Government Affairs Roundup
“Your Timely Roundup of Local, State, and Federal Updates”
Chamber members:
I mentioned a few weeks back about a partnership we’ve developed with the Federal Reserve Bank of Chicago. Today I’m sharing an opportunity to provide feedback as part of the Federal Reserve’s 2026 Small Business Credit Survey. The survey is now open, and we are proud to be a partner in this effort.
Owners and key financial decision makers of for-profit businesses, share your recent experiences about what financial conditions you face, whether and how you use debt, and more. Your perspective matters. Answers to these questions contribute to data that directly informs the Fed, federal government agencies, service providers, policymakers, and others, a public good ultimately benefiting your business and others like yours.
Survey closes November 13, 2026. Click below to take the 12-minute survey now:
https://fedreserveboard.gov1.qualtrics.com/jfe/form/SV_38k9xZy8ayEERue?orgID=20261024
*Government Affairs Roundup brought to you by CITGO*
Illinois Posts Strong Start to Fiscal Year 2027
Illinois is off to a stronger-than-expected start in Fiscal Year 2027, with state revenues up 7% through the first two months, according to the Commission on Government Forecasting and Accountability (COGFA). While the fiscal year only began July 1, early returns point to solid economic activity across key revenue streams.
Through July and August, total revenues increased by $515 million compared to the same period last year. Growth has been driven by the state’s three primary sources: personal income tax collections rose 5%, corporate income taxes surged 50.9% following a slower period last year, and sales tax revenues climbed 11.6%.
August alone outpaced July, with revenues increasing $326 million (9.2%) year-over-year. Personal income taxes led the way, growing by $195 million (10.4%), while sales taxes contributed an additional $91 million (9%). Corporate income tax receipts also increased modestly.
While federal funding was up significantly in August, by $115 million or 30.9%, those figures tend to fluctuate month-to-month and are less indicative of long-term trends.
From a business perspective, this early-year growth is notable. The FY27 state budget was built on conservative revenue assumptions, meaning current performance could provide a financial cushion should economic conditions soften later in the year. As COGFA noted, while this pace of growth may not continue, the stronger-than-expected start positions the state more favorably in the near term.
One item to monitor is the anticipated $50 million transfer from the Income Tax Refund Fund to the General Fund. Timing and prior-year collections heavily influence this transfer, and no transfer occurred in August—resulting in a year-over-year decline in that category. This dynamic is expected to become more pronounced as the fiscal year progresses.
Illinois Earns Another Credit Upgrade, Strengthening Fiscal Outlook
Illinois’ financial standing continues to improve, as S&P Global Ratings recently upgraded the state’s general obligation bond rating to “A” with a stable outlook. The move follows a similar action by Moody’s and marks the 12th credit upgrade since 2019.
For the business community, credit upgrades are a meaningful signal. Higher ratings reflect increased confidence from investors and can translate into lower borrowing costs for the state—ultimately benefiting taxpayers and improving Illinois’ long-term fiscal position.
S&P cited the state’s recent track record of more disciplined budgeting and proactive fiscal management as key drivers behind the upgrade. The agency also expressed confidence in Illinois’ ability to manage potential challenges tied to federal funding changes, provided state leaders continue to respond in a timely and balanced manner.
Additional state-backed bonds also saw upgrades, including Build Illinois and Metropolitan Pier and Exposition Authority bonds.
Despite this progress, Illinois still ranks at the lower end of state credit ratings nationally, underscoring that challenges remain, particularly around long-term pension liabilities. However, the steady upward trend signals measurable improvement over the past decade, when the state’s rating hovered just above “junk” status.
Looking ahead, further upgrades could be possible if Illinois continues to reduce pension obligations and maintain stable revenue growth.
New Regional Transit Authority Begins Work on System Improvements
A major shift in northeastern Illinois’ public transportation system is now underway with the launch of the Northern Illinois Transit Authority (NITA). The new entity replaces and expands upon the former Regional Transportation Authority, with a mandate to improve coordination and service across Metra, Pace, and the Chicago Transit Authority.
NITA was established through a comprehensive transit reform package approved last year, which included more than $1 billion in funding to stabilize the system and avoid service cuts. The legislation also outlined a series of long-term operational and governance reforms aimed at improving the rider experience.
The new board is set to begin meeting in the coming weeks, marking the start of what is expected to be a multi-year transition. While immediate changes may be limited, the long-term outlook includes several significant improvements.
Among them is the development of a universal fare system across all transit agencies, targeted for completion by 2030. Additional reforms address safety protocols, system coordination, and potential expansion of commuter rail service into growing suburban areas.
For employers and the regional workforce, a more reliable and efficient transit system is critical. Improved connectivity supports workforce mobility, reduces commuting challenges, and enhances the overall economic competitiveness of the Chicago metro area.
I80 Corridor Progress Report
A lot has progressed through the I80 corridor over the last few weeks. New roadways have been paved, noise walls erected, construction of new bridges and ramps, as well as continuing to advance work being done at various interchanges.
Work has begun on the new Des Plaines River Bridge. Crews are completing structure excavations and footings and constructing the pier foundations that will ultimately support the new bridge. The majority of the work being done right now is on land, with construction to begin soon in the river. The new bridge is being built right alongside the existing two structures, allowing the continuation of traffic flow.
As shared last week, progress continues on the Chicago Street interchange as well as the Center Street interchange and others. Yesterday marked the last day for the foreseeable future to use three out of the four ramps.
Finally, work is nearing completion on the new I55 interchange. A new fly over ramp is almost complete. Crews are currently constructing bridges, retaining walls, and paving new ramps.
Best Places to Work in Illinois
The Illinois Chamber of Commerce is taking the Best Places to Work in Illinois program to the next level! This longstanding program recognizes organizations creating exceptional workplaces across the state.
Selected organizations will receive statewide recognition, including a feature in Illinois Business Leader and recognition at the May 2027 awards event. Think your organization is one of Illinois’ best places to work?
Register by January 15, 2027. Register Here!
Stay well,
Mike Paone
Executive Vice President
Joliet Region Chamber of Commerce & Industry
mpaone@jolietchamber.com
815.727.5371 main
815.727.5373 direct