the final week of the spring session, when lawmakers made changes regarding the timeline and implementation requirements.
The final law includes several exceptions. High school students participating in dual-credit courses or other off-campus programs may use phones when necessary for those activities. Districts may also decide whether to allow high school students to use phones during passing periods or lunch. Students with individualized education programs (IEPs) or other specific needs may receive additional accommodation.
As districts begin preparing for the new requirements, school officials will be tasked with balancing classroom focus and student safety while creating policies that reflect the needs of their individual communities.
Economic Impact Report Shows IDOT and Illinois Tollway Capital Programs Deliver Billions
Major transportation investments by the Illinois Department of Transportation (IDOT) and the Illinois Tollway have generated significant economic activity across the state, according to new studies examining the impact of two of Illinois’ largest infrastructure programs.
A report from the Illinois Economic Policy Institute found that the state’s Rebuild Illinois capital program has generated an estimated $1.79 in economic activity for every dollar invested. A companion analysis of the Illinois Tollway’s nearly completed Move Illinois capital program found an even higher return, generating slightly more than $2 in economic activity for every dollar invested.
The studies provide a measure of the broader economic benefits of infrastructure spending, including construction activity, supply chain impacts, and increased consumer spending by workers directly and indirectly supported by the projects. The findings also offer a counterpoint to frustrations often associated with major road construction, including traffic delays, construction zones, and the tax and toll increases used to fund improvements.
The Rebuild Illinois program was approved in 2019 as part of the state’s first comprehensive capital plan in decades. The plan was largely funded through an increase in the state motor fuel tax, which doubled from 19 cents to 38 cents per gallon. Annual inflation adjustments have since increased the tax to 48.3 cents per gallon.
The new transportation funding sources generated approximately $2 billion in additional annual revenue in fiscal year 2021, growing to $3.1 billion by 2025. Those sources now account for about 52% of transportation revenue generated statewide.
Over the past six years, nearly $31 billion has been invested through Rebuild Illinois. The study estimates the program has produced an average of $9.2 billion in annual economic activity, while supporting approximately 39,200 jobs, including 21,600 construction-related positions.
The report also estimates Rebuild Illinois has generated about $169 million annually in local tax revenue and $231 million annually in state tax revenue.
The Illinois Tollway’s Move Illinois capital program, launched in 2012, has also produced significant economic benefits, according to the analysis.
The report estimates the Tollway has invested $14.1 billion through the program, generating approximately $28.3 billion in economic output and $1.22 billion in state and local tax revenue. The program is now about 87% complete.
Researchers highlighted the importance of having a dedicated transportation funding source, particularly for heavily traveled corridors. The report noted that Illinois Tollway roads remain among the state’s highest-performing transportation assets, with IDOT data showing 100% of Tollway lane miles rated in acceptable condition, compared with 76% statewide.
Additionally, about 47% of Tollway lane miles are considered in “excellent” condition, compared with 35% across the remainder of the state highway system.
The studies suggest that while large-scale transportation projects can bring short-term disruptions, long-term investments in roads and infrastructure can generate substantial economic returns through job creation, improved mobility, and stronger regional economic activity.
Cryptocurrency Group Sues State Regarding Digital Asset Tax
A national cryptocurrency industry advocacy group is challenging Illinois’ newly enacted digital asset tax, arguing the law unfairly targets blockchain-based transactions and creates a different tax treatment for assets that are otherwise economically identical.
The Washington, D.C.-based Digital Chamber, which represents more than 250 blockchain industry members, filed a lawsuit in Sangamon County Circuit Court seeking to block implementation of the tax, which was approved by lawmakers during a late-night budget session on May 31.
The new law imposes a 0.2% tax on the value of digital asset trades conducted by Illinois-based brokers and is scheduled to take effect Jan. 1. State officials estimate the tax will generate approximately $60 million in revenue.
The lawsuit argues Illinois is creating a new tax burden based solely on how an asset is recorded and transferred, rather than the underlying value of the asset itself.
“Illinois has enacted the nation’s first tax that imposes materially different tax consequences on economically identical property solely because ownership is recorded and transferred using blockchain technology,” the lawsuit states. “Illinois has not taxed a new kind of property; it has taxed an old kind of property recorded in a new way.”
The Digital Chamber argues the law does not distinguish between profitable and unprofitable transactions, meaning brokers could owe taxes even when a trade results in a loss or simply involves transferring ownership of a digital asset.
“Taxes should be carefully considered, not only for the revenue they produce but for the fairness of those being taxed,” Digital Chamber CEO Cody Carbone said in a statement. “That was not the case here, as the provision slipped into legislation the night before the bill’s final consideration.”
The Illinois Department of Revenue said it was too early to comment on the legal challenge. “The suit was just filed and any comments at this time would be premature,” department Director David Harris said in a statement. The Illinois attorney general’s office did not respond to a request for comment.
The lawsuit comes as Illinois’ cryptocurrency sector is gaining momentum, with Chicago-based trading firms such as DRW and Jump Trading positioned to benefit from increased market activity, evolving technology, and a more favorable federal regulatory environment.
Industry leaders, however, argue the new tax could undermine Illinois’ efforts to become a hub for digital asset innovation. Don Wilson, founder and CEO of DRW, has criticized the tax proposal, saying it could discourage cryptocurrency businesses from operating in Illinois. Wilson has said the tax is more than twice the profit his firm earns from providing liquidity to cryptocurrency markets.
The Digital Chamber’s lawsuit compares the digital asset tax to previous technological shifts in commerce, arguing governments have historically adapted tax systems without imposing different treatment on the same type of property because of changes in technology.
“Technological innovation has repeatedly transformed the mechanisms through which commerce is conducted,” the lawsuit states, citing examples including the transition from paper stock certificates to electronic systems, physical trading floors to electronic exchanges, and checks to digital payments.
The group argues blockchain technology represents a similar evolution and should not result in additional tax obligations.
The digital asset tax challenge is the latest in a series of lawsuits involving provisions lawmakers approved as part of recent state budget negotiations. Illinois is already facing a legal challenge from Kalshi over a new tax on prediction markets that also took effect July 1 as part of the state’s $55.9 billion budget package.
The state also continues to face opposition from the banking industry over its so-called swipe fee law, which limits credit card processing fees on taxes and tips. The law, originally scheduled to take effect earlier, has been delayed multiple times and is now set for implementation July 1, 2027, after additional federal regulatory developments.
SBA Disaster Declaration
The U.S. Small Business Administration (SBA) announced the availability of low-interest federal disaster loans for Illinois small businesses, private nonprofits, and residents affected by severe storms and tornadoes occurring June 11. The SBA issued a disaster declaration in response to a request received from Governor JB Pritzker on July 7.
The declaration covers the Illinois counties of Bureau, Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, LaSalle, Lee, Livingston, Marshall, McHenry, Putman, Will, and Woodford, as well as the Indiana County of Lake, which are eligible for both physical damage loans and Economic Injury Disaster Loans from the SBA.
Important Facts:
- It’s important to know that low-interest federal disaster loans are for HOMEOWNERS AND RENTERS, plus businesses of all sizes, and most non-profit organizations, including faith-based organizations.
- Interest Rates as low as 2.875% for Homeowners and Renters, 4% for Businesses, and 3.625% for Nonprofits, 15 to 30 Years Repayment Terms.
- No interest for 12 Months, No payment until the 12th month after initial disbursement of loan proceeds, and no collateral for loans under $50K
- The Deadline to apply for physical damage is September 8, 2026.
- The Deadline to apply for Economic Injury Disaster Loans (EIDL) is April 12, 2027.
- Several Disaster Loan Outreach Centers (DLOCs) were opened yesterday in the primary counties Cook and LaSalle to answer questions about SBA’s disaster loan program, explain the application process, and help individuals complete their application.
Beginning Wednesday, July 15, SBA customer service representatives will be on hand at the Disaster Loan Outreach Centers in the counties of Cook and LaSalle to answer questions about SBA’s disaster loan program, explain the application process, and help individuals complete their application. Walk-ins are welcome, and you can schedule an in-person appointment in advance at appointment.sba.gov.
The hours of operation are listed below:
COOK COUNTY
Disaster Loan Outreach Center
City Hall East Annex
2434 Vermont St.
Blue Island, IL 60406
Hours: Monday – Friday, 9 a.m. – 6 p.m.
Saturday, 10 a.m. – 2 p.m.
Closes permanently at 5 p.m. Thursday, July 30
COOK COUNTY
Disaster Loan Outreach Center
Alsip City Hall
4500 W. 123rd St.
Alsip, IL 60803
Hours: Monday – Friday, 9 a.m. – 6 p.m.
Saturday, 10 a.m. – 2 p.m.
Sunday – Closed
Closes permanently at 5 p.m. Thursday, July 30
COOK COUNTY
Disaster Loan Outreach Center
Chicago Public Library Pullman Branch
11001 S. Indiana Ave.
Chicago, IL 60628
Hours: Monday and Wednesday, 10 a.m. – 6 p.m.
Tuesday and Thursday, noon – 8 p.m.
Friday and Saturday, 9 a.m. – 5 p.m.
Closes permanently at 5 p.m. Thursday, July 30
COOK COUNTY
Disaster Loan Outreach Center
Chicago Public Library Thurgood Marshall Branch
7506 S. Racine Ave
Chicago, IL 6062
Hours: Monday and Wednesday, noon – 8 p.m.
Tuesday and Thursday, 10 a.m. – 6 p.m.
Friday and Saturday, 9 a.m. – 5 p.m.
Closes permanently at 5 p.m. Thursday, July 30
LASALLE COUNTY
Disaster Loan Outreach Center
Streator City Hall
204 S. Bloomington St.
Streator, IL 61364
Hours: Monday – Friday, 8 a.m. – 6 p.m.
Saturday, 8 a.m. – noon
Sunday – Closed
Closes permanently at 5 p.m. Thursday, July 30
- 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.
Stay well,
Mike Paone
Executive Vice President
Joliet Region Chamber of Commerce & Industry
mpaone@jolietchamber.com
815.727.5371 main
815.727.5373 direct