Government Affairs Roundup
“Your Timely Roundup of Local, State, and Federal Updates”
Chamber members:
Information can be found below on the most recent chain of events leading to a partial government shutdown and where that now stands. Additionally, Governor Pritzker is talking about a Pension fix again.
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Congress Ends Partial Shutdown … For Now
The House voted Tuesday to end a nearly four-day partial government shutdown, approving a funding package that restores operations for previously shuttered federal agencies and provides a short-term extension for the Department of Homeland Security.
The legislation passed by a narrow 217–214 vote and was sent to President Trump’s desk, where it was quickly signed into law Tuesday afternoon. While bipartisan, the vote underscored deep divisions: 21 Republicans opposed the measure, while only 21 Democrats supported it.
The measure funds most federal departments through September 30, the end of the fiscal year, while providing DHS with an additional 10 days of funding, through February 13. The package is a “minibus” combining five full-year appropriations bills covering the departments of Energy, Defense, Treasury, State, Labor, Transportation, Health and Human Services, and Education, along with the judicial branch and several independent agencies.
The House had already passed all six appropriations bills as a single package in January, but Senate Democrats blocked that version amid outrage over the death of Minneapolis nurse Alex Pretti last month by federal immigration enforcement agents.
After a turbulent week in the Senate, Republicans and congressional appropriators retreated from the original six-bill approach. Negotiations between the White House and top Senate Democrats ultimately produced an agreement to remove the DHS bill from the package and replace it with a short-term funding extension.
Funding for DHS lapsed from Saturday until Tuesday, when the House approved the revised measure and the president signed it into law. Despite the shutdown’s end, lawmakers are expected to continue battling over immigration policy and potential reforms to Immigration and Customs Enforcement, the issue that initially triggered the impasse.
The bipartisan vote came only after a dramatic procedural showdown earlier Tuesday, as House Republican leaders worked to secure support from a small group of holdouts pressing demands related to separate election-related legislation.
DHS Funding Fight in High Gear
With the broader partial government shutdown now resolved, attention on Capitol Hill is squarely focused on the next major funding test: the Department of Homeland Security.
As mentioned above, the bill signed Tuesday by President Trump funds DHS only through February 13, giving Congress just 10 days to reach a longer-term agreement or pass another stopgap measure. Lawmakers broadly agree that some action — either a deal or a short-term extension — is likely before the deadline, though the shape of that agreement remains uncertain.
Until recently, Congress appeared on track to approve all appropriations bills with strong bipartisan support ahead of the Jan. 30 funding deadline. That path unraveled when Democrats began demanding policy changes tied to immigration enforcement as a condition for supporting DHS funding, forcing lawmakers to carve DHS out of the broader package and triggering a brief funding lapse.
While the dispute has centered on Immigration and Customs Enforcement and Customs and Border Protection, DHS funding affects far more than immigration enforcement. The department oversees the Transportation Security Administration, the Federal Emergency Management Agency, the Coast Guard, and cybersecurity and disaster-response operations that lawmakers in both parties are eager to keep running.
Even if DHS funding were to lapse, a shutdown would not immediately halt all operations. Immigration enforcement agencies have significant funding remaining from prior legislation, and the administration could designate key DHS functions — including border security and aviation screening — as essential services, allowing them to continue during a funding gap. Still, a shutdown would disrupt planning, delay nonessential work, and create uncertainty across the department.
Negotiations now underway reflect divisions both between and within the parties. Senate Democrats, led by Minority Leader Chuck Schumer (D-N.Y.), are pushing for policy concessions, including limits on roving immigration patrols, tighter warrant standards, new rules governing use of force, bans on face coverings for federal officers, and requirements for body cameras and visible identification.
Some Republicans, including Johnson, have signaled openness to discussing certain guardrails, though GOP leaders have rejected more sweeping proposals. Conservative Republicans remain firmly opposed to any DHS policy changes, while demanding their own priorities, such as tougher measures targeting so-called sanctuary cities.
At the same time, progressive House Democrats are pressing leadership to take a harder line, including calls to scale back ICE operations nationwide. If those demands are not met, progressives are urging Democrats to oppose a DHS funding bill outright.
Senate Majority Leader John Thune (R-S.D.) said negotiations would begin “right away” now that the broader funding bill has passed, though he acknowledged that final decisions will likely be shaped by talks between Senate Democrats and the White House. Thune also said the Senate is prepared to move to another short-term funding extension if talks stall, buying negotiators more time.
Any deal would still need to clear both chambers — a process that could push lawmakers up against the February 13 deadline. While frustration is mounting among Democrats over current DHS policies, the prevailing expectation on Capitol Hill is that Congress will act to avoid a prolonged DHS shutdown, either through a negotiated agreement or another temporary funding patch.
Governor Pritzker Pension Push Revival
Governor JB Pritzker is renewing his push to shore up Illinois’ pension systems, unveiling a set of proposals this week aimed at reducing long-term risk for taxpayers and retirees while building on the state’s recent fiscal improvements.
At the center of the plan is a two-year extension of the state’s pension buyout program through fiscal year 2028. The voluntary program allows certain retirees to accept lump-sum payments in exchange for reduced future benefits. Since its creation in 2018, the program has paid out about $2.05 billion and reduced unfunded liabilities by an estimated $2.9 billion. The governor’s office projects an additional $1.4 billion reduction if the program is extended.
Pritzker is also reviving a broader pension funding proposal first introduced during his 2024 budget address. That plan would increase the state’s statutory pension funding target from 90% to 100% by 2048, replacing current law that aims for 90% funding by 2045. As existing debts — including pension obligation bonds and backlog bonds — are paid off in the coming years, a portion of the savings would be redirected toward higher pension contributions to accelerate progress.
The governor is further proposing to use unexpected surplus revenues to pay down pension debt. That includes directing excess funds from the state account used to pay tax refunds into the pension system once all refunds have been issued, rather than allowing those dollars to flow back into general operations as current law permits.
Pritzker framed the proposals as an extension of Illinois’ recent fiscal turnaround, citing seven consecutive balanced budgets, the elimination of the bill backlog, 10 credit rating upgrades and a rainy-day fund approaching $2.5 billion. He also pointed to growing uncertainty around federal funding as a reason to reduce long-term liabilities now, while the state is on firmer footing.
Another key component of the governor’s plan addresses concerns over benefits for employees hired after 2010, known as Tier 2. Those benefits have raised questions about compliance with federal “Safe Harbor” rules, which require public pensions to provide benefits at least equal to Social Security. Failure to meet that standard could ultimately force the state to make up the difference through court action.
Pritzker’s proposal would adjust the Tier 2 pensionable earnings cap to match the Social Security wage base and bring benefits into compliance with federal requirements. Lawmakers set aside $75 million in the current budget to help cover potential costs, though the pension systems have said the total price tag remains unclear.
Despite years of hearings and negotiations, the General Assembly has yet to advance a comprehensive pension reform package. Labor unions, including the We Are One coalition, argue the governor’s approach does not go far enough to address recruitment and retention challenges driven by Tier 2 benefits. The group is backing its own proposal, which passed a House committee last fall but stalled amid agreement to continue negotiations this spring. Pritzker has said that bill needs “a lot more work” before moving forward.
Illinois’ pension systems remain deeply underfunded, though recent reports show modest progress. A November analysis by the Commission on Government Forecasting and Accountability found the systems were 47.8% funded, up from 43.8% in 2021. The state’s unfunded liability stood at $143.5 billion in 2025, down slightly from the previous year — the first decline in four years.
Pritzker is expected to lay out his pension proposals in greater detail when he presents his budget to the General Assembly later this month (February 18). Whether lawmakers act on any of the ideas before adjournment in late May remains an open question.
Illinois Department of Agriculture Announces $3.6 Million in Grant Funds for Local Food Infrastructure
The Illinois Department of Agriculture (IDOA) announced plans to distribute $3.6 million in fiscal year 2026 at the Everything Local conference in Springfield. The funds, which were appropriated in the FY26 state budget, will be used to support local food processing, aggregation, and distribution. Grants will be available for collaborative projects from $1,000 to $250,000 and for individual projects from $1,000 to $75,000.
“Strong agriculture depends on strong infrastructure,” said IDOA Director Jerry Costello II. “The Local Food Infrastructure Grant program gives Illinois farmers the processing, aggregation, and distribution capacity they need to ensure Illinois-grown food can reach consumers.”
Applications for grant funding will be available February 18, 2026, on the Illinois Department of Agriculture website.
“Everyone benefits when we empower our local farmers,” said State Senator Doris Turner (D-Springfield), Chair of the Senate Agriculture Committee. “By fortifying the food system, we are supporting our local farmers and mitigating food insecurity. This funding will expand access to fresh, local foods, strengthen the local economy and grow the food supply chain.”
“When we say farm-to-home food, we forget about the critical infrastructure in between,” said State Senator David Koehler (D-Peoria), member of the Senate Agriculture Committee. “This investment ensures that our food makes it from farm to local food processor and distribution safely and cleanly to your plates at home.”
“With food prices rising across Illinois, investing in local food infrastructure is no longer optional, it’s essential,” said State Representative Sonya Harper (D-Chicago), Chair of the House Agriculture and Conservation Committee. “We created this program to strengthen our farmers, shorten the supply chain and ensure Illinois families can access affordable, locally grown food. I’ve spent my career fighting to move our state from food deserts and fragile systems toward real, durable solutions, and this investment helps put that vision into action.”
Eligible applicants include Illinois residents who store, process, package, aggregate or distribute value-added agricultural products or plan to do so. These entities must meet one of the following criteria:
- an Illinois farm with fewer than 50 employees
- an Illinois cooperative with fewer than 50 employees
- an Illinois slaughter and/or processing facility with fewer than 50 employees. Slaughter and/or processing facilities must be USDA or state licensed or be a custom exempt slaughter and/or processing facility
- an Illinois food business with fewer than 50 employees
- an Illinois food hub with fewer than 50 employees
- an Illinois nonprofit organization
- a unit of local government in Illinois
To encourage further expansion of the local food industry, all grant funding must be used for purchasing, leasing to own, renting, building or installing infrastructure related to the processing, storage, aggregation, or distribution of value-added agricultural products.
Those interested can prepare for the upcoming application by pre-registering with SAM.gov and the GATA Grantee Portal.
Additional information about the program, supporting links and helpful guidance on getting ahead on the application can be found on the Department’s website.
Ben & Jerry’s Foundation – The National Grassroots Organizing Program (NGO) offers two-year unrestricted, general operating support grants of up to $30,000 per year, with an average grant size of $20,000 per year, to small (budgets under $350,000), constituent-led grassroots organizations throughout the United States and its territories.
Applications on a rolling basis.
Deadline: Feb. 16th, 2026
APPLY HERE.
Stay well,
Mike Paone
Executive Vice President
Joliet Region Chamber of Commerce & Industry
mpaone@jolietchamber.com
815.727.5371 main
815.727.5373 direct