“Your Timely Roundup of Local, State, and Federal Updates”
Chamber members:
With fewer than three weeks until the Illinois General Assembly is scheduled to adjourn on May 31, lawmakers are racing to finalize a multibillion-dollar budget while contending with financial uncertainty tied to developments in Washington. As is typical during the final stretch of the spring session, interest groups, community advocates and lobbyists are crowding Capitol hallways, all seeking a share of limited public dollars.
At the same time, new federal data is adding pressure to the fiscal outlook. Inflation accelerated in April, driven in part by rising energy and food costs linked to the ongoing conflict in Iran. According to the U.S. Department of Labor, the consumer price index (CPI) climbed 3.8 percent over the past 12 months and increased 0.6 percent in April alone—slightly above economists’ expectations of a 3.7 percent annual rate, following 3.3 percent growth in March.
Energy prices rose sharply, increasing 3.8 percent in April. Food prices also ticked up, rising 0.5 percent over the month.
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President Trump Floats Idea to Pause Federal Gas Tax, but Will We Save in Illinois?
Rising gas prices driven by the U.S. conflict with Iran are reshaping the political and economic landscape in Washington, prompting a renewed push to suspend the federal gasoline tax as lawmakers search for ways to provide relief.
President Donald Trump said this week he wants to temporarily eliminate the federal gas tax to ease pressure on consumers facing sharply higher fuel costs. The tax, currently 18.4 cents per gallon on gasoline and 24.4 cents on diesel, adds a relatively small amount to each purchase but generates more than $23 billion annually for federal highway and transit programs. Trump acknowledged the savings per gallon would be modest but argued that “it’s still money” for struggling households.
Any suspension, however, would require approval from Congress, where momentum appears to be building but remains far from certain. Republican lawmakers including Josh Hawley and Anna Paulina Luna have announced plans to introduce legislation backing the idea, joining Democrats such as Mark Kelly and Richard Blumenthal, who have already proposed a temporary suspension through October. Still, key Republicans—including John Thune—have expressed skepticism about whether eliminating the tax would meaningfully lower prices.
The debate comes as fuel costs surge nationwide. Average gas prices have climbed to about $4.50 per gallon nationally and are nearing $5 in Illinois, with some areas exceeding that mark. Prices have spiked largely due to disruptions in global oil supply, particularly Iran’s interference with shipments through the Strait of Hormuz, a critical corridor for global crude flows.
The Trump administration has taken additional steps to stabilize prices, including releasing oil from the Strategic Petroleum Reserve and easing some restrictions on foreign oil already in transit. At the same time, U.S. officials are working with allies to secure shipping lanes in the region.
Even if Congress approves a federal gas tax holiday, the impact will vary by state. In Illinois, for example, drivers are unlikely to see full relief, as state fuel taxes, already among the highest in the country, are set to increase again on July 1 under existing law. Meanwhile, some neighboring states, including Indiana, have moved more aggressively by temporarily suspending their own fuel taxes.
In the end, the push to suspend the federal gas tax reflects a broader scramble in Washington: policymakers are weighing short-term consumer relief against long-term infrastructure funding needs, all while navigating the economic fallout of an escalating international conflict.
Proposal: Federal Minimum Wage to $25
Progressive lawmakers in Washington, D.C., are renewing their push to raise wages nationwide, introducing legislation that would gradually increase the federal minimum wage to $25 per hour.
The proposal, known as the “Living Wage for All Act,” was introduced Tuesday by Delia Ramirez, Chuy Garcia and Analilia Mejia, alongside a coalition of Democratic lawmakers, labor leaders and advocacy groups. The effort is being backed by One Fair Wage, which has been organizing nationally for higher wage standards.
Supporters argue the increase is long overdue. The federal minimum wage has remained at $7.25 per hour since 2009, despite years of rising living costs. Lawmakers including Ro Khanna, Rashida Tlaib and Greg Casar say a significant boost is necessary to help workers keep pace with inflation and basic expenses. Tlaib went further, arguing broader economic forces are driving affordability challenges.
The plan attempts to address concerns about business impact by phasing in the increase over time. Under the proposal, large employers would be required to reach the $25 wage by 2031, while smaller businesses would have until 2038 to comply. Ramirez pointed to her experience helping pass Illinois’ $15 minimum wage law as informing the structure, particularly the need to avoid disproportionately burdening small employers.
Even so, business groups are warning of serious consequences. Noah Finley of the National Federation of Independent Business said many small businesses are still struggling under Illinois’ current $15 wage floor. He argued that further increases could force employers to cut jobs, raise prices or scale back operations, citing survey data suggesting many businesses could not absorb higher labor costs.
Republican leaders are also pushing back. Tony McCombie said a major federal wage hike would add to the financial strain facing residents, particularly in rural communities already dealing with rising property taxes, energy costs and health care expenses. She also questioned whether such a proposal could be advanced under the current administration.
The federal effort comes as Illinois lawmakers weigh their own aggressive proposal. Illinois Senate Bill 3033 would raise the state minimum wage to $27 per hour, and its deadline for committee action has been extended into mid-May. Saru Jayaraman said she hopes momentum at the federal level will help move the Illinois measure forward as well.
Together, the state and federal proposals underscore a growing divide over wage policy, with Democrats framing higher pay as essential to economic stability and critics warning it could disrupt businesses and local economies.
Regular Wage While on Jury Duty Proposal
An Illinois Senate panel has advanced legislation that would require some employers to pay workers their regular wages while they serve on a jury, setting up a broader debate over who should bear the cost of civic duty.
The proposal, House Bill 4844, is being carried in the Senate by Robert Martwick, who says the goal is to remove financial barriers that discourage people from serving. Juror compensation is currently low—federal courts pay about $50 per day in Illinois, while county rates vary—leaving many workers facing a loss of income during service.
Under the bill, employers with more than 25 employees would be required to pay workers their regular wages for time spent on a jury. Supporters argue that without such protection, jury pools may skew toward those who can afford unpaid time off.
Business groups, however, are pushing back. Noah Finley of the National Federation of Independent Business said jury duty is a public responsibility that should be funded by the government—not private employers. He also raised concerns that the bill places no cap on how long employers would be required to continue paying workers during extended trials.
Trial attorneys and other supporters counter that employers are better positioned than individual workers to absorb the financial impact. Keith Hebeisen, speaking for the Illinois Trial Lawyers Association, acknowledged the burden but argued it is more manageable for businesses than for employees who may otherwise forgo service due to lost wages.
Some lawmakers have suggested alternative approaches. Jil Tracy agreed that juror pay is insufficient but questioned whether employers should shoulder the cost, proposing instead that the state create a dedicated fund to compensate jurors.
The Senate Executive Committee approved the measure in a 9–4 vote. It now heads to the full Senate, where lawmakers will weigh competing concerns over fairness to workers, costs to businesses and the need to maintain a representative jury system.
Broadband Funding Bottleneck
Illinois’ long-awaited broadband expansion is stuck in a federal bottleneck, prompting Governor JB Pritzker to step up pressure on the Trump administration to act.
In a letter sent Tuesday to Commerce Secretary Howard Lutnick, Governor Pritzker warned that a seven-month delay in approving the state’s $1.04 billion broadband plan is stalling hundreds of projects and leaving rural communities without reliable internet access. Providers, he said, are ready to begin work on 232 construction projects but remain in limbo awaiting federal sign-off.
“With each passing day, progress is stalled, costs rise and the financial impact for providers continues to grow,” Pritzker wrote, emphasizing that companies are prepared to “get shovels in the ground” as soon as approval is granted.
At issue is Illinois’ proposal under the Broadband Equity, Access, and Deployment Program, or BEAD, a $42.45 billion federal effort to expand high-speed internet access created under the 2021 infrastructure law. The state submitted its final plan on Sept. 30, but Pritzker says the National Telecommunications and Information Administration has exceeded its own 90-day review window. Illinois is now one of only two states—alongside California—still waiting for approval.
The delay, Pritzker argues, is having real-world consequences. More than 383,000 Illinois residents still lack dependable broadband, particularly in rural areas where schools, hospitals, libraries, farms and small businesses depend on expanded access to compete and operate effectively.
The standoff also reflects a broader policy shift in Washington. The Trump administration is weighing changes to the BEAD program that could steer more funding toward satellite-based internet providers, including services tied to Elon Musk and companies like SpaceX and Amazon. Low-Earth orbit satellite systems are being promoted by some officials as a faster, lower-cost alternative to building out fiber networks in remote areas.
Supporters of that approach say satellite technology could connect hard-to-reach communities more quickly while reducing taxpayer costs. Critics, however, warn that it may offer less reliable service over time and could leave rural regions dependent on a small number of providers.
For now, Illinois’ plan remains on hold, with state officials warning that continued delays could drive up costs, slow economic development and widen the digital divide for communities still waiting to get online.
Stay well,
Mike Paone
Executive Vice President
Joliet Region Chamber of Commerce & Industry
mpaone@jolietchamber.com
815.727.5371 main
815.727.5373 direct