“Your Timely Roundup of Local, State, and Federal Updates”
Chamber members:
Today we wrap up the government shutdown discussion (for now) while taking a look at how healthcare insurance rates are still uncertain. Last week information was shared on the massive transit funding bill here in Illinois and today there is more information on what was inside the 1,000 plus page bill.
*Government Affairs Roundup brought to you by CITGO*
Longest Shutdown in U.S. History Ends After 43 Days
The record-breaking 43-day government shutdown came to an abrupt close last Wednesday night, as the House approved a bill to reopen federal agencies and President Trump swiftly signed it into law.
Another funding fight, however, is already looming. The measure Congress passed funds military construction, veterans’ affairs, the Department of Agriculture and the legislative branch through Sept. 30, 2026, but only funds the rest of the government through Jan. 30, 2026 — setting up a new showdown early next year.
Democrats have indicated they plan to spotlight the issue that drove the shutdown — the extension of Affordable Care Act subsidies set to expire at the end of this year — as a major focus heading into the 2026 midterms. Senate Republicans have pledged to hold a vote on the subsidies in mid-December, though many in the party oppose extending them.
The House adopted the Senate-approved spending deal largely along party lines, 222–209. Six Democrats voted for the bill, while two Republicans voted against it. President Trump signed the measure Wednesday night in the Oval Office, joined by Republican lawmakers.
Although the shutdown has ended, several of its effects will take time to unwind. The availability of funding for the Supplemental Nutrition Assistance Program (SNAP), which supports 40 million low-income Americans, dominated debate in the final week of the standoff. The new legislation restores full SNAP funding through fiscal 2026, but The Hill reports that it could take up to another week for full payments to reach beneficiaries, depending on how states managed dwindling federal funds.
The aviation system is also expected to recover gradually. To maintain safety amid staffing shortages among air traffic controllers, flight capacity has been reduced by 6 percent. On Wednesday alone, more than 900 flights within, into or out of the U.S. were canceled and roughly 2,600 were delayed, according to FlightAware. Continued disruptions are likely for several days, if not longer.
Illinois Consumers Brace for Rising Health Insurance Costs as Subsidy Future Remains Uncertain
Illinois residents are confronting steep increases in health insurance costs for 2025, with the fate of enhanced Affordable Care Act (ACA) subsidies still unresolved after the recent federal shutdown. Hundreds of thousands could face significantly higher premiums if Congress fails to extend the enhanced tax credits that have lowered monthly insurance costs since 2021.
At the same time, many Illinois workers who get insurance through their employers are also preparing for sizable premium hikes. Nationwide, employer health benefit costs are expected to rise 6.5% next year — the largest jump since 2010 — according to a Mercer survey of more than 1,700 employers.
The potential expiration of the enhanced ACA subsidies — the same issue that drove the weeks-long shutdown — is a major factor behind rising exchange plan premiums. Illinois regulators say consumers could pay 78% more on average statewide if the subsidies lapse. Roughly 550,000 Illinoisans rely on exchange plans, and 91% currently receive the more generous tax credits.
“Everybody is going to be hit by this,” Illinois Department of Insurance Director Ann Gillespie warned at an October press conference.
While subsidies have always been part of the ACA marketplace, Congress temporarily expanded them during the COVID-19 pandemic and later extended them through 2025 under the Inflation Reduction Act. Democrats pushed to tie another extension to reopening the government during the shutdown but ultimately relented, agreeing to vote for a funding deal that left the subsidies unresolved.
The Senate is expected to vote on an extension in December, though prospects are uncertain. Many Republicans, including House Speaker Mike Johnson, oppose the enhanced credits — Johnson has called them a “boondoggle.” President Trump has proposed eliminating the subsidies entirely and sending funds directly to Americans instead.
If enhanced credits expire, lower- and higher-income Illinoisans would be among the most affected. Lower-income enrollees who currently pay little or nothing could see monthly premiums jump to $60 or more for mid-level plans, according to KFF estimates.
Those earning above 400% of the federal poverty level — $62,600 for an individual or $84,600 for a two-person household — would lose eligibility for subsidies altogether. “These are big increases,” said Katherine Hempstead of the Robert Wood Johnson Foundation. “We anticipate a lot of those people will drop coverage.”
Insurance brokers report widespread anxiety. Many clients face monthly premiums rising from tens of dollars to $100–$200, amounts that don’t fit into their budgets. “These are grave decisions,” said Jordan Wishner, a Chicago broker. “Only the people who truly need care will pay those prices.”
The Congressional Budget Office estimates that 4.2 million more people could become uninsured over the next decade if the enhanced credits disappear. Others, including University of Chicago health economist Robert Kaestner, expect the number to be closer to 2 million, as consumers seek alternative coverage. Ending the subsidies would save the federal government about $350 billion over 10 years.
While the subsidy fight is playing a central role in exchange-plan cost projections, it isn’t the only driver. Insurers cite rising health care utilization, higher prices for medical services and prescription drugs, and broader inflationary pressures — including tariffs — as key contributors. The trade group AHIP has urged Congress to extend the enhanced credits, while placing blame on hospitals and drugmakers for escalating costs.
Illinoisans with employer-based insurance are facing their own financial strain as companies finalize 2025 benefit packages. Premiums for family coverage through employers averaged nearly $27,000 this year, including employer and employee contributions, according to a KFF employer survey. Over the past five years, employer family premiums have risen 26% — faster than inflation but slower than wage growth.
Brokers say this year’s increases are some of the steepest in recent memory: many small-business plans are rising more than 20%, with some exceeding 40%. Unlike in tighter labor markets, employers are now more likely to pass those increases directly onto workers. “In the past, companies would eat the costs,” said Chicago broker Ryan Kennelly. “Now, they’re not.”
President Trump Rolls Back Tariffs on More Than 200 Food Products in Major Reversal
In an effort to ease voter frustration over soaring grocery prices, President Donald Trump on Friday signed an executive order lifting tariffs on more than 200 imported food products — a sharp pivot from the sweeping trade measures he imposed earlier this year.
The White House said the exemptions, which took effect retroactively at midnight Thursday, apply to foods not produced in the United States, including coffee, beef and bananas. Prices for all three had climbed significantly, in part because of the tariffs Trump enacted.
“Given the substantial progress in reciprocal trade negotiations,” the White House said, citing nine framework deals, two final reciprocal trade agreements, and two investment agreements, “President Trump has now determined that it is necessary and appropriate to further modify the scope of the reciprocal tariffs.”
Trump campaigned on lowering grocery costs “on day one,” and exit polls show Americans remain deeply frustrated with high prices. Administration officials emphasized that the groundwork for Friday’s reductions was set months ago and that more exemptions are not expected.
“The Trump administration is committed to a nimble, nuanced strategy,” spokesperson Kush Desai said. “President Trump’s tariffs are leveling the playing field for American workers and securing trillions in investments.”
Earlier this year, Trump disrupted global markets by imposing a 10% baseline tariff on all imports, along with additional country-specific rates. Friday’s rollback marks the most significant retreat from that policy to date.
Some industries welcomed the exemptions. FMI–The Food Industry Association praised the move, saying consumers and manufacturers alike would benefit. “Today’s action should help consumers, whose morning cup of coffee will hopefully become more affordable,” CEO Leslie Sarasin said, noting that tariffs had contributed to rising prices. “Reducing tariffs on a substantial volume of food imports is a critical step to ensuring adequate supply at prices consumers can afford.”
But the decision drew criticism from other corners. House Ways and Means Committee Ranking Member Richard Neal (D-Mass.) said the administration was simply “putting out a fire that they started.” The Distilled Spirits Council expressed sharp disappointment that spirits were excluded from the exemption list. CEO Chris Swonger warned that maintaining tariffs on EU and UK spirits — including Scotch, Cognac and Irish whiskey — risks damaging the hospitality industry during the holiday season. A 15% tariff on EU spirits alone could cost $1 billion in U.S. sales and eliminate 12,000 American jobs, the council’s analysis found.
The tariff rollbacks come a day after the administration announced a new trade framework with Switzerland, cutting tariffs on Swiss goods from 39% to 15%. Additional frameworks announced with Argentina, Ecuador, Guatemala and El Salvador would eliminate tariffs on certain foods and other items once finalized.
Meanwhile, a major legal challenge to Trump’s authority to impose tariffs without congressional approval is pending before the Supreme Court. Justices appeared skeptical of Trump’s sweeping interpretation of executive tariff power during arguments on Nov. 5.
For months, White House officials argued that foreign exporters would shoulder most of the tariff burden. But recent analyses contradict that claim. A Duke University study found that during the 2019–21 trade dispute, U.S. consumers paid prices for European wines that exceeded the tariff amount itself, meaning they absorbed costs beyond what the government collected.
A Goldman Sachs report estimates that U.S. consumers will ultimately pay 55% of the costs of Trump’s tariffs, U.S. businesses 22%, and foreign exporters 18%, as prices continue to adjust.
What Else Is in Illinois’ Sweeping Transit Bill
Illinois’ massive new public transportation bill — a more than 1,000-page package widely noted for plugging a major transit funding gap — reaches far beyond finances. Alongside $1.5 billion in new transit support and governance reforms for the Chicago region, Senate Bill 2111 lays out a broader vision for the state’s transportation future: expanding passenger rail, encouraging development near transit, overhauling parking requirements, and steering local and regional infrastructure priorities.
Major Rail Expansion Downstate
Two of the state’s largest downstate regions — Peoria and the Quad Cities — stand to benefit most from the bill’s rail provisions. The measure authorizes the Illinois Department of Transportation (IDOT) to use up to $476.7 million from two downstate transit funds to advance long-planned passenger rail routes from Chicago. Supporters hope the funding will finally cover the remaining costs for a Chicago–Quad Cities line.
Sen. Mike Halpin, D-Rock Island, said during an Oct. 31 news conference that the project is still years from completion and depends heavily on negotiations with Iowa Interstate Railroad, which controls the tracks needed for the route. Frustration has mounted as freight rail companies have refused to help finance the effort. “We decided this was an opportunity for the state and local governments to go it alone if necessary,” Halpin said.
But House Minority Leader Tony McCombie, R-Savanna, pushed back, noting the project cannot proceed until a deal is reached with the railroad. “To say you’re going to vote for this because there’s going to be a rail to Moline is false until that deal is made,” she said.
The bill also directs IDOT to study upgrades to Joliet’s busy rail station so it can serve as a hub for potential passenger service to Peoria and other non-Chicago destinations.
Expanding Metra’s Reach
The legislation gives Metra explicit authority to provide service outside the Chicago metropolitan area “when it is deemed beneficial to the state,” opening the door to new regional routes. It also orders the agency to study extending the Metra Electric Line from University Park to Kankakee.
Separately, the bill codifies that South Shore Line trains — operated by the Northern Indiana Commuter Transportation District — are allowed to stop at Metra stations on their way between South Bend and downtown Chicago.
Boosting Transit-Oriented Development
A major thrust of the bill is encouraging development near public transportation to increase ridership and reduce dependence on cars. Transit agencies would now have the authority to buy, build, own, operate or maintain residential or commercial developments.
Eligible areas include locations within:
- ½ mile of a train station, or
- ⅛ mile of a bus stop.
Sen. Ram Villivalam, D-Chicago, said he envisions more communities adopting models similar to Morton Grove, where the village has added new housing near its Metra station to give residents easy access to the city.
The new Northern Illinois Transit Authority (NITA) must also identify agency-owned parcels suitable for transit-supportive development. The bill establishes a state grant program — subject to legislative appropriations — to support projects that connect transit riders to outdoor recreation, such as expansions of existing service or improvements to related infrastructure.
Parking Reform to Encourage Transit Use
To further support transit-oriented growth, the bill creates the People Over Parking Act, prohibiting municipalities from imposing minimum parking requirements on developments near major transit stops:
- Within ½ mile of a transit hub (train station or intersecting high-frequency bus routes), or
- Within ⅛ mile of a high-frequency bus corridor.
Developers may still include parking voluntarily, but cities cannot mandate it.
Targeted Projects Across Illinois
Several communities receive specific project directives or funding opportunities:
- Chicago:
- Requires NITA to rebuild the long-closed Blue Line Central Avenue station in Austin.
- Requires a renovation or replacement of a Green Line station in Englewood.
- Oak Park and nearby suburbs:
- Allows NITA to share the cost of Green Line bridge repairs outside Chicago — applicable only to Oak Park.
- Provides annual reimbursements to Oak Park, River Forest, Forest Park and Rosemont for first responders covering CTA stations. Other communities with “L” stops — including Cicero, Evanston and Skokie — were not included.
- Metra Rock Island Line:
Riders on the line ending in Joliet will enter a regional rail scheduling pilot in 2027 aimed at improving transit access in Will and southwest Cook counties. - Springfield:
State lawmakers may appropriate funding next year to support daily commercial flights between Springfield’s airport and O’Hare, using money from the Downstate Public Transportation Fund.
The Funding Fight
The bill’s financing approach sparked the fiercest debate — particularly its redistribution of revenue from motor fuel sales.
Beginning next July:
- 80% of sales tax revenue on motor fuel will be directed to public transportation (up from 36%).
- 85% of that money will go to the Chicago region.
Republicans argued these dollars historically funded road projects — especially downstate — and warned that shifting them to transit would leave critical road needs unmet.
Villivalam countered that the revenue still supports transportation broadly: “That fund is for transportation, and public transit falls within transportation.”
To balance the shift:
- The bill keeps motor fuel taxes (separate from sales tax on fuel) flowing entirely into the Road Fund.
- 90% of the $200 million in annual interest generated by the Road Fund will now go to NITA.
Downstate transit agencies will receive increased operational support, with the state covering up to 80% of their expenses, compared with 65% under the current formula.
“Consequential” PJM Decision Could Impact Household Electricity Bills
PJM Interconnection, the regional grid operator serving 67 million Americans, is set to make a decision this week that could be one of the most consequential for electricity costs this decade. Depending on the outcome, households and businesses could save up to $70 per month on their utility bills.
The vote, scheduled for Nov. 19, will determine how new data centers are connected to the grid — a rapidly growing energy demand that experts warn could strain capacity and drive up costs for everyone else.
A coalition of state legislators submitted the Protecting Ratepayers Proposal to PJM on Monday, aiming to ensure that consumers are not forced to subsidize the electricity needs of large data centers. The proposal is part of PJM’s Critical Issues Fast Path (CIFP) initiative, launched in August to accelerate decisions on managing rapid load growth from data centers and other large customers. It draws on resolutions passed by the National Conference of State Legislators, proposals from the governors of Maryland, Virginia, New Jersey, and Pennsylvania, and input from the Data Center Coalition, Exelon, and the NRDC. “This isn’t often that leaders from so many states come together in a shared fight,” said DC Councilmember Charles Allen, emphasizing the regional significance of the decision.
Sen. Katie Fry Hester (D-Md.) noted that new data center demand is projected to reach 32 GW, with some forecasts suggesting it could grow to 60 GW in the coming years — roughly the equivalent of adding a major city like Philadelphia to the grid overnight.
Sen. Rachel Ventura (D-Ill.) stressed that data centers should “power their profits, not drain the wallets of everyday Americans.” Illinois is addressing the challenge through Senate Bill 25 (The Clean and Reliable Grid Affordability Act), which invests in battery storage, energy efficiency, and smart grid technology, adding 3 GW of storage that can be dispatched at peak times with no upfront cost to consumers.
The coalition’s plan would allow data centers to join PJM quickly, but they would be interruptible — curtailed first during periods of insufficient power — unless they bring their own capacity. Other components include:
- Fast-track options for data centers to bring their own firm power via new plants, demand response, or distributed resources, without displacing renewable projects or existing plants.
- Enhanced load forecasting to screen out speculative transmission projects.
- Temporary extension of the capacity market “price collar” to curb price spikes.
Advocates warn that unchecked growth could cost PJM ratepayers an additional $100 billion through 2033, translating to roughly $70 extra per month per household.
Legislators stressed that, while each state faces unique energy challenges, they share the goal of preventing ratepayers from subsidizing electricity for Fortune 500 data centers, including Google, Amazon, and Microsoft.
Delaware and Maryland have enacted transparency laws requiring utilities to report how they vote in PJM stakeholder processes. “It’s the wild west when it comes to data center siting,” said Sen. Stephanie Hansen (D-Del.). “States compete for jobs and revenue, but the cost to feed the energy monster is socialized to ratepayers.”
The coalition urges PJM to ensure renewable energy remains central to interconnection planning, and that decisions are made responsibly for the long term. “This is a marathon, not a sprint,” Hansen said, “and the starting gun has already sounded.”
Revenue-Based Financing Now Up to $500,000
Allies for Community Business is now offering larger loans via their new loan offering! A4CB’s revenue-based financing is available to established businesses who have a clear plan for growth.
Capital Eligibility
- Borrowers with no existing relationship with A4CB may be eligible for up to $100K
- Existing A4CB lending and coaching clients may be eligible for up to $250K
- Borrowers referred to A4CB by a banking referral partner who has known you for 2+ years may be eligible for up to $250K
- Existing A4CB clients who can offer collateral may be eligible for up to $500K
Revenue-based financing does not require a fixed repayment amount each month; instead, borrowers repay a fixed percentage of revenues earned each month. Personal collateral is not required for loans up to $250,000.
Click here to schedule a session with A4CB to discuss next steps. A meeting with a Community Lender is required before starting your application.
Stay well,
Mike Paone
Executive Vice President
Joliet Region Chamber of Commerce & Industry
mpaone@jolietchamber.com
815.727.5371 main
815.727.5373 direct