Government Affairs Roundup
“Your Timely Roundup of Local, State, and Federal Updates”
Chamber members:
Both the U.S. Congress and the Illinois General Assembly are off this week, but there still remains news to share. It was a marathon last week in the state Capitol. Lawmakers in the House and Senate were up against deadlines to get bills passed so the other chamber has time to consider them. In the end, lawmakers have given their approval on more than 500 bills. Those are still moving through the legislative process and need further votes before they can become law.
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Session Update
The House and Senate were in Springfield for a full week of legislative activity last week, with the Senate meeting for four days and the House for five. For the first time this year, we saw significant floor action, with over 500 bills passing out of both chambers.
Committees were active throughout the week, focusing primarily on bill amendments and subject matter testimony. Friday, April 11, marked the Third Reading deadline in both chambers. Looking ahead, the House is scheduled to return to Springfield on Tuesday, April 22, and the Senate will reconvene on Tuesday, April 29.
Calls Continue to Repeal Illinois’ Interchange Fee Prohibition Act Ahead of July Implementation
A controversial Illinois law regulating credit and debit card transactions is facing mounting opposition as its July implementation date approaches.
The Interchange Fee Prohibition Act, passed in June 2024, prohibits banks from charging or receiving interchange fees on certain portions of transactions—specifically taxes and gratuities. If enacted, Illinois would become the only state to enforce such regulation, making it a unique outlier in the global payment system.
Critics, including the Illinois Bankers Association, warn that the policy could disrupt everyday transactions for consumers and businesses alike. “Splitting out elements of what has previously always been considered a single transaction could mean Illinois consumers are forced to pay tax or gratuities in cash or by check, and purchases might require two transactions,” said Randy Hultgren, president of the Illinois Bankers Association, during a news conference in Springfield. “This has never been implemented anywhere else in the world.”
Ben Jackson, also with the Illinois Bankers Association, emphasized the long-term infrastructure changes such a policy would require. “We all have credit cards with chips embedded in them now,” he said. “The onboard for that, getting merchants and financial institutions aligned, took 12 to 15 years.”
Small business advocates are also sounding the alarm. Eric Cohen, CEO of Merchant Advocate, noted that mom-and-pop shops may struggle to comply with the law’s requirements. “When looking at the intricacies you have to do, I think business owners that understand it would probably say, ‘you guys are out of your mind, how do you want us to implement this?’” he said.
Despite the backlash, supporters of the law, including the Illinois Retail Merchants Association, maintain that the transition will be smooth, citing existing restrictions on interchange fees in some areas of commerce.
Meanwhile, a lawsuit challenging the law has led to a partial injunction that exempts federally chartered and out-of-state banks. A court hearing is scheduled for May 7, though Gov. J.B. Pritzker remains unimpressed by the legal pushback.
“Most of the time the court cases get thrown out and most of the time those court cases are just because they couldn’t win in the legislature,” Pritzker said Wednesday. “How about they come and win in the legislature and then they can have their way.”
As July draws closer, pressure is mounting on lawmakers to either delay or repeal the law before it creates disruption in Illinois’ payment ecosystem.
Governor Pritzker Signals Support for Expanding Nuclear Power in Illinois
Governor J.B. Pritzker appears open to expanding nuclear power in Illinois, aligning with a broader push from state Republicans to grow the state’s already significant nuclear energy footprint.
Illinois currently leads the nation in nuclear energy production, with 11 active reactors spread across six sites. In 2023, Pritzker signed legislation lifting the state’s decades-long moratorium on new nuclear reactors. That law specifically focuses on exploring small modular reactors (SMRs)—a newer, more compact form of nuclear technology.
Now, lawmakers in Springfield are considering a new proposal that would go further. The measure would eliminate restrictions on building larger nuclear reactors, removing the current cap that limits new facilities to a maximum nameplate capacity of 300 megawatts.
“We’re looking forward to having a bill that comes to my desk that will allow us to expand the options for nuclear in the state of Illinois, but it has to be done in the right way,” Pritzker said.
International interest in Illinois’ nuclear expansion is also growing. While signing a trade agreement with the state, United Kingdom Consul General Richard Hyde suggested that British firms, including Rolls Royce, could play a role in Illinois’ nuclear future.
“Illinois has adopted a standard and definition of small modular reactors, which we think is a little old-fashioned,” said Hyde. “We would love to open up like states around you and let Rolls Royce bring their technology into Illinois and drive forward small modular reactors.” Rolls Royce is actively developing SMRs in the UK, and so far, Canada is home to the only SMR under construction in the Western Hemisphere.
However, not everyone supports expanding nuclear power. David Kraft, director of the Chicago-based Nuclear Energy Information Service, warned that growing the nuclear footprint could delay or block the adoption of safer, renewable energy options. “We have solutions that don’t produce radioactive waste or any kind of radioactive hazard waiting in line to be connected,” Kraft said. “And we do know if more nuclear gets built, fewer of those projects will be connected.”
As Illinois weighs the future of its energy infrastructure, the debate continues over how best to balance innovation, safety, and sustainability in the state’s power mix.
Consumer Confidence Slips, but Economic Growth Holds Steady
U.S. consumer confidence dropped sharply in April, falling to its second-lowest level on record since 1952, according to the University of Michigan’s monthly survey reported by CNN’s Bryan Mena. The 11% decline brought sentiment below levels seen during the Great Recession, signaling growing concerns across demographics about inflation, unemployment, and the broader economic outlook—despite several indicators suggesting the economy remains relatively strong.
One of the biggest concerns among consumers is inflation. Expectations for price increases over the next year surged to their highest point since 1981. However, it’s still unclear whether this dip in sentiment will lead to a meaningful pullback in consumer spending—a key driver of the U.S. economy—as spending doesn’t always follow confidence levels.
Despite headwinds such as high inflation, rising interest rates, and tighter credit conditions, the U.S. economy showed solid growth through the end of March. The economy expanded by 2.4% in the fourth quarter of 2024 and grew 2.8% overall for the year—both in line with expectations.
However, early estimates for the first quarter of 2025 suggest growth is slowing, tracking under 1%. Economists point to the ongoing impact of tariffs as a major drag, as businesses scale back investments and hiring while consumers grow cautious, anticipating higher prices in the future.
Inflation in March was 2.4% on an annual basis. On a monthly basis, prices dipped slightly, falling 0.1% from February to March. While inflation remains elevated, wages have been outpacing price increases on an annual basis, which is helping to sustain consumer spending for now.
The labor market also remains a bright spot. In March, the U.S. added 228,000 jobs—well above expectations and the 12-month average of 158,000. Additionally, as of the end of February, there were 7.6 million job openings, about 516,000 more than the number of unemployed workers.
While uncertainty surrounding trade policy and global markets continue to cloud the economic outlook, key fundamentals—such as job growth and wage gains—remain strong. The big question going forward is whether consumer anxiety will ultimately outweigh those positives.
Quick Tariff Recap
The tariffs imposed this year have come in waves.
- 25% tariffs on goods from Canada and Mexico. These tariffs were imposed at the beginning of March on all goods that do not comply with the U.S.-Mexico-Canada Agreement. About one-third of everything coming in from Canada and Mexico today is tariffed.
- Tariffs on goods from China. A series of six waves of tariffs were imposed on imports from China. There are 145% tariffs in force, and that is on top of the tariffs that President Trump imposed on goods from China in his first term.
- 25% tariffs on steel and aluminum imports. The tariffs that have been imposed on imports of steel and aluminum from all countries also apply to so-called “derivatives.” These are products that have a lot of steel or aluminum in them, and the tariff applies to that share of the content of the product coming in. Exclusions from the tariffs that individual companies had gotten in 2018-2021 have been voided, and the duties now apply to all steel and aluminum from all countries.
- Tariffs on automobile imports. Tariffs have been imposed on all imports of automobiles from all sources as of April 3, and it’s anticipated that on May 3, that duty will also be imposed on all auto parts coming into the country.
- 10% tariffs on all imported goods. On April 2, a 10% duty was imposed on virtually all goods from around the world.
Update on Illinois Breakaway Counties – Indiana Annexation Bill Nears Vote
A bill nearing a vote in the Indiana Senate could open the door for parts of Illinois to explore joining the Hoosier State—a symbolic gesture in a long-running battle between rural Illinoisans and their state government.
House Bill 1008, authored by Indiana House Speaker Todd Huston, would establish the Indiana-Illinois Boundary Adjustment Commission, tasked with studying the feasibility of annexing Illinois counties into Indiana. The legislation passed the Indiana House in February with a 69-25 vote and could come up for a Senate vote as early as Monday. “We want to open the doors if they want to come here,” said Sen. Scott Baldwin, a Noblesville Republican who is sponsoring the bill in the Senate.
Despite enthusiastic support in some Illinois counties, the practical path forward is steep. Clark County, which voted by a 3-to-1 margin in favor of separation, is one of 33 Illinois counties where voters approved a non-binding referendum to “separate from the city of Chicago to form a new state.” Still, local leaders acknowledge the limitations.
Even supporters of the separation movement say joining Indiana is not their end goal. “The people did not vote to have their boards look into the possibility of joining Indiana, therefore the people have not given their consent to become Indiana,” said Loret Newlon, director of the Illinois Separation Referendum.
Doug Cochran, chairman of the Edgar County Board—where 83% of voters supported the referendum—called the Indiana annexation idea a distraction: “I think it is a non-starter. I would think our legislature has better things to do. Illinois has so many problems.”
Downstate Republicans in Illinois have long voiced frustration with what they view as Chicago’s outsized influence on state politics. Complaints center on high taxes, strict gun laws, heavy business regulation, and a liberal cultural agenda of which they attribute to Democratic dominance in the state’s urban centers.
In contrast, Indiana is controlled by Republicans who have minimized the political power of its largest cities, including Democrat-led Indianapolis—making it an appealing contrast for rural Illinoisans.
Still, redrawing state boundaries is no small feat. Such a change would require approval from both state legislatures, both governors, and the U.S. Congress—a hurdle not cleared since the Civil War era.
Even Governor J.B. Pritzker dismissed the proposal as “a stunt,” and many involved seem to recognize that the bill is more about making a statement than redrawing maps.
Bills of Note:
One bill that failed to pass last week drew significant attention and headlines. The Homeschooling Oversight Reform Bill, which sparked major controversy at the Statehouse this year, was never called for a vote despite intense debate over new oversight requirements for homeschool families. “We know we still have work to do on this bill,” bill sponsor Rep. Terra Costa-Howard, D-Glen Ellyn, told her House colleagues Friday morning.
That bill missed Friday’s deadline to get through the House, but it could be revived through one of several procedural maneuvers between now and the legislature’s May 31 adjournment.
The legislature failed to bring up several other closely watched bills last week. Some of Gov. JB Pritzker’s major initiatives this year also weren’t called, including legislation that would allow community colleges to offer bachelor’s degrees.
SB 2164, Unpaid Wages passed the Senate 37-19-0. This bill fails to provide constructive notices when an employee brings a claim against the employer. The department would now take claim directly to courts without notice.
HB 1600 Plastic Foodware passed the House 75-39-0. This bill creates the Single-Use Plastic Foodware Reduction Act. Provides that a third-party food delivery platform or third-party online ordering platform must allow consumers to request single-use foodware when ordering food or beverages from a restaurant through the platform. Prohibits restaurants using a third-party food delivery platform or third-party online ordering platform from providing single-use foodware unless specifically requested by the consumer.
HB 2952, Changing Stations, passed the House 75-38-0. Concerning baby changing stations, this bill provides that hotels and lodging facilities; public and private schools and educational institutions; small entertainment venues, including movie theaters and bowling alleys; healthcare facilities with public restrooms; transit public parks with restroom facilities; and standalone public parks with restroom facilities are subject to the provisions. Provides that a retail store of more than 3,000 square feet (rather than 5,000 square feet) that contains a restroom open to the public is subject to the provisions. Provides that a restaurant that has an occupancy of at least 40 persons (rather than 60 persons), among other criteria, is subject to the provisions of the Act.
Stay well,
Mike Paone
Executive Vice President
Joliet Region Chamber of Commerce & Industry
[email protected]
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815.727.5373 direct