Government Affairs Roundup
“Your Timely Roundup of Local, State, and Federal Updates”
Chamber members:
It was a busy last day of the General Assembly veto session in which lawmakers passed bills to expand clean-energy projects and fund public transit systems across the region. That vote came just before the House wrapped at 2:35 a.m. The Senate wrapped up even later. More details below on veto session action.
The federal government shutdown has now entered its 36th day, breaking the record as the longest ever while impacting the lives of Americans with federal program cuts, flight delays and federal workers nationwide left without paychecks. There are continued rumblings on Capitol Hill about a potential deal to end the government shutdown. More below on the latest in this situation as Senators just wrapped their 14th failed attempt to fund the government.
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Veto Update
Here is a quick rundown of items not covered more in depth below:
- Elections
The House passed a bill allowing public officials to conceal certain personal information to protect against doxing. - Immigration
Senate Democrats unveiled a plan to address heightened federal immigration enforcement in the Chicago area. - Pensions
A House committee advanced legislation to reform the state’s Tier 2 pension system but pledged to hold off on final floor action until the spring. - Gambling
An additional amendment was filed to Senate Bill 1473, though no significant movement occurred on the proposal that could authorize two new horse racing tracks in Illinois. - Redistricting
Lawmakers are still weighing congressional map changes, with a possible special session under discussion.
- Vetoed Bill
The legislature did not override the governor’s only significant veto this year. Treasurer Michael Frerichs says he plans to collaborate with lawmakers and the governor this spring on new legislation to achieve the original goal — creating an investment pool for nonprofits.
$1.5 Billion Transit Funding Overhaul
In the early hours of Friday morning, Illinois lawmakers narrowly averted a looming “transit fiscal cliff,” passing a sweeping $1.5 billion package to stabilize and restructure the state’s mass transit systems. The plan, approved by the House and Senate after a marathon overnight session, redirects portions of the state’s gas tax and road fund revenue toward public transit, authorizes a sales tax increase in the Chicago region, and raises tolls statewide. Supporters hailed the legislation as “transformational,” while opponents blasted it as a blow to downstate road funding.
The House approved the measure 72–32, followed hours later by a 36–21 Senate vote, sending the bill to Gov. JB Pritzker’s desk. Democrats, who hold supermajorities in both chambers, largely voted in favor.
The passage capped years of negotiation and months of internal debate among Democrats — including a failed House plan earlier this week that Pritzker rejected for relying on new taxes on streaming services, concert tickets, and billionaires. The new plan, finalized in the final hours of session, blended familiar funding concepts with fresh revenue ideas designed to avoid broad new taxes.
To raise roughly $1.5 billion, the package draws from several major sources:
- $860 million in diverted state motor fuel sales tax revenue.
- $200 million from interest earned on the state’s road fund.
- $400 million from a 0.25 percentage point sales tax increase through the Regional Transportation Authority across the six-county Chicago area.
- To offset the loss of road construction funds, the bill also increases tolls on the Illinois Tollway by 45 cents per passenger vehicle and 30% for commercial trucks, generating between $750 million and $1 billion annually for highway maintenance and capital improvements.
“This bill gives us a way to make a transformational investment in transit without significantly raising taxes,” said state Rep. Eva-Dina Delgado (D-Chicago), a lead House negotiator. “Without action now, we could face 40% service cuts and widespread layoffs.”
Beyond funding, the bill reshapes the region’s transit oversight structure. It replaces the existing Regional Transportation Authority (RTA) with a new Northern Illinois Transit Authority (NITA), consolidating oversight of the Chicago Transit Authority, Metra, and Pace.
The NITA board would include 20 members — five each from the City of Chicago, suburban Cook County, the collar counties, and gubernatorial appointees. The three transit agencies would maintain their own “service boards” but would report directly to NITA, which would control fare-setting, service coordination, and infrastructure planning.
The bill also mandates new public safety and rider support initiatives, including a law enforcement task force led by the Cook County Sheriff’s Office and a “transit ambassador” program to assist passengers and improve safety across the system.
“This isn’t just another transportation bill — it’s a transformation bill,” said Rep. Kam Buckner (D-Chicago). “For 50 years, Illinois has tried to fix transit one piece at a time. This bill unifies the system and replaces fragmentation with coordination.” Sen. Ram Villivalam (D-Chicago), the Senate sponsor, called the measure “a consensus built after years of testimony and negotiation.”
Republicans and several downstate Democrats opposed the measure, arguing it siphons money away from highway projects critical to their districts. “I appreciate that this is five years of hard work for you,” said Rep. Ryan Spain (R-Peoria). “It’s six years of betrayal for me.”
Sen. Patrick Joyce (D-Essex) also voted “no,” citing concerns over the diversion of road fund dollars. GOP lawmakers estimated downstate regions could lose more than $400 million annually.
Under the bill’s formulas, about 85% of diverted motor fuel tax revenue will go to the Chicago-area transit fund, with 15% directed downstate — roughly $150 million in new support for regional systems outside metro Chicago. Democrats countered that the road fund’s legal definition already allows spending on public transit and emphasized that toll revenue would remain dedicated to highway work.
If signed by Gov. Pritzker, the plan would take effect June 1. Lawmakers said the new revenue will help prevent deep service cuts at CTA, Metra, and Pace as federal COVID relief funding runs out.
Illinois Lawmakers Approve Tax Code “Decoupling” to Avert Budget Shortfall
In a late-night vote on Halloween, Illinois lawmakers approved legislation to “decouple” parts of the state’s corporate tax code from recent federal tax changes — a move the Pritzker administration says is needed to help close a projected $267 million budget deficit in fiscal year 2026.
The measure, Senate Bill 1911, passed the House 76–33 and the Senate 37–19 early Friday morning. If signed by Gov. JB Pritzker, the bill would preserve roughly $250 million in state revenue that officials say Illinois would lose due to corporate tax cuts enacted at the federal level.
The decision stems from the federal One Big Beautiful Bill Act (House Resolution 1) which lowered corporate taxes and expanded deductions for certain business investments. Because Illinois’ tax code is partially tied to federal rules, those changes would automatically reduce state revenue unless lawmakers intervene.
Governor Pritzker’s Office of Management and Budget recommended decoupling earlier this fall, warning that without it, Illinois would forfeit significant revenue. “The purpose, ultimately, is to make sure we can pay the bills in the state of Illinois and not be hampered by Donald Trump and the big government bill,” Pritzker said last week.
The legislation includes several provisions aimed at stabilizing state finances while maintaining some business-friendly measures:
- Limiting federal deductions: The state will block a new federal rule allowing manufacturers to immediately deduct the full cost of certain assets, a change that would have reduced Illinois revenues by $144 million next year.
- Aligning on overseas profit taxation: Illinois will align with federal definitions for taxing multinational corporations’ overseas profits — expected to generate $90 million in FY26.
- Extending pass-through entity relief: A 2021 provision allowing small businesses to file as pass-through entities — reducing their federal tax burden without affecting state revenue — will be made permanent. Business advocates estimate the move will keep millions of dollars circulating in Illinois communities.
“That’s revenue that doesn’t have to go to D.C.,” said Maurice Scholten, president of the Taxpayers’ Federation of Illinois. “Illinois business owners can reinvest in their communities, grow their businesses, and hire workers.”
While Democrats framed the legislation as a responsible budget fix, business leaders and Republicans warned it amounts to a tax hike on employers. “We’re putting our businesses at a competitive disadvantage again,” said Rep. Dan Ugaste (R-Geneva). “Every other state that remains coupled to federal law will see savings for their businesses, while Illinois raises taxes instead.”
Illinois Manufacturers’ Association CEO Mark Denzler argued that restricting federal depreciation deductions will discourage investment. “This measure deprives manufacturers of important tax benefits that allow businesses to upgrade equipment, expand facilities, and grow jobs,” he said.
Republicans also argued that Illinois should capitalize on the federal corporate tax cuts to attract investment, not offset them. “When the federal government tries to add rocket fuel to manufacturing, we shouldn’t be the outlier,” said Rep. Amy Elik (R-Godfrey).
Even some tax policy experts who support budget stability warned of potential risks ahead. Scholten cautioned that repeated revenue fixes targeting businesses could have lasting consequences. “This change pushes Illinois’ corporate tax structure even further out of line with other states,” he said. “Relying on higher business taxes every time revenue falls short can create a cycle that weakens Illinois’ tax base in the long run.”
Lawmakers Approve Sweeping Illinois Energy Reform Package
After months of tense negotiations and years of buildup, Illinois lawmakers have passed a major overhaul of the state’s energy policy. The wide-ranging legislation — approved by both chambers this week with Governor Pritzker’s backing — aims to modernize Illinois’ power grid, boost renewable energy, and expand regulatory oversight.
The measure, Senate Bill 25, also known as the Clean and Reliable Grid Affordability Act (CRGA), passed the House 70–37 late Wednesday and the Senate 37–22 Thursday evening. Pritzker quickly pledged to sign it, calling it “a step toward lowering electricity costs for Illinois families.”
At its core, the bill funds energy storage development through a new charge on electric customers starting in 2030 — one of several major change’s supporters say will strengthen grid reliability and lower long-term costs. Sen. Steve Stadelman (D-Rockford), the bill’s sponsor, said the measure is designed to “make energy more affordable for ratepayers in the years ahead.”
“If we do nothing,” Stadelman said, “rates are going to continue to go up.”
Among the major provisions of the CRGA:
- Energy Storage Incentives: Establishes state-backed funding for battery storage projects to balance supply and demand on the grid.
- Energy Efficiency Programs: Expands requirements for utilities to implement efficiency measures that reduce overall energy consumption.
- Nuclear Energy: Lifts Illinois’ decades-old moratorium on new large-scale nuclear plants while increasing fees on existing nuclear operators.
- Regulatory Powers: Grants the Illinois Commerce Commission (ICC) new authority for long-term “integrated resource planning,” covering both power generation and demand management.
- Labor Protections: Requires union labor agreements for community solar projects, closing a loophole developers had previously used to avoid them.
- Clean Tech Expansion: Launches programs to support geothermal systems, thermal energy networks, virtual power plants, and time-of-use rate plans to help consumers manage energy costs.
- Data Center Emissions: Adds stricter standards for backup generators at data centers, a growing source of energy demand.
The Pritzker administration and renewable energy advocates called the bill a landmark step toward a cleaner, more affordable grid. “For far too long, private grid operators have been hiking up rates that make it harder for Illinois families to pay their bills,” Pritzker said. “This legislation is about creating a more reliable and cost-effective energy future.”
Supporters pointed to recent federal policy changes under the Trump administration, which rolled back clean energy incentives and disrupted renewables markets. They said Illinois’ action sends the opposite message. “This bill signals that the future is bright for renewables,” said David Braun of the Illinois-based firm Intelligent Generation. “It’s good news for the industry — and for ratepayers.”
Amy Heart, senior vice president of policy at Sunrun, said the law’s new “virtual power plant” program could change how local utilities operate. “By coordinating small-scale solar and battery systems across homes and businesses,” Heart said, “utilities can rely less on expensive wholesale power from other states.”
Environmental organizations, including the Illinois Clean Jobs Coalition, the Natural Resources Defense Council, and the Union of Concerned Scientists, also endorsed the bill. “This legislation strengthens Illinois’ clean energy goals and rebukes recent federal efforts to undermine cost-effective wind and solar power,” said James Gignac, Midwest policy director for the Union of Concerned Scientists.
Labor groups, initially hesitant, came on board after negotiators added union protections for solar construction projects. Joe Duffy of Climate Jobs Illinois praised the final deal, saying it “ensures the clean energy transition delivers good-paying, local union jobs.”
Despite bipartisan interest in energy reform, the CRGA drew sharp opposition from Republicans, business groups, and several Democrats, who argued the bill will raise utility bills and centralize too much authority under the governor’s administration. Sen. Willie Preston (D-Chicago) broke with his party, voting “no” over concerns that ratepayers would shoulder new costs. “I have to stand for people who can’t afford higher bills,” Preston said. “This package puts too much burden on working families.”
Business organizations echoed that sentiment. Phillip Golden, chair of the Illinois Industrial Electric Consumers, said the plan’s funding model “makes no sense, especially when the same goals could be achieved without forcing more costs on ratepayers.”
Republicans also criticized provisions granting expanded oversight powers to the Illinois Commerce Commission. “This is a huge overreach by the governor’s administration,” said Sen. Sue Rezin (R-Morris). “Five unelected officials he appoints will now have control over key energy decisions.”
Rezin — a longtime supporter of nuclear energy — argued that even though the bill lifts the state’s nuclear moratorium, regulators under the Pritzker administration are unlikely to greenlight new nuclear projects. “They’re going to go toward wind, solar, battery, and transmission — not nuclear,” she said.
Versions of the energy reform plan have circulated since 2024, when early drafts stalled amid disputes over costs and clean energy targets. Negotiations resumed in early 2025, leading to a compromise this fall that satisfied labor and environmental advocates but left business groups wary.
With the General Assembly’s approval and Pritzker’s promised signature, Illinois is set to implement its most comprehensive energy policy overhaul in at least four years — one that reshapes everything from how power is generated and stored to how residents pay their electric bills.
Lawmakers Search for Shutdown Exit as Pressure Mounts
After more than a month without a deal, both parties in Congress are searching for a way to end the ongoing government shutdown — now the longest in U.S. history. Lawmakers in both parties are feeling the strain, as public frustration grows and vital government programs begin to buckle under the funding freeze.
The effects of the shutdown are spreading quickly. Funding for the Supplemental Nutrition Assistance Program (SNAP) expired over the weekend, jeopardizing benefits for more than 40 million low-income Americans. A federal judge ordered the Agriculture Department on Friday to use emergency funds to keep the program operating, but those funds are limited.
Meanwhile, Americans shopping for health insurance under the Affordable Care Act (ACA) are facing rising premiums and uncertainty as the open enrollment period coincides with the shutdown.
Flight delays, missed federal paychecks, and suspended services are deepening the sense of urgency — and political risk — on Capitol Hill.
According to multiple reports, Democrats and Republicans are quietly exploring a potential off-ramp that would reopen the government while allowing both sides to save face. The discussions focus on two key issues:
- ACA subsidies that are set to expire at the end of the year.
- How long should a short-term funding measure last once the government reopens.
A group of eight moderate Senate Democrats has been meeting privately in the Capitol to craft a possible compromise. Their proposal would reopen the government in exchange for a guaranteed vote on extending ACA subsidies — though not a promise that those subsidies would ultimately pass.
Democrats want the health care subsidies tied directly to the funding bill; Republicans want the government reopened first, then a separate vote later. President Donald Trump remains a central figure in the standoff. He has urged Senate Republicans to eliminate the filibuster so they could pass a funding bill with a simple majority — a proposal that faces strong opposition from GOP leaders.
Senate Majority Leader John Thune (R-S.D.), a staunch defender of the filibuster, has warned against setting a precedent that could backfire if Democrats regain full control. Still, Thune and House Speaker Mike Johnson (R-La.) are signaling openness to a temporary funding extension into January, rather than December, to provide “a longer runway” for negotiations.
Talks remain early and fragile, with no formal deal in sight. Progressive Democrats are wary that any compromise could give up leverage without securing key health care protections. Some in the party are urging leadership to hold firm, arguing that Republicans must bear responsibility for the shutdown.
Inside the Senate, Democrats are divided over whether to accept a short-term deal simply to get the government reopened. Meanwhile, each passing day brings greater pressure — from voters, federal employees, and struggling families — for Congress to act. As one Democratic aide put it Monday night, “No one wants to own the longest shutdown in history. But unless someone bends soon, that’s exactly where we’re headed.”
President Trump Calls for Senate “Nuclear Option” to End Government Shutdown
President Donald Trump late last Thursday urged Senate Republicans to end the partial government shutdown by using the so-called “nuclear option” to eliminate the legislative filibuster.
Posting on his Truth Social platform, Trump claimed Democrats “want trillions of dollars to be taken from our Healthcare System and given to others, who are not deserving — people who have come into our country illegally, many from prisons and mental institutions.” He added that Republicans should seize the moment to “play their ‘TRUMP CARD,’ and go for what is called the Nuclear Option — get rid of the Filibuster, and get rid of it, NOW!”
President Trump argued that a future Senate Democratic majority would likely reduce the threshold for ending debate from 60 votes to a simple majority anyway, and Republicans should act first to pass a government funding bill.
The idea of eliminating the legislative filibuster has long been unpopular among Senate Republican leaders. Mitch McConnell, R-Ky., pledged during his 2017 term as Majority Leader not to change the filibuster, emphasizing the supermajority requirement to invoke cloture on legislation.
John Thune, R-S.D., reiterated his support for the filibuster in his January 3 floor speech as Senate Majority Leader, calling it “the Senate rule that today has perhaps the greatest impact in preserving the founders’ vision of the Senate.” On Friday, Thune’s spokesman Ryan Wrasse confirmed the leader’s position remains unchanged.
While Senate Republicans have faced less public pressure to eliminate the filibuster this Congress — thanks in part to passing much of their agenda through budget reconciliation — the ongoing shutdown has renewed calls for a nuclear option, a push Trump is likely to amplify.
During a Friday news conference, Speaker Mike Johnson (R-La.) weighed in on the Senate debate. While emphasizing that any filibuster change is a Senate decision, Johnson warned against eliminating it, citing potential Democratic efforts to pass controversial measures if they regain control of Congress and the White House.
“That’s a Senate chamber issue,” Johnson said. “The filibuster has traditionally been viewed as a very important safeguard.” He cited possible attempts to pack the Supreme Court or grant statehood to Puerto Rico and the District of Columbia as examples of policies Republicans would oppose under such a change. “If the shoe was on the other foot, I don’t think our team would like it,” Johnson added.
Trump Administration to Provide Partial November SNAP Benefits Amid Shutdown
The Trump administration will issue partial food stamp benefits for November, officials told a federal judge Monday, as the government shutdown nears a historic length. With no additional funds being tapped to cover the shortfall, the more than 40 million Americans enrolled in the Supplemental Nutrition Assistance Program (SNAP) will receive reduced payments. Officials warned that recalculations could also delay benefit distributions.
Two federal judges ruled Friday that the administration must use a $4.65 billion emergency fund before cutting SNAP benefits. But full November payments are expected to cost more than $9 billion, leaving a gap of roughly $4 billion. The USDA indicated it will not draw from other funding sources to fill that gap, calling such a move an “unacceptable risk.”
“Section 32 Child Nutrition Program funds are not a contingency fund for SNAP,” wrote Patrick Penn, the USDA official overseeing SNAP, in a sworn declaration Monday. “Using billions of dollars from Child Nutrition for SNAP would leave an unprecedented gap in funding that Congress has never had to fill, and USDA cannot predict how Congress would respond.”
As a result, households can expect reduced SNAP payments in November, with delays possible as the agency calculates partial disbursements.
Open Enrollment 2026: Navigating healthcare options for your small business
Thursday, November 13, 2025, at 1:00 PM
As small business owners compete with larger employers for talent, offering affordable health coverage has become increasingly challenging. With Open Enrollment for 2026 approaching and key marketplace subsidies set to expire, many entrepreneurs could face higher premiums and reduced coverage options. Now is the time to explore your options and ensure your business and employees are covered.
Join Small Business Majority, Affiliated Workers Association and Main Street Alliance for a free, interactive online seminar designed to help entrepreneurs, self-employed individuals and small employers navigate the Health Insurance Marketplace. They’ll break down the enrollment process, explore available plans and share practical tips to help you make informed, cost-effective decisions about coverage.
During this session, they’ll cover:
- An overview of the Health Insurance Marketplace and how it supports small businesses
- How to navigate Healthcare.gov and evaluate plan options
- Eligibility criteria for individuals, families and small business owners
- The documents and information needed to apply for coverage
- Q&A
Stay well,
Mike Paone
Executive Vice President
Joliet Region Chamber of Commerce & Industry
mpaone@jolietchamber.com
815.727.5371 main
815.727.5373 direct