Government Affairs Roundup
“Your Timely Roundup of Local, State, and Federal Updates”

Chamber members:

Today’s Roundup is packed with information. Make sure you read all the way through and don’t miss anything from shutdown talk to new state forecasts, and information on the celebration of Route 66 hitting 100 years.

Speaking of Route 66 celebration information, we’re happy to welcome Heritage Corridor Destinations President/CEO, Bob Navarro, as our speaker for the February member luncheon taking place on Thursday, February 26. Bob will highlight the first 100 miles of Route 66 in Illinois and share how communities are preparing to celebrate the highway’s centennial through special events and programs.  Attendees will also gain insight into the partnerships, tourism initiatives, and regional experiences HCD is helping to develop, and how these efforts are shaping the future of the corridor.

RSVP to join us here: https://members.jolietchamber.com/events/details/2026-member-lunch-february-26-route-66-at-100-experience-partnerships-the-road-ahead-7791


*Government Affairs Roundup brought to you by CITGO*

DHS Shutdown Possibilities
Will negotiations continue or are we facing a stalemate? The answer will determine whether the Department of Homeland Security shuts down on Friday night.

Democratic leaders Chuck Schumer and Hakeem Jeffries criticized a White House counterproposal delivered Monday evening, calling it too vague to meaningfully address concerns about President Donald Trump’s immigration enforcement agenda. “The initial GOP response is both incomplete and insufficient in terms of addressing the concerns Americans have about ICE’s lawless conduct,” the leaders said in a joint statement. “Democrats await additional detail and text.”

Notably, the response stopped short of an outright rejection. Schumer and Jeffries are discussing next steps with their respective caucuses, which could clarify whether negotiations continue — or collapse.

Neither side has publicly detailed the White House counteroffer to Democrats’ 10-point proposal. However, White House allies signaled Monday that one key Democratic demand — requiring federal law enforcement officials to obtain judicial warrants before entering private property — is “dead on arrival.”

Other Democratic proposals, including banning agents from wearing masks, requiring visible identification, and limiting where enforcement actions can take place, would require significant concessions to gain administration support, according to individuals close to the White House.

Still, the exchange of proposals has given Republican leaders some reason for cautious optimism. Senate Majority Leader John Thune indicated he may move forward on a continuing resolution (CR) to buy negotiators additional time.

Whether a short-term funding measure can pass depends largely on the tone and trajectory of DHS talks by Thursday, when senators hope to leave Washington. Republicans will need at least seven Democratic votes in the Senate to prevent a shutdown. Some Democrats have signaled openness — but only if negotiations are genuine.

“It depends on whether we’re making progress or not,” Sen. Jeanne Shaheen said Monday. “We’ve got some time. Hopefully people will be working to try and get something done.”

The duration of a stopgap measure remains unsettled. GOP appropriators favor at least a two-week extension, though Thune acknowledged that “the length will have to be negotiated.”

Despite procedural steps toward a funding extension, momentum appears limited. Thune on Tuesday initiated the process that would allow a vote on another DHS funding patch — a move many interpret as preparation for a likely lapse.

Democratic support remains uncertain. While Schumer declined to rule out backing a stopgap measure, other key Democrats are currently opposed. Sens. Dick Durbin and Catherine Cortez Masto — both of whom previously helped end last year’s record-setting shutdown — have indicated they would vote “no.”

Sen. Chris Murphy, the top Democrat on the Homeland Security funding panel, placed responsibility squarely on Republicans. He said Democrats have proposed funding non-immigration DHS functions while continuing negotiations over immigration enforcement authorities.

“If you poll our caucus, there would be a lot of support for a continuing resolution for other agencies like TSA and FEMA,” Murphy said. “[Republicans] are shutting down all the rest of DHS — we’re willing to fund the other parts.”

Even if DHS funding lapses Friday night, the immediate operational impact may be uneven. ICE, Customs and Border Protection, and U.S. Citizenship and Immigration Services would be among the least affected agencies. The administration has some flexibility to mitigate disruption across Secretary Kristi Noem’s department, reducing short-term pressure to strike a deal.

But the clock is ticking. If TSA screeners miss full paychecks in mid-March, airport security lines could grow longer. FEMA, meanwhile, would eventually need to limit reimbursements to states responding to disasters. Congress may be able to buy time — but not indefinitely.

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Senate Talks to Revive ACA Tax Credits Stall
Efforts in the Senate to revive enhanced Affordable Care Act (ACA) premium tax credits appear to be collapsing, with lawmakers on both sides signaling that negotiations have reached a dead end.

The enhanced subsidies expired at the end of last year and talks to extend them — even temporarily — now seem to be fizzling out. Sen. Bernie Moreno (R-Ohio), who has led Republican negotiations, described his latest proposal as the “best and final” offer from his party. But Democrats expressed little optimism it could move forward.

According to The Wall Street Journal, Moreno has acknowledged that “it’s effectively over,” while Sen. Susan Collins (R-Maine), who previously partnered with Moreno on a two-year extension proposal introduced in December, described the situation as “certainly difficult.”

Negotiations had centered on Moreno’s revised proposal for a one-year extension of the enhanced subsidies, a scaled-back version of the earlier bipartisan two-year plan he introduced with Collins. But a Democratic staffer told The Hill that Moreno’s proposal lacked sufficient support within the Republican conference and that many GOP lawmakers were never inclined to extend the subsidies in the first place.

“It just seems clear, frankly, that most Republicans don’t want to expand the tax credits — that is just the boring reality,” the staffer said, noting that it has already been a month since the subsidies officially expired. “I just don’t think there’s a path forward because of that.”

Beyond broader political resistance, negotiations appear to have broken down over abortion-related provisions included in the Republican proposal. Sen. Tim Kaine (D-Va.) said Democrats asked Moreno on Tuesday to remove new Hyde Amendment language from the bill. The Hyde Amendment bars the use of federal funds for abortions. According to Kaine, Democrats were willing to accept the ACA’s original 2010 Hyde framework — “status quo ante” — but objected to what they described as a new and expanded restriction tied to health savings accounts (HSAs).

“We had agreed Hyde status quo ante from the ACA, as it was passed in 2010. No change,” Kaine said. “The proposal that they put on the table has a new, significant Hyde provision … within the HSA, and we said you need to take that out. And my understanding is that they said that they can’t.”

That impasse appears to have sealed the bill’s fate. Several Democratic senators suggested the talks were losing priority on the Republican side.

“A lot of those discussions have already been deprioritized by this administration and by leadership here on the Republican side,” said Sen. Andy Kim (D-N.J.). “I want to keep it going, and we’re going to continue to push, but that’s been something that we’ve already seen in motion.”

Sen. Ron Wyden (D-Ore.) was even more blunt, dismissing the proposal outright: “I think the Moreno bill is a lemon and I’m not buying it.”

What Comes Next? With Republicans signaling limited appetite for extending the subsidies and Democrats rejecting the current proposal over abortion-related language, prospects for reviving the enhanced ACA tax credits appear dim. Absent a breakthrough, the expired subsidies are likely to remain lapsed — at least for now.

U.S. House Overwhelmingly Passes Bipartisan Housing Package
The House on Monday overwhelmingly approved a sweeping bipartisan housing package aimed at addressing the nation’s affordability crisis and expanding homeownership opportunities.

The legislation — titled the Housing for the 21st Century Act — passed by a decisive 390-9 vote. The bill is sponsored by House Financial Services Committee Chair French Hill (R-Ark.) and ranking member Maxine Waters (D-Calif.). It cleared committee in December with similarly strong bipartisan support.

The package includes more than 20 provisions designed to increase housing supply and modernize federal housing programs. Among other measures, it would:

  • Direct the Government Accountability Office to study gaps and inefficiencies in federal housing programs

 

  • Modernize the Department of Housing and Urban Development’s HOME Investment Partnerships Program

 

  • Reduce regulatory barriers that lawmakers say limit development

 

  • Provide greater flexibility for local banks and communities to expand housing supply

Supporters argue the bill focuses on supply-side solutions to combat rising home prices.

“When there aren’t enough homes, prices go up,” Hill and Rep. Mike Flood (R-Neb.) wrote in a joint op-ed last week. “The Housing for the 21st Century Act includes real, bipartisan solutions to boost development by clearing out red tape and letting communities and local banks do their job. That’s how we expand supply, lower costs and give families more options.”

Speaker Mike Johnson (R-La.) echoed that message following passage of the bill, blaming high housing costs in part on inflation and regulatory burdens. “Housing costs have soared beyond the reach of millions of American families … while outdated and burdensome red tape has constrained our nation’s affordable housing supply,” Johnson said. He described the legislation as “a critical step toward addressing this shortage by reducing unnecessary regulatory barriers, modernizing HUD programs, and giving banks flexibility to deploy capital.”

More than 50 organizations have endorsed the bill, according to a press release. Supporters include the Affordable Housing Tax Credit Coalition, the American Hotel and Lodging Association, and Americans for Prosperity — reflecting an unusually wide ideological range of backing.

The bill now heads to the Senate, where changes are likely. Last year, Sens. Tim Scott (R-S.C.) and Elizabeth Warren (D-Mass.) introduced their own bipartisan housing proposal, the ROAD to Housing Act. Lawmakers attempted to attach portions of that measure to the National Defense Authorization Act in December, but those efforts fell short.

Hill said at the time he looked forward to working with Senate counterparts “to send a bill to the president’s desk that reflects the views of both chambers.” Whether the Senate will take up the House-passed package in full or pursue a negotiated compromise remains to be seen.

Moody’s Forecast: Illinois Facing Job Losses and Renewed Population Decline
Illinois is projected to lose jobs and resume population decline this year, a combination that economists warn will weigh on the state’s economy for several years.

A new forecast from Moody’s Analytics, prepared for the Illinois Commission on Government Forecasting & Accountability, predicts statewide job losses in 2026 and 2027 — the first annual employment declines since the pandemic in 2020. The report also projects that Illinois’ population, which had only recently begun to stabilize, will shrink again and rank among the weakest in the nation in the coming years.

“The resumption of population loss will drag on overall job and income growth,” Moody’s said.

Moody’s expects Illinois to lose roughly 8,000 jobs this year, a decline of 0.1%. By comparison, employment is projected to grow 0.1% in the Midwest and 0.3% nationally.

The state’s unemployment rate is forecast to rise from 4.6% to 5.2% by the end of the year, above the Midwest and national averages of 4.6%. In the region, only Michigan is expected to post a higher rate, at 5.9%. Illinois’ projected unemployment rate would fall between New York (5%) and California (5.6%). Job growth is expected to resume in 2028.

Personal income growth in Illinois is also trailing. In the second quarter of 2025, income rose 4.6% year over year, compared with 4.7% in the Midwest and 5.1% nationally.

Chicago remains a relatively bright spot, supported by logistics, finance and tourism. While growth in the city is expected to slow, Moody’s said it should continue to outperform the rest of the state. Downstate, weakness in agriculture and manufacturing — particularly in Peoria, Rockford, the Quad Cities and Decatur — is expected to weigh on overall performance.

Moody’s attributes much of the slowdown to federal trade and immigration policies under President Donald Trump.

Illinois has above-average exposure to foreign trade and depends heavily on manufacturing, logistics and agriculture. Higher tariffs have raised input costs and dampened demand, while retaliation from trade partners has hurt exports. About 40% of Illinois’ foreign shipments go to Canada and Mexico.

“The benefits [of tax cuts] are almost entirely overshadowed by the uncertainty and the margin-squeezing effects of tariffs,” Moody’s said.

Agriculture has been in recession for several years. Since peaking in 2022, farm income in Illinois has fallen more sharply than in the Midwest or the nation overall.

A recent U.S.-China trade agreement has stabilized soybean exports, and $12 billion in proposed federal farm relief could provide support. However, Moody’s cautioned that the agreement remains fragile and exports are unlikely to return to prior levels, keeping supply high and prices low.

The firm also noted that its assumed 10% effective tariff rate could prove too high if additional trade deals are reached or if court rulings reduce tariff authority.

Chicago’s white-collar economy presents a mixed picture. Companies have reduced management, technology and back-office roles to cut costs. Temporary employment has been particularly weak, often an early indicator of broader labor softness.

Moody’s also warned that concerns about an artificial intelligence bubble could delay a rebound in tech hiring.

Banking and financial services are performing better. Federal Reserve rate cuts and a steepening yield curve have supported bank profitability and hiring, a trend Moody’s expects to continue in the near term.

Stricter immigration enforcement and new federal policies are expected to reduce the inflow of new residents. Census estimates already show slower population growth between July 2024 and July 2025, driven in part by reduced immigration. Because Illinois relies heavily on immigration for workforce growth, further declines would add pressure to both the labor market and tax base.

The Moody’s forecast comes one week after the Governor’s Office of Management & Budget projected hundreds of millions of dollars less in state revenue due to federal tax-law changes and warned of potential reductions in federal support for safety net programs.

Together, the reports present a challenging backdrop for Gov. JB Pritzker and lawmakers as they craft the state budget. Moody’s warned that Illinois remains vulnerable to an economic downturn due to limited reserves and high fixed costs, including long-term pension obligations.

“Potential budget shortfalls in Illinois and the City of Chicago mean lawmakers may need to consider a mix of revenue enhancements and spending adjustments,” the report said, cautioning that such measures could dampen consumer spending.

While the state has improved its credit standing in recent years, revenue growth has slowed from post-pandemic highs. Pension liabilities remain a long-term structural challenge that will take decades to resolve.

Senate President Reacts to Pension Overhaul Proposal
Illinois Senate President Don Harmon urged caution on Governor JB Pritzker’s latest proposal to overhaul the state’s pension funding system. While backing the governor’s long-term goal of fully funding pensions, Harmon questioned whether the spring session is the right time to act.

In a wide-ranging interview the Senate president said the policy itself is sound, but the fiscal climate may not be. Harmon said he supports Pritzker’s plan to move Illinois to a fully funded pension system by 2048, calling it responsible long-term policy. The proposal would briefly extend the state’s pension amortization ramp and accelerate payments using surplus revenues.

“I totally support the governor on moving to a fully 100 percent funded model that his proposal includes,” Harmon said, adding that the temporary ramp extension “makes sense.”

As covered last week, Pritzker revived the proposal — first introduced during his 2024 budget address — arguing it would strengthen Illinois’ long-term fiscal footing while building on balanced budgets and eight credit rating upgrades achieved in recent years.

Despite his support for the concept, Harmon signaled hesitation about advancing the plan this year. “I don’t know if this is the year to do it, because I don’t think we do that in isolation,” he said. “There are some other competing pressures on funding pensions and level of pension benefits, and I think the price tag right now may be too much to pay, when tomorrow morning, we could be another billion dollars in the hole because of a tweet.”

Harmon was referencing uncertainty tied to President Donald Trump and federal actions that could significantly affect state revenues and spending obligations. With Washington’s fiscal decisions potentially reshaping Illinois’ budget outlook, Harmon suggested lawmakers may need to preserve flexibility rather than commit to major structural changes now.

You can’t predict the unpredictable,” Harmon said. “We’re going to try to pass the most responsible balanced budget that we can pass with the information we have at the time.”

For now, while the Senate president shares the governor’s end goal of fully funding pensions, he appears inclined to proceed cautiously — prioritizing short-term fiscal stability amid broader economic uncertainty.

New Taxes on Billionaires, Corporations and Digital Ads are Floating in Springfield
Illinois Senate Democrats are advancing a series of proposals to raise taxes on digital advertising, billionaires and corporations, arguing the state’s tax system unfairly burdens working families while allowing the wealthy to avoid paying their share.

At a Capitol press conference, several Democratic lawmakers outlined their plans, joined by activists and members of the Illinois Revenue Alliance, a coalition of labor unions and advocacy groups backing the effort.

State Sen. Robert Peters (D-Chicago) called for a new tax on digital advertising, arguing that major tech companies generate significant revenue from online ads while contributing too little to state coffers. “What we need is a digital ad tax,” Peters said. “We need to take the money from these ultra-rich billionaires and make it so fewer people have to go to a food pantry, make it so a safety net hospital is able to stay open, make it so people have comfort and a roof over their head.”

Lawmakers are also pursuing a broader “billionaire wealth tax.” State Sen. Karina Villa (D-West Chicago) has introduced Senate Bill 3376, which would apply Illinois’ personal income tax to unrealized gains — the appreciation of assets — held by billionaires. According to Olivia Guerrero, spokesperson for Senate Democrats, the measure is intended to protect “essential services from looming cuts in federal funding.”

“Currently, the income tax system largely focuses on wages rather than overall change in financial resources, allowing the wealthiest individuals to avoid paying taxes on massive increases in wealth,” Guerrero said, citing data from the Institute on Taxation and Economic Policy that ranks Illinois as having the eighth most regressive tax system in the nation.

In the House, Rep. Hoan Huynh (D-Chicago) has introduced the Billionaire Hedge Fund Fee Act (HB 4366), which would impose a fee on certain financial transactions beginning July 1, 2026.

State Sen. Robert Martwick (D-Chicago) said Illinois’ overall tax structure places too much pressure on ordinary residents. “If you live in Illinois, you pay a greater percentage of your income in taxes than almost anyone of any income stratus anywhere in the country,” Martwick said. “That’s not right.”

Villa also tied the proposals to federal budget cuts under President Donald Trump, criticizing reductions in federal spending and calling on Illinois to act independently. “We in Illinois need to be the adults in the room,” Villa said. “We need to tax those corporations and those billionaires.”

When asked whether higher taxes could drive businesses out of Illinois, State Sen. Rachel Ventura (D-Joliet) rejected that concern. “The answer is how can we not?” Ventura said. “The economy — it’s not going to keep working if we give all of our money away to the rich. That’s not our labor force.”

Republicans pushed back, signaling they believe spending — not taxes — should be the focus as lawmakers prepare the next state budget.

Senate Republican Leader John Curran (R-Downers Grove) noted that last year’s budget included spending reductions, including a rollback of health care coverage for certain undocumented working-age adults — a move Gov. JB Pritzker later acknowledged was necessary.

“That was something that the governor, in his budget address, readily admitted, that it was a mistake to go down that road and the state could not afford that,” Curran said.

Curran also pointed out that Illinois’ fiscal year 2026 budget is roughly $2 billion higher than the previous year and that overall state spending has increased by about 43% or $16 billion annually since Pritzker took office in 2019.

Governor Pritzker is scheduled to deliver his fiscal year 2027 budget address on February 18. Curran said he plans to meet with the governor the day before.

As budget negotiations begin, the debate is shaping up around two competing approaches: raising new revenue from wealthy individuals and corporations, or restraining spending growth in a tightening fiscal environment.

2026 Marks 100 Years for Iconic Route 66
Governor JB Pritzker, the Illinois Department of Commerce and Economic Opportunity (DCEO), and the Illinois Department of Agriculture (IDOA) joined the Illinois Route 66 Centennial Commission and tourism partners from across the state to celebrate the official kickoff of the Route 66 Centennial, marking 100 years since the creation of the highway. Also known as the “Mother Road,” Route 66 begins in Chicago and runs through the heart of Illinois — connecting communities and travelers for a century.

“Throughout 2026, we’ll recognize 100 years of Route 66, a road that helped shape Illinois into what it is today. That’s why my administration is proud to provide attraction and site infrastructure along this iconic route and deliver millions in grant funding to local tourism bureaus,” said Governor JB Pritzker. “I invite all Illinoisans to take part in the many celebrations throughout the year — it’s a chance to check out the beauty of a truly American road and soak in all that Route 66 and our state have to offer.”

“Across Illinois, our communities are showing up to celebrate 100 years of connection. From Michigan Avenue through Springfield and the small towns that line the route, Route 66 has shaped our history and identity,” said Lieutenant Governor Juliana Stratton, an appointed Commissioner on the Route 66 Centennial Commission. “Illinois is home to sweeping prairie landscapes, welcoming Main Streets, rich cultural destinations, and world-class cities. I’m proud to welcome visitors from near and far to experience the people, places, and stories that make Illinois truly special.”

Illinois continues to prioritize its growing tourism industry as millions of visitors from around the world boost economic development and support jobs in the industry. Illinois reached its highest-ever hotel tax revenue figures in FY25 with $367 million — a 14% increase over the previous record set in FY24. Additionally, Illinois welcomed 113 million visitors who spent a record-breaking $48.5 billion in 2024 — representing 500,000 more travelers and $1.3 billion more in spending compared to 2023.

In recognition of the centennial, DCEO is awarding nearly $4 million in grant funding to local tourism bureaus to support development, education, preservation, and promotion efforts of Route 66 activities throughout Illinois. These awards will help communities enhance visitor experiences, preserve historic assets, and showcase Illinois’ unique role in Route 66 history.

“Tourism is a powerful economic driver for Illinois, and Route 66 is one of our greatest assets,” said DCEO Director Kristin Richards. “These grants will help communities tell their stories, preserve their history, and attract visitors from across the country, ensuring the legacy of Route 66 continues to shine statewide.”

Grantee Region Award
Bloomington-Normal Area Convention and Visitors Bureau North Central $513,378
Discover Downstate Illinois Southwest $18,600
Chicago Convention and Tourism Bureau Northeast $160,000
Great Rivers and Routes Tourism Bureau Southwest $1,633,000
Heritage Corridor Convention and Visitors Bureau Northeast $1,000,000
Logan County Tourism Bureau Central $465,695
Springfield Convention and Visitors Bureau Central $200,000

The Route 66 Grant Program is funding several standout projects in 2026 to create even more must-see stops along America’s most iconic highway. An Abraham Lincoln penny sculpture will soon be installed in Lincoln, while Granite City will honor President Lincoln with a towering 14-foot statue. Springfield’s famous Giant Slide at the Illinois State Fairgrounds is getting a fresh look for the Route 66 Centennial, and Joliet is transforming part of the Old Joliet Prison grounds into a baseball field for events, representing the long history of organized baseball played at the prison. Since 2021, DCEO’s Illinois Office of Tourism has invested $19 million in Route 66 projects to drive tourism forward over the last several years.

For the centennial, the Illinois State Fair’s theme for 2026 will be “Miles of Smiles,” in honor of Route 66 and its enduring impact on the state’s communities, culture, and tourism. The theme will be featured at both the Springfield and Du Quoin fairs, highlighting Route 66’s legacy through special exhibits, programming, and experiences for fairgoers of all ages.

The Illinois Route 66 Centennial Commission also has scheduled celebration events across the state throughout 2026, with additional events and announcements forthcoming. These activities will spotlight Illinois’ historic Route 66 attractions, local businesses, and community traditions, all while inviting visitors to explore the Mother Road from end to end.

“The Centennial of Route 66 reminds us that America’s most iconic road was built mile by mile, town by town, and community by community. Its storied past inspires our shared future — a century behind us, a lifetime of journeys ahead — that’s the promise Route 66 has in Illinois,” said Cory Jobe, President & CEO of Great Rivers and Routes Tourism Bureau.

Learn more about the centennial and local events by visiting enjoyillinois.com/things-to-do/route-66-in-illinois.

Joliet Data Center Open House Invite
Hillwood and PowerHouse Data Centers are committed to thoughtfully planning and developing infrastructure that supports economic growth while being good neighbors to the communities they serve.

On February 12, they will host an open house to showcase their proposed Joliet Technology Center. Joliet residents are invited to attend and to learn more about this project that brings modern digital infrastructure to Joliet and positions the community for new business attraction, growth opportunities for existing local businesses and long-term economic growth.

Date: February 12, 2026
Time: 4:00 PM to 7:00 PM CST
Location: Joliet Community College, Building U – Auditorium
1215 Houbolt Rd, Joliet, IL 60431

Please click here to RSVP

The community open house will provide an opportunity for attendees to preview current project plans, view informational displays, and speak directly with project representatives in an informal, drop-in setting. Attendees will be able to ask questions, provide feedback, and explore materials at their own pace. Staff will be available to walk through project details, clarify any aspects of the plans, and gather community input.

For those unable to attend, project information will be made available online following the event.

Grant Information:
Federal Grant Support Program
Application Deadline: General announcement open with no specific due dates for applications
Grant Description: DCEO will make $15 million available to Illinois-based businesses and organizations seeking competitive federal grants. This match program will encourage more applicants to apply for federal grant opportunities, provide critical assistance to meet the minimum match eligibility requirements and increase the competitiveness of applications.

Clean Energy Contractor Incubator Program 
Application Deadline: Feb. 16, 2026
Grant Description: The Clean Energy Contractor Incubator Program will provide eligible contractors with access to low-cost capital, support for obtaining insurance, assistance registering to become vendors for state incentive programs, connections with firms hiring contractors and subcontractors, and other vital services. Participating contractors will receive training, mentoring and support to build their businesses, connect to projects, compete for capital, and execute clean energy-related project installations and subcontracts.

Stay well,

Mike Paone
Executive Vice President
Joliet Region Chamber of Commerce & Industry
mpaone@jolietchamber.com
815.727.5371 main
815.727.5373 direct