Government Affairs Roundup
“Your Timely Roundup of Local, State, and Federal Updates”
Chamber members:
The shutdown continues with the Senate failing to pass competing bills last Friday to fund the government, thereby extending the shutdown into this week. The failure of the bills was once again expected. On the other side, the House announced they were extending their recess through October 13th.
The Senate was back in action on Monday and again took another shot at passing a bill, but with no success. More updates below on the shutdown.
More locally, back in Illinois the general assembly will hold their veto session beginning next Tuesday the 14th and running through end of the day on Thursday, the 16th. They are scheduled to be back in action October 28-30.
Don’t forget about our announcement regarding the October member luncheon. Will County Executive Jennifer Bertino-Tarrant will be giving her State of the County address on the 29th. Reservations are open to join us that day: https://jolietchamber.chambermaster.com/events/details/2025-member-lunch-october-state-of-the-county-address-from-will-county-executive-jennifer-bertino-tarrant-7725
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Government Shutdown at One-Week Mark as Congress Remains Deadlocked
The federal government shutdown entered its eighth day today, with Congress still unable to agree on a plan to reopen agencies or extend funding. For the fifth time in a row, the Senate rejected both parties’ competing short-term funding bills Monday night, signaling continued stalemate and little movement toward compromise.
The vote highlighted the deep divide between Democrats and Republicans: most Democrats opposed the House-passed Republican Continuing Resolution (CR), while Republicans blocked the Democrats’ alternative spending measure. Only Sens. John Fetterman (D-Pa.), Catherine Cortez Masto (D-Nev.), and Angus King (I-Maine) supported both bills. Sen. Rand Paul (R-Ky.) voted against both.
Republicans’ proposal would keep the government running for seven more weeks, giving lawmakers time to finalize the 12 annual appropriations bills. Democrats, however, argue the GOP plan would “gut” health care because it omits a renewal of pandemic-era enhanced Obamacare Premium Tax Credits (PTCs), which expire this year.
Their counterproposal includes a permanent extension of those enhanced credits and several other policy add-ons, bringing the total cost to roughly $1.4 trillion. Republicans have dismissed that plan as excessive and unrelated to immediate funding needs.
Negotiations between party leaders have stalled completely. GOP leaders insist Democrats will eventually relent as the shutdown’s effects deepen—though there’s little sign of that happening yet.
President Donald Trump, meanwhile, has sent mixed signals about his role in the standoff. On Monday, he told reporters that “productive talks” were underway with some Democrats and that a broader deal could include health care reforms.
The shutdown comes as insurers finalize policy rates ahead of the Nov. 1 open enrollment period. Without the enhanced tax credits, average premiums could more than double for many policyholders—roughly three-quarters of whom live in Republican-leaning states, according to research from KFF.
Public opinion polling shows a complex picture: most Americans, including 59% of Republicans, support extending the health insurance subsidies. Yet fewer than half of Democrats surveyed by CBS News last week said the shutdown was “worth it” to advance their position.
The next critical deadline is Oct. 15, when military paychecks are due. If Congress fails to act by then, more than 2 million servicemembers could be forced to continue working without pay until the shutdown ends.
Unlike previous funding lapses, the current situation offers no guarantee of timely pay. During the 2018–19 shutdown, troops were unaffected because the defense budget was already approved. In 2013, Congress passed emergency legislation to ensure paychecks went out on time.
With no such measure yet on the table, lawmakers are under growing pressure to find a path forward before the shutdown hits the one-week mark and deeper disruptions begin to take hold.
President Trump Signals Openness to Bipartisan Health Care Deal Amid Shutdown
President Donald Trump on Monday suggested he may be open to a bipartisan deal on health care that could help end the nearly weeklong government shutdown.
Speaking to reporters in the Oval Office, Trump indicated a willingness to continue, at least in part, the expanded premium tax credits that help Americans purchase coverage through government-run insurance exchanges.
“We have a negotiation going on right now with the Democrats that could lead to very good things—and I’m talking about good things with regard to health care,” Trump said. “If we made the right deal, I’d make a deal.”
Illinois Housing Development Authority Awards $2 Million to Habitat for Humanity to Expand Homeownership Opportunities
The Illinois Housing Development Authority (IHDA) allocated $2 million to Habitat for Humanity of Illinois (HFHIL) to administer a new round of the Community Impact Fund, a program that helps working families, especially in Central and Southern Illinois, buy a home. The program is expected to create 100 new homeowners across Illinois.
“Homeownership is the foundation of strong, stable communities, but too many hardworking families are shut out by rising costs and limited access to credit,” said IHDA Executive Director Kristin Faust. “By partnering with Habitat for Humanity of Illinois, IHDA is making sure that more families across our state can put down roots, build wealth, and create brighter futures. This investment is about more than homes; it’s about opportunity, stability, and hope.”
The Community Impact Fund provides down payment assistance in the form of forgivable grants, reducing barriers that prevent many families from qualifying for traditional mortgages. Financing for the program comes from IHDA’s Illinois Affordable Housing Trust Fund, and, since the Community Impact Fund was created in 2014, HFHIL has helped 259 Illinois families become homeowners through more than $4.6 million in down payment assistance.
“Every family deserves a safe, affordable place to call home,” Chicagoland Habitat for Humanity Chief Executive Officer Sarah Brachle Wagner stated. “The Community Impact Fund not only makes homeownership possible for families who thought it was out of reach but also gives them the chance to invest their time, energy, and pride through sweat equity by assisting their local Habitat for Humanity in creating additional housing opportunities. With IHDA’s continued support, we can expand this life-changing program and strengthen communities across Illinois – one home, one family at a time.”
Families earning up to 80% of the Area Median Income (AMI) are eligible for grants of up to $20,000, while those earning at or below 50% AMI or less may qualify for up to $25,000. Monthly payments for the new homeowners will not exceed twenty (20%) to thirty (30%) percent of their monthly income, ensuring they are making the best decision for their financial future.
“The Community Impact Fund has helped me tremendously,” said Susan, a new homeowner in Urbana. “Without this resource, I am not sure how I would have been in the position to be a homeowner. Now, I have a home where my baby can grow up.”
“This program was a great experience for me and my family,” said new Rantoul homeowner Desereé. “The first-time home buyers program helped my family with continued stability. I am forever grateful for this opportunity.”
According to the Federal Reserve, only thirty-five percent (35%) of adults with incomes below $50,000 own a home, compared with eighty-five percent (85%) of households earning $100,000 or more. Rising housing costs have widened this gap, leaving many younger adults unable to access stable housing. The Community Impact Fund directly addresses this challenge.
“By the Grace of God and everyone involved, I applied for assistance through the Community Impact Fund and was accepted,” said Stacey of Glen Ellyn. “Never in my dreams did I think that was going to be a possibility for me. Having this house where I know my daughter Jordan will grow up in safe and have somewhere to call home is truly a gift from God. I am forever grateful and thankful for this amazing opportunity.”
The Community Impact Fund is administered through the Chicagoland Habitat for Humanity. 31 Habitat affiliates, including Champaign, DuPage County, Fox Valley, Lake County, McLean County, Peoria, Rockford, and Will County have already used the Community Impact Fund to strengthen neighborhoods and open doors for working families.
Illinois Moves to Fix Years-Long Delays in Financial Reporting
With Illinois’ audited financial reports now arriving more than two years late, state officials say they’re overhauling how the data are compiled — a move aimed at speeding up one of the slowest reporting systems in the nation.
Under the change, Illinois Auditor General Frank Mautino and Comptroller Susana Mendoza will no longer wait for every agency and department to finish its own audited report before releasing the state’s Annual Comprehensive Financial Report (ACFR). Instead, they’ll use a government-wide audit as the basis for the document, a method already used in other states.
“The failure of a small agency to report in a timely fashion should not hold up release of the entire ACFR,” Mautino said in an interview. He called the new approach a “significant help” in accelerating the release of the financial statement, which is closely watched by investors, credit-rating agencies, and lawmakers.
A spokesman for Mendoza said the change should take effect with the fiscal 2025 report. “Comptroller Mendoza has pushed for Illinois to join the majority of states that use a statewide audit instead of this old system that has caused these delays,” the spokesman said. “The good news is: we are fixing this problem moving forward for FY25.”
In the meantime, Mendoza has been publishing shorter, preliminary reports to provide at least some insight into the state’s finances.
State law requires the ACFR to be released within six months of the end of each fiscal year — by Dec. 31. That timeline has slipped dramatically. The report for fiscal 2017 came out in March 2018, just a few months late. But the most recent edition, covering fiscal 2023, wasn’t released until Aug. 7, 2025 — 25 months late and behind every other state except Nevada.
Officials blame a combination of factors, including slow submissions from individual agencies and technical issues tied to new accounting systems. Mautino said the worst problems came from the Department of Healthcare & Family Services, whose data errors triggered $1.1 billion in accounting adjustments.
An audit of that department “identified an error that resulted in HFS invoicing pharmaceutical manufacturers for rebate payments that were ineligible for such rebates,” Mautino said. “This error required a restatement of the beginning balance for the General Fund and governmental activities, along with an adjustment for the FY 2023 portion of the error.”
While credit-rating agencies haven’t publicly penalized Illinois for its delays, lawmakers are raising concerns about transparency and accountability. “If this was a private company, the U.S. Securities & Exchange Commission would be looking,” said Rep. Steve Reick, R-McHenry, the House GOP’s lead on budget matters. “If we don’t know how departments have spent their money, why should we give them more?”
Reick, a professional auditor, blamed Gov. J.B. Pritzker’s administration for poor oversight of agencies. The governor’s office pushed back, saying the issue originated with HFS and was promptly corrected.
“Although this technical matter extended the timeline for the ACFR’s release, the state continued to provide a high level of transparency through other regular financial disclosures,” a Pritzker spokesman said. “The governor and this administration remain committed to full transparency, strong fiscal management and timely financial reporting.”
Other insiders say ongoing conversion of the state’s accounting systems has also contributed to delays. The new statewide audit approach will debut with the 2025 ACFR. The 2024 report will still be delayed, though officials hope not as severely as the 2023 edition.
Mautino said his office will continue performing department-by-department compliance audits — which focus on performance and internal controls — even as the broader financial report shifts to a single audit format.
Whether the overhaul will be enough to bring Illinois’ reporting back on schedule remains to be seen, but after years of frustration, state officials say they’re finally on a path toward timely and transparent financial disclosure.
RTA Narrows 2026 Transit Fiscal Cliff, but Larger Deficit Looms in 2027
The Regional Transportation Authority has slashed its projected 2026 budget shortfall by more than $500 million, reducing the so-called “fiscal cliff” facing Chicago-area transit agencies to $202 million. But the relief is only temporary — the deficit is expected to climb back to nearly $800 million the following year.
The improved outlook, driven by higher-than-expected sales tax revenue, a 10% fare increase, and the use of reserve funds, was announced Tuesday at a meeting of the RTA’s committee tasked with addressing the financial crisis triggered by the expiration of federal COVID-19 relief dollars.
While the adjustment cuts the shortfall from $771 million to $202 million — a $570 million improvement — it was met with skepticism from lawmakers and labor leaders who have been negotiating state legislation to reform the RTA and its service boards: the Chicago Transit Authority, Metra, and Pace.
“The good news is this buys us time,” RTA Board Chair Kirk Dillard said in a written statement. “But if lawmakers continue to delay action on funding and reform, riders will begin to feel the pain through service cuts and fare increases in 2026, with worsening impacts when the full cliff hits in 2027.”
The RTA attributed the smaller deficit largely to an increase of $454 million in new revenue and a 10% fare hike systemwide. Interim CTA CEO Nora Leerhsen said the increase will generate an additional $30 million to $35 million for the CTA alone.
The three service boards are expected to release their individual 2026 budgets later this month, each including multiple scenarios depending on whether the Illinois General Assembly enacts a funding and governance reform package.
Without new state funding, the RTA projects deficits will climb to $789 million in 2027 and $888 million in 2028. “These actions will buy lawmakers a little more time,” Dillard said, “but the funding gap still looms.”
Several stakeholders in the ongoing transit overhaul talks accused RTA leadership of using the revised numbers to stall long-anticipated reforms that could reshape the region’s transit governance.
Under a Senate-approved plan that has yet to advance in the House, the RTA would be replaced by a new Northern Illinois Transit Authority (NITA) governed by a 20-member board. The governor, Chicago mayor, and Cook County Board president would each appoint five members, with the remaining five chosen by the leaders of DuPage, Kane, Lake, McHenry, and Will counties.
Chicago Federation of Labor President Bob Reiter said the new forecast was designed to delay that transition. “They did it to push a $700 million fiscal cliff a year by expending funds they have now,” Reiter told Crain’s. “What happens when something unexpected occurs before 2027? They’ve taken the last feather out of their cushion to save their jobs.”
Dillard rejected that criticism, saying the RTA continues to support reform and that the revised outlook doesn’t eliminate the looming crisis. “I want to be very clear about any perception that the RTA is trying to downplay the seriousness of what we are facing or avoid reform from passing,” he said. “Our sincere hope is that Springfield acts on reform and funding as soon as possible.”
The fiscal update came the same day the White House announced a freeze on more than $2 billion in federal funds for two major CTA projects — the Red Line Extension and the Red and Purple Modernization initiatives.
Federal Budget Director Russell Vought said the suspension was part of an effort by the Trump administration to ensure transportation dollars are “not flowing via race-based contracting.”
The Red Line Extension, which would add four stations and extend service 5.6 miles south of 95th Street, had secured a $1.97 billion federal grant earlier this year and is slated for completion in 2031. The Red and Purple Modernization Project aims to rebuild aging stations, construct a new bypass, and install a modern signal system.
With major infrastructure funding now uncertain and a massive operating deficit on the horizon, transit officials and state lawmakers remain under mounting pressure to deliver both long-term reform and financial stability for the region’s transportation network.
Stay well,
Mike Paone
Executive Vice President
Joliet Region Chamber of Commerce & Industry
mpaone@jolietchamber.com
815.727.5371 main
815.727.5373 direct