Government Affairs Roundup
“Your Timely Roundup of Local, State, and Federal Updates”
Chamber members:
Since the last update, major announcements have been made concerning vital transportation projects here in the region. Read more about below concerning the I-80 and I-55/Rt. 59 projects.
Additional information covering the hot topic of credit card “swipe fees” is shared as well.
*Government Affairs Roundup brought to you by CITGO*
Governor Pritzker Announces $96 Million Bridge Milestone Reached on I-80
Governor JB Pritzker and the Illinois Department of Transportation (IDOT) were joined by local officials and community leaders on Friday to celebrate the completion of several key bridges in the $1.3 billion reconstruction and modernization of Interstate 80, a cornerstone project of the governor’s historic, bipartisan Rebuild Illinois capital program. To create more opportunities for minority-and female-owned firms to do business on I-80 and other projects, Gov. Pritzker also announced the opening of a new local resource center in Will County for IDOT’s Disadvantaged Business Enterprise (DBE) program. “By making smart investments in the bridges that working families and businesses depend on, we’re building a better future for the entire region,” said Gov. Pritzker. “Today, I am proud to see these investments come to life with the modernization of several I-80 bridges and the opening of the new Disadvantaged Business Enterprise Resource Center. Thanks to Rebuild Illinois, we are revitalizing our infrastructure and creating economic opportunities for communities across the state.”
The I-80 project is replacing the more than 50-year-old infrastructure along a 16-mile corridor in a booming territory for logistics and freight, adding multiple safety and capacity enhancements. It also is improving quality of life and creating thousands of construction and permanent jobs while positioning the region for long-term economic opportunity.
The bridges carrying both directions of the interstate over Hickory Creek, Richards Street and Rowell Avenue/Canadian National Railroad are now substantially complete, a $96 million investment that kick-started the I-80 project. While the bridges will stay two lanes in each direction with expanded shoulders until all of the I-80 work is finished, the new structures eventually will accommodate three lanes each.
Also, as part of Gov. Pritzker’s directive to include small, local businesses on the project, IDOT has opened a new DBE Resource Center, 858 Center Court, Unit A, in Shorewood. Furnished with a computer lab and office equipment, the resource center will act as a free one-stop shop offering one-on-one assistance for firms that want to become certified DBEs and learn about contracting opportunities in the area without having to travel to meet with IDOT staff in Chicago or Schaumburg. For more information, visit https://idot.click/DBE_Resource or call (815) 630-3400 to make an appointment.
“An investment in infrastructure is an investment in people, with the I-80 improvements positively impacting a vital area of the state for decades to come,” said Illinois Transportation Secretary Omer Osman. “We are not just rebuilding one of the country’s main corridors for travel, but growing small businesses and creating good-paying local jobs to drive the Illinois economy forward.”
Since the I-80 project started, bridges over I-80 on Shepley Road and Wheeler Avenue have been rebuilt, as well as interchanges reconstructed at Houbolt Road and U.S. 30. This spring, ground was broken to rebuild and widen 11 mainline miles: between Ridge and River roads, River Road and Wheeler Avenue and from Rowell Avenue to Gougar Road. The bridges carrying Briggs Street and River Road over I-80 also are being replaced. Richards Street is being reconstructed with a new bridge deck over Hickory Creek, with all bridges crossing I-80 except Shepley Road including new or improved sidewalk and bicycle accommodations, removing the interstate as a barrier for people who walk, bike and roll.
Major elements remaining are new interchanges with I-55 and Larkin Avenue (Illinois 7), which will break ground next year. The final pieces are new Chicago Street (U.S. 52/Illinois 53) and Center Street interchanges as well as new bridges over the Des Plaines River, all anticipated to begin in 2026.
The entire project is anticipated to be substantially complete by the end of 2028, with landscaping, demolition of the Des Plaines River bridges and miscellaneous work extending into 2029. Visit I80will.org for more information, including a project map and timeline.
“Through the Rebuild Illinois program, the state has made major strides in improving local bridges and roads, including the modernization and reconstruction of I-80. As one of the biggest transportation hubs in the state, this is fantastic news for residents and tourists in Joliet and the surrounding area,” said state Sen. Rachel Ventura (D-Joliet). “Not only will these investments improve major infrastructure, but also provide opportunities for minority- and female-owned firms to work on these projects.”
“The work on I-80 through the governor’s Rebuild Illinois initiative lays the groundwork for a more connected, modern Illinois. This milestone demonstrates what we can achieve when we work together across the aisle, ensuring long-term benefits for the state through bipartisan efforts,” said state Rep. Larry Walsh (D-Elwood). “The new resource center will open doors for female- and minority-owned businesses through the Disadvantaged Business Enterprise program, making sure that everyone has a stake in our state’s progress.”
Passed in 2019, Rebuild Illinois is investing a total of $33.2 billion over six years into the state’s aging transportation system, creating jobs and promoting economic growth. Rebuild Illinois is not only the largest capital program in state history, but also the first that touches all modes of transportation: roads and bridges, transit, waterways, freight and passenger rail, aviation, and bicycle and pedestrian accommodations.
“This is a significant milestone in the historic I-80 reconstruction project, which will improve safety and access on this important corridor,” said Will County Executive Jennifer Bertino-Tarrant. “I appreciate Gov. Pritzker and Secretary Osman prioritizing this project and ensuring that local small businesses have an opportunity to access contracting opportunities through the new DBE Resource Center.”
FEMA Opens Technical Assistance Center in Joliet to Support Residents Filing Relief Applications
In coordination with the Will County Emergency Management Agency, the Federal Emergency Management Agency (FEMA) has opened a Disaster Recovery Center in Joliet to provide technical assistance to residents applying for federal assistance from damage sustained during the July 13-16 severe weather.
The center is located at the Will County Center for Community Concerns (2455 Glenwood Ave., Joliet) and will be open 8 AM to 7 PM on Mondays through Fridays and from 8 AM to 12 PM on Saturdays. It will be closed on Sundays.
Representatives from FEMA, the State of Illinois, and the U.S. Small Business Administration (SBA) will be at the center to help community members apply for federal disaster assistance, upload documents, and answer questions.
“We appreciate FEMA and SBA for opening this temporary center to support residents applying for assistance,” said Will County Emergency Management Agency Director Allison Anderson. “Even though these storms were two months ago, residents and property owners who experienced damage should consider applying for assistance.”
Federal assistance became available on September 20 after a Major Disaster Declaration was issued for Will County. The declaration allows community members to apply for Individual Assistance to help cover costs incurred during the July severe weather, including home repairs, temporary housing, property damage, and emergency purchases.
The SBA has also made low-interest disaster loans available to property owners. Businesses may be eligible for relief for economic impact and residents may be eligible for a low-interest loan. Additionally, the Internal Revenue Service will provide tax relief and filing deadline extensions for individuals and businesses impacted by the storms.
“Residents throughout the county experienced thousands of dollars’ worth of property damage from the July storms,” said Will County Executive Jennifer Bertino-Tarrant. “Anyone who was impacted by this severe weather event should consider applying for assistance or visiting the Recovery Center to ask questions.”
Since the emergency declaration was issued, FEMA has received nearly 900 applications from Will County. Over $650,000 has been awarded to Will County residents as of October 1, including housing assistance and other needs.
A visit to the Disaster Recovery Center is not required to apply for assistance. Applications are available at www.DisasterAssistance.gov, by calling the FEMA Helpline at 800-621-3362, or by using the FEMA App.
For more information about the disaster recovery operation in Illinois, visit www.fema.gov/disaster/4819.
Governor Pritzker Highlights Economic Growth at Data Center Groundbreaking
A Texas-based company, CyrusOne, has officially broken ground on a new data center in Aurora, marking the latest in a series of data storage facility developments in northern Illinois. This project is part of a growing trend in the region, and Governor JB Pritzker celebrated it as a key milestone in the state’s economic development strategy during the groundbreaking event last Wednesday.
Governor Pritzker emphasized the significance of the project, highlighting that it will bring hundreds of union construction jobs to the area. The governor attributed the success of this development to his administration’s strategic efforts to attract private investments and promote new industries in Illinois.
Data centers, large-scale facilities used to house computer systems that store, process, and distribute digital information, have become essential in today’s digital economy. These centers can either be dedicated to specific companies, like Microsoft or Meta, or operate as “colocation” facilities, such as the one being built in Aurora. Colocation centers rent out space and equipment to multiple clients, offering flexibility for businesses seeking data storage solutions.
CyrusOne’s latest development is the company’s second in Aurora and is expected to be completed within two years. The project benefits from a tax incentive package under Illinois’ “Data Centers Investment Program,” which has attracted significant investments in recent years.
Illinois’ Data Centers Investment Program has played a crucial role in stimulating economic growth. Between 2020 and 2023, the program provided over $650 million in tax incentives to data center projects, including $25 million for another CyrusOne development in 2022. These incentives have resulted in substantial returns, with $6.5 billion in required investments, $11 billion in total investments, and 469 new permanent jobs, according to the Department of Commerce and Economic Opportunity (DCEO).
“We’ve pursued every potential dollar of private investment and used all available incentives to attract and support both new and existing industries,” Pritzker said during his remarks.
CyrusOne CEO Eric Schwartz praised the state’s tax incentive program, noting its importance in the company’s decision to expand in Illinois. “The incentives drive not only our investments but also those of our customers,” Schwartz said.
The incentives offered to companies like CyrusOne align with the Pritzker administration’s broader economic development strategy. The DCEO’s five-year plan, unveiled in August, prominently features business incentives as a tool to attract investment. In addition to the Data Centers Investment Program, Illinois has implemented other initiatives, such as the Reimagining Energy and Vehicles (REV) program, which has provided nearly $1 billion in incentives since 2021, as well as programs focused on startups, quantum computing, and film production.
Despite the surge in data center development, powering these energy-intensive facilities presents a unique challenge. Data centers require massive amounts of electricity to operate continuously. Governor Pritzker assured investors that Illinois’ power grid is reliable and well-suited to meet the needs of such projects. “Electricity here is readily available and reliable,” he stated. However, a June report by CMRE, the world’s largest real estate services and investment firm, pointed out that securing sufficient electricity in the Chicago region remains a challenge for data center developers. Projects of this scale often take months or years of coordination with utility companies to ensure adequate power supply.
Commonwealth Edison (ComEd), which supplies electricity to most of northern Illinois, has been at the forefront of this effort. Every data center that has received state backing since 2020 has relied on ComEd’s services. Gil Quiniones, ComEd’s CEO, acknowledged the rapid growth of data center investments in northern Illinois during the groundbreaking event.
ComEd is currently seeking approval from state regulators for a revised grid plan that includes $430 million in spending to support new data center projects. This spending accounts for about 24% of the company’s total “new business investments” and could lead to increased electricity costs for customers in ComEd’s service area.
ComEd’s proposed spending plan has drawn criticism from the Illinois attorney general’s office and staff at the Illinois Commerce Commission (ICC). They have raised concerns about the allocation of funding toward data center developments and the potential impact on electricity bills. The ICC is expected to make a decision on how ComEd should manage the increased demands on the power grid by the end of the year.
As data center development continues to expand in Illinois, the state faces both opportunities for economic growth and challenges in meeting the energy needs of these high-demand facilities.
U.S. Chamber Calls on President to Intervene in Ports Strike
the U.S. Chamber of Commerce called on President Biden to intervene in the contract negotiations between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX) by invoking Taft-Hartley to avoid an expected work stoppage at 14 ports from Maine to Texas.
“Americans experienced the pain of delays and shortages of goods during the pandemic-era supply chain backlogs in 2021. It would be unconscionable to allow a contract dispute to inflict such a shock to our economy,” said Suzanne P. Clark, President and CEO of the U.S. Chamber of Commerce, in a letter to the President. “These ports collectively handle more than 68% of all containerized exports and 56% of imports for the nation, with a daily trade value exceeding $2.1 billion.”
“Taft-Hartley would provide time for both parties in negotiation to reach a deal on a new labor contract,” Clark continued. “We understand labor negotiations are complex, but we urge you to protect our economy by invoking Taft-Hartley and avoiding a work stoppage.”
According to a new national poll from the U.S. Chamber, a majority of American voters (57%) support the Biden Administration taking action to keep the ports open and operating while negotiations continue, while roughly 20% of those surveyed said they were opposed to federal intervention.
*UPDATE: Nearly 50,000 members of the International Longshoremen’s Association will return to work after the port workers’ union reached a tentative contract agreement with the United States Maritime Alliance.
“The International Longshoremen’s Association and the United States Maritime Alliance, Ltd. have reached a tentative agreement on wages and have agreed to extend the Master Contract until January 15, 2025, to return to the bargaining table to negotiate all other outstanding issues,” the two groups posted Thursday in a joint statement to Facebook. “Effective immediately, all current job actions will cease and all work covered by the Master Contract will resume.”
On picket lines since Tuesday, the strike against the East and Gulf Coast ports threatened to significantly disrupt supply chains, drive up consumer costs and lead to product shortages at grocery and other stores.
Negotiations had been underway since June. The disagreement was between the International Longshore Association and Warehouse Union, which represents dockworkers across the country, and the U.S. Maritime Alliance, which represents terminal operators and ocean carriers.
Wages of East and Gulf coast workers are a base wage of $39 an hour –approximately $76,000 annually – after six years, The Center Square previously reported. The union was asking for a 77% pay increase over six years. It also was asking for more restrictions and bans on the automation of cranes, gates, and container movements used to load or unload cargo.
Federal Government Backs Banks in Challenge to Illinois Swipe Fee Law
In a significant development, the federal government has taken the side of banks and credit unions in a lawsuit challenging a new Illinois law on credit card swipe fees. This case could have far-reaching implications for banking regulations across the nation.
The U.S. Office of the Comptroller of the Currency (OCC) has filed an amicus brief with the U.S. District Court for the Northern District of Illinois, supporting financial institutions in their opposition to the Illinois Interchange Fee Prohibition Act. The law seeks to exempt state and local taxes and tips from credit card swipe fees, also known as interchange fees, charged by credit card processors.
In its brief, the OCC argued that the Illinois law is “bad policy” and represents an unlawful interference with federally regulated banking powers. The agency stressed that credit and debit card transactions are essential to the national economy, and the fees financial institutions collect help ensure safe and sound banking practices. These fees are used to cover fraud prevention, transaction processing, and other services critical to the banking system.
The OCC warned that if other states or localities were to follow Illinois’ lead, it could create a “fractured, highly inefficient and unworkable payment system” that would disrupt interstate commerce. The federal brief underscores the potential ripple effect of the law, highlighting the risks of a fragmented system for processing payments nationwide.
The American Bankers Association (ABA), a trade group that has filed the lawsuit along with several others, praised the federal government’s backing. In a statement, the ABA criticized the Illinois law as “ill-conceived, highly unusual, and largely unworkable,” and expressed appreciation for the OCC’s defense of the dual banking system, which allows state and federal banks to operate under different regulations. “We appreciate the OCC’s decision to defend the dual banking system that has served our nation so well for so long,” the ABA spokesperson said.
The Illinois Interchange Fee Prohibition Act was passed during the state budget session earlier this year. Lawmakers aimed to reduce the swipe fees, which are typically paid by merchants, as a way to offset the impact of another law that reduced revenue for retailers. The new measure aims to generate $100 million in revenue by reducing the amount merchants collect for handling state and local sales taxes.
In response, major banking trade groups filed a lawsuit against the law. The plaintiffs include prominent credit card processors and issuers such as JPMorgan Chase, Citibank, Wells Fargo, Mastercard, and Visa, along with smaller community banks and credit unions. The suit seeks to halt the law, calling for both a preliminary and permanent injunction to prevent its implementation.
Banks and credit unions have argued that the Illinois law places an undue burden on financial institutions, echoing many of the points raised by the OCC. They maintain that the law disrupts the established fee structure, which is integral to maintaining the stability of the payment system. Oral arguments in the case are scheduled for October 30.
On the other side of the dispute, the Illinois Retail Merchants Association (IRMA) has downplayed the banks’ concerns. The IRMA contends that financial institutions are exaggerating the potential impact of the law. They argue that banks already have the capability to separate taxes and tips from interchange fees, pointing out that they do not charge such fees on WIC or SNAP transactions at retail.
As the legal challenge progresses, the case could set a precedent for how interchange fees are regulated across the country. A ruling in favor of the banks could signal a significant win for the financial industry, while a decision upholding the Illinois law could embolden other states to pursue similar legislation, potentially reshaping the landscape of credit card processing fees in the U.S.
Stay well,
Mike Paone
Executive Vice President
Joliet Region Chamber of Commerce & Industry
mpaone@jolietchamber.com
815.727.5371 main
815.727.5373 direct