Government Affairs Roundup
“Your Timely Roundup of Local, State, and Federal Updates”
Chamber members:
The Senate returned yesterday as the shutdown rolls into a third week with no end in sight. An eighth vote was held yesterday with yet the same outcome. Some tactics seem to be changing as a result of the shutdown continuation. Senate Republicans are no longer allowing Democrats additional votes on their own alternative continuing resolution. On Friday, the White House budget director announced mass layoffs of government workers after weeks of threats. Finally, Speaker Mike Johnson continues to keep the House out of session this week, despite grumbling by some of his rank-and-file members.
See more on that below along with some state topics of interest.
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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Illinois Veto Session Begins
The fall veto session began yesterday and runs through Thursday, October 16, before reconvening October 28–30. This summer, Governor Pritzker vetoed just four pieces of legislation — two total vetoes and two amendatory or reduction vetoes.
Of those, SB 246 is the only one with potential business implications. The bill would allow the State Treasurer to create a nonprofit investment pool for Section 501(c)(3) or 501(c)(5) organizations. It remains unclear, though unlikely, whether lawmakers will attempt to override any of the governor’s vetoes.
As noted in recent weeks, transit funding and energy expansion are expected to dominate the session.
An updated draft of Springfield’s major energy bill could be released this week, according to Rep. Ann Williams (D-Chicago), a key negotiator and longtime ally of environmental and renewable energy advocates.
Early indications suggest the proposal will focus on incentives for battery storage projects, following major shifts in the solar and storage markets due to federal policy changes. The bill may also address nuclear power, energy efficiency standards, and data center regulations.
“Small clean energy businesses across Illinois are dealing with uncertainty at best and fear at worst,” said Michelle Knox, CEO of Springfield-based WindSolarUSA, at a Tuesday news conference.
Separately, President Donald Trump signed a domestic policy plan earlier this year with significant implications for Illinois’ state budget and social service programs.
Programs such as Medicaid could face cuts in coming years, and state revenues may decline because portions of Illinois’ tax code are tied to federal law. Speaker Emanuel “Chris” Welch suggested lawmakers might explore ways to decouple from federal tax policies. “We hope it would minimize some of the damage that this bill is doing to states like Illinois,” Welch said of the so-called One Big Beautiful Bill Act.
Lawmakers “Ready to Move” on Transit Funding, but No Deal Yet
Illinois lawmakers return to Springfield aiming to resolve one of the biggest unfinished items from spring: stabilizing transit funding for Chicago-area systems facing steep shortfalls in coming years.
Earlier this year, the Regional Transportation Authority (RTA) projected a $771 million deficit for 2026, but a new report now lowers that estimate to $202 million — largely due to stronger sales tax revenue and transfers between transit agencies. Despite the improved forecast, officials warn that federal COVID-19 relief funds will be depleted by 2027, leaving the state with widening annual gaps of $789 million in 2027 and $888 million in 2028.
“The cliff is coming,” said Rep. Eva-Dina Delgado, D-Chicago, who is leading the House’s transit working group. “Maybe it’s next July for CTA, or 2027 for Pace — but it’s coming. We’re ready to move.”
Lawmakers and stakeholders agree new, sustainable revenue is needed — but how to raise it remains unresolved. A plan approved by the Senate in May proposed a mix of new taxes and fees, including:
- A $1.50 statewide delivery fee on online orders
- A real estate transfer tax in Cook and collar counties
- A rideshare and taxi tax
- A 3-cent-per-kilowatt-hour charge for electric vehicle charging
Together, those measures would have raised about $1.5 billion annually, but the House adjourned before considering the plan. Delgado said legislators are revisiting all options, emphasizing the need for revenue tied to transportation that can grow over time. Labor groups have drawn firm lines against using money from the state’s road fund or increasing tolls but remain open to other mechanisms.
“The reforms are easy to vote for — the funding is not,” said Illinois AFL-CIO President Tim Drea. “If you say you support public transit, you have to support it 100%, not just a little bit.”
While the updated deficit projection gives lawmakers breathing room, the RTA must adopt its 2026 budget in December, forcing contingency plans like fare hikes, hiring freezes, and layoffs if no new funding is secured. Some lawmakers warned that the smaller deficit shouldn’t delay action. Rep. Kam Buckner, D-Chicago, said the shifting numbers highlight the need for fiscal transparency and “real reform.”
Delgado said Illinois can’t afford to repeat Pennsylvania’s mistake, where gridlock led to service cuts in Philadelphia. “That’s giving us clarity about what we don’t want to do,” she said.
Lawmakers are expected to revisit the issue during the fall veto session. Delgado said the goal is a bipartisan plan that protects service levels while ensuring stable funding. “When I think about revenue for transit, I want it to be sustainable,” she said. “Something that’s related to transportation — and something that grows over time.”
CTA Proposes Fare Hikes
Chicagoans should expect to pay more for city trains and buses next year as the CTA looks to raise fares in the face of a looming fiscal crisis.
If the fare hikes of 25 cents per ride are approved by the agency’s board, it will be the first time the CTA has raised ticket prices since 2018. The fare increases come as the CTA has warned it could have to cut bus and train service by as much as 25% starting in the middle of next year.
Illinois Budget on Track for Deficit According to GOMB
Illinois is projected to run a $200 million deficit just three months into the current fiscal year, according to the Governor’s Office of Management and Budget (GOMB). If trends continue, the shortfall could balloon to $2.2 billion by the start of fiscal year 2027 next July.
GOMB’s annual five-year forecast, released Thursday, paints a cautious picture of the state’s finances. While these early projections often shift as new data comes in, the report highlights several growing fiscal pressures — from slowing corporate tax receipts to major changes in federal policy.
The report shows Illinois’ overall revenue outlook has weakened since May. The state now expects $54.8 billion in revenue for the current year — about $449 million less than projected last spring — against $55.1 billion in approved spending.
GOMB attributes much of the decline to lower-than-expected corporate tax revenue, global economic uncertainty, and new federal tax changes enacted under President Donald Trump’s “One Big Beautiful Bill Act.”
The new law includes several corporate tax breaks that could reduce Illinois’ revenue by $830 million in fiscal year 2026, according to the Illinois Department of Revenue. Because Illinois ties parts of its corporate tax code to federal law, these federal changes directly impact state collections. To offset the loss, GOMB is urging lawmakers to decouple portions of the state tax code from the federal system — a move House Speaker Chris Welch, D-Hillside, said is already under discussion for the fall veto session.
In response to the shortfall, Gov. JB Pritzker last month ordered state agencies to reserve 4% of their fiscal 2026 budgets and identify potential savings or efficiency measures. The administration also has a $100 million reserve fund it can draw on to plug short-term gaps.
Republican lawmakers criticized the governor’s approach, arguing that Democrats ignored warning signs of fiscal stress. Senate President Don Harmon, D-Oak Park, defended the state’s budgeting strategy, saying lawmakers acted responsibly based on the information available at the time. “You can’t predict the unpredictable,” Harmon said. “We did the best we could with the information we had.”
While GOMB expects to manage the current year’s shortfall, the long-term picture is more concerning. If no changes are made, the state’s deficit is projected to climb to $5.3 billion by fiscal year 2031.
A major driver is the shift in federal cost-sharing rules for social programs like the Supplemental Nutrition Assistance Program (SNAP) and Medicaid. Starting next October, states will cover half of SNAP administrative costs — up from 25% — and begin paying a share of benefits in 2027. Illinois’ higher SNAP error rate means the state could owe roughly $705 million annually once the policy takes effect.
At the same time, federal Medicaid funding is set to decline by $2.8 billion by FY31, while provider tax revenues that support the program are projected to fall sharply. Depending on how much the state fills in the gap, the Medicaid shortfall could reach between $1.7 billion and $4.5 billion in that year alone.
GOMB warned the state will have “very limited ability” to replace lost federal dollars, particularly for specialized grants that support local governments and community organizations. “The ability to fund new programs will be severely limited,” the report cautioned, signaling tough decisions ahead for lawmakers and advocates seeking new spending next spring.
Illinois Redistricting Talk
U.S. House Democratic Leader Hakeem Jeffries met virtually with members of Illinois’ congressional delegation Monday to discuss potential redistricting — a move already stirring concerns among some Democrats. No draft maps were presented during the meeting, but some versions of proposed boundaries have reportedly circulated in one-on-one conversations, according to a person familiar with the discussion who spoke on condition of anonymity.
“It’s what you’d expect. They’re trying to get another district,” the person said, adding that Republican Rep. Mary Miller’s downstate district appears to be the likely target. Miller is one of just three Republicans in Illinois’ 17-member delegation.
Another person on the call warned that adding another Democratic-leaning district could come at a cost. “At what cost do you try to get one more seat? How many more do you put in jeopardy?” the person asked.
The potential reshuffling comes as national Democrats look to expand their foothold ahead of the 2026 and 2028 election cycles, particularly in states where redistricting could tilt the balance in their favor. During a visit to Springfield earlier this month, Jeffries acknowledged that Democrats are weighing opportunities to gain seats in key states, including Illinois. He accused President Donald Trump of trying to “rig the midterms” and said Democrats would “respond in self-defense of the American people.”
If Illinois Democrats move forward, the General Assembly — which controls both chambers — would be responsible for approving any new congressional maps. So far, leaders in the Illinois House and Senate say there are no active discussions about altering district boundaries.
“We haven’t seen any maps. We haven’t had any conversations with our members about maps,” said House Speaker Emanuel “Chris” Welch, D-Hillside, when asked Monday about potential redistricting during the fall veto session. Still, lawmakers are back in Springfield this week, and the issue could surface in private caucus meetings.
The clock is ticking: candidates must file for congressional races by Nov. 3, meaning any revised map would need to be finalized before then. Election attorneys note that legislators could vote to extend filing deadlines if necessary.
Governor Pritzker did not comment on Monday but has previously left the door open to redistricting, despite his public reluctance. “None of us want to do it. None of us want to go through a redistricting process,” Pritzker said recently. “But if we’re forced to, it’s something we’ll consider doing.”
Republicans quickly pushed back on the idea of new maps. House GOP Leader Tony McCombie called the prospect “obscene,” arguing Democrats would be attempting to “erase” GOP representation despite Trump winning 44% of the Illinois vote in 2024.
Johnson Says House Will Stay Closed Until Shutdown Ends
House Speaker Mike Johnson (R-La.) said Friday that he will not call lawmakers back to Washington until the government shutdown concludes. “We will come back and get back to legislative session as soon as the Senate Democrats turn the lights back on,” Johnson told reporters at the Capitol, as the funding lapse stretched into its 10th day. “That’s the fact. That’s where we are.”
Johnson had previously canceled House votes on Sept. 29 and 30 — the last days before the shutdown — and again for the entire week following. The move was intended to pressure Senate Democrats to support the GOP-led stopgap spending bill, which passed the House last month. Despite Senate Republicans bringing the bill to the floor seven times over the past two weeks, Democrats have blocked it each time.
The House had been scheduled for a four-day session beginning Tuesday, but GOP leaders announced Friday that the first day is canceled. Johnson’s comments suggest the remaining days could also be scrapped if the shutdown continues.
Johnson rejected claims that his decision is politically motivated, saying lawmakers need to be home to assist constituents affected by the shutdown. “This is not a strategy call to keep the House working in their districts right now,” he said. “There’s an urgent necessity of it.”
He highlighted a $50 billion fund included in President Trump’s “big, beautiful bill,” enacted over the summer to support rural hospitals potentially harmed by Medicaid cuts. “Our members are out working diligently in their districts, serving their constituents right now,” Johnson added.
Four GOP Ideas Emerge for Compromise on Obamacare Subsidies
A menu of potential options is starting to take shape for extending Affordable Care Act (ACA) tax credits, a key point of contention in the ongoing government funding standoff.
With the shutdown moving forward, House Speaker Mike Johnson and Senate Majority Leader John Thune maintain that negotiations over enhanced subsidies will occur after the government reopens. Behind the scenes, however, Republicans on Capitol Hill and in the Trump administration are quietly discussing ways to prevent the tax credits from expiring at the end of the year.
According to sources familiar with private discussions, some House GOP leaders have begun informal conversations with officials from the White House Office of Legislative Affairs and the Domestic Policy Council to outline a potential deal. One idea under consideration is imposing minimum out-of-pocket premium payments for ACA enrollees, according to one source.
The challenge: any compromise must satisfy both Democrats and Republicans. Some GOP lawmakers argue the subsidies fuel waste, fraud, and abuse, while others fear letting them lapse would spike premiums and leave millions uninsured.
“About 90 percent of members of our conference feel strongly … that Obamacare itself and the subsidies have failed,” House Majority Leader Steve Scalise (R-La.) said Friday. “It’s helped insurance companies pack their bottom line, but it’s crushed families who are paying higher premiums.”
Four GOP Policy Options Under Discussion
- New Income Limits
Conservatives have criticized the expansion of ACA tax credits under President Biden, which removed income caps. House Republicans like Reps. Jen Kiggans (Va.) and Brian Fitzpatrick (Pa.) are considering reintroducing an income cap, possibly $200,000, to limit eligibility. Influential Democrats, including Sen. Patty Murray (D-Wash.) and Rep. Richard Neal (D-Mass.), have not ruled out the proposal, noting most beneficiaries earn less than $200,000.
- Minimum Out-of-Pocket Premiums
Data from the Paragon Health Institute highlight millions of “phantom enrollees” who may be unaware of their ACA coverage because it is fully subsidized. GOP senators like Dan Sullivan (R-Alaska) are exploring requiring a small minimum payment to encourage awareness and responsibility, even if nominal.
- Cutting Off Enhanced Credits for New Enrollees
A potential compromise could “grandfather” existing enrollees, letting them keep enhanced tax credits while preventing new enrollees from accessing the benefits. Supporters say this would curb waste and blunt the impact of premium hikes. Critics caution it could be unfair, especially as the labor market softens and Medicaid coverage changes affect vulnerable Americans.
- New Abortion Restrictions
Some conservative groups argue ACA plans indirectly subsidize abortion coverage and are pushing for restrictions on the subsidies. While GOP negotiators are sympathetic, Democrats, including Sens. Jeanne Shaheen (D-N.H.) and Ron Wyden (D-Ore.), have said abortion restrictions are a nonstarter in broader subsidy negotiations.
Despite internal GOP divisions, the back-channeling suggests the administration is preparing for eventual negotiations on ACA tax credits and broader health policy changes. “I think what we’re seeing is the dam breaking here,” House Appropriations Ranking Member Rosa DeLauro (D-Conn.) said Friday, noting the increased activity signals readiness for a deal.
Small Business Survey
In partnership with the Joliet Junior College EBC, we would appreciate your input in the cooperation with the Federal Reserve’s 2025 Small Business Credit Survey. It is an opportunity to ensure your experiences and challenges being reflected in the national decisions that affect your business.
Participation will help to:
- Shape the narrative around small business needs, both locally and nationally.
- Improve Programs: The findings are used to shape better small business lending and support programs.
- Access Valuable Insights: View federally produced reports that can be used for planning, advocacy, and strategic development.
The survey is confidential and takes minutes to complete. Your voice makes a difference. Please complete the survey by November 14th here:
Illinois Tollway Contracting with the Government Seminar
The Illinois Tollway is hosting its next Contracting with Government Event to educate small businesses on becoming certified to work with state agencies on October 23rd in Naperville, IL. Workshops will provide detailed instructions on the certification process and an onsite learning lab will give business owners hands on experience navigating state portals.
Registration is free
Thursday, October 23
8 a.m. to 3 p.m.
Matrix Convention Center
808 Illinois Route 59
Naperville, IL 60540
Illinois DCEO Announces Three Grant Program Deadlines
Tourism Attraction Grant Program
Tourism attractions can apply for grants ranging from $15,000-$200,000 offered by the Illinois Department of Commerce & Economic Opportunity (DCEO). Visit the DCEO website for more information about applying, including video training and other helpful resources to complete your application. Deadline to apply is Nov. 3 at 5 p.m.
Tourism Private Sector Grant Program
Tourism organizations and businesses in the private sector can apply for DCEO grants ranging from $10,000-$50,000. Visit the DCEO website for more information about applying, including video training and other helpful resources to complete your application. Deadline to apply is Nov. 3 at 5 p.m.
Marketing Partnership Program
The DCEO’s Marketing Partnership Program offers marketing grants ranging from $10k,000-$100,000. Visit the DCEO website for more information about applying, including video training and other helpful resources to complete your application. Deadline to apply is Nov. 3 at 5 p.m.
Stay well,
Mike Paone
Executive Vice President
Joliet Region Chamber of Commerce & Industry
mpaone@jolietchamber.com
815.727.5371 main
815.727.5373 direct