Government Affairs Roundup
“Your Timely Roundup of Local, State, and Federal Updates”
Chamber members:
July 1 is a significant date for state government, as it ushers in the start of the 2027 fiscal year and the implementation of a $55.9 billion state budget. Along with the new budget comes a series of tax changes aimed at generating several hundred million dollars in additional revenue. Among the most notable is a new tax based on the number of users a social media company has within the state. Today also marks the official launch of the new Department of Early Childhood, signaling a continued investment in early learning and care.
Mark your calendars for what will be another informative event on July 15 as we welcome in Illinois Department of Transportation Secretary Gia Biagi as the featured speaker at our July Member Luncheon. You can rsvp here: https://members.jolietchamber.com/events/details/2026-member-lunch-july-15-idot-project-updates-with-gia-biagi-secretary-of-transportation-7833
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Governor Pritzker Signs 62 New Laws, Many Delayed Until 2027
Illinois Governor J.B. Pritzker signed 62 bills into law over the weekend, with most set to take effect over the next year. Of those, 14 laws took effect immediately, including a measure making cocktails-to-go permanent.
Retail Coupon Availability
House Bill 45 was originally introduced to require retailers to provide paper versions of digital coupons. However, after significant opposition from retailers, the bill was amended to remove that requirement.
The revised law allows retailers to determine how coupons are distributed and redeemed, rather than mandating paper alternatives or automatic application of discounts.
State Rep. Janet Yang Rohr said the changes were made to balance consumer access with retailer flexibility.
“This bill as amended gives retailers the flexibility to make sure that all consumers and their customers will get these advertised digital coupons,” Yang Rohr said. “The original bill required a paper coupon, which was the source of much of the opposition. The amended bill removes that requirement and allows retailers to choose whichever method works best.”
A key provision of the law allows consumers to take legal action if valid coupons are refused or not applied, but only after giving retailers a two-week window to resolve the issue.
The law takes effect Jan. 1.
Rental Transparency
House Bill 3564 targets so-called “junk fees” in rental agreements and increases transparency for tenants.
Effective Jan. 1, the law prohibits landlords from charging fees for lease renewals or modifications, eviction notices, routine maintenance, and after-hours maintenance requests, among other charges.
It also caps application and background check fees at $50, unless a third-party screening costs more. In those cases, landlords must pay upfront and provide tenants with a receipt within 14 days.
Additionally, landlords must list all non-optional fees on the first page of a lease. Tenants are not required to pay any fee not disclosed upfront. Violations may result in civil liability.
Swipe Fees Delayed
Governor Pritzker also signed Senate Bill 3645, which delays the implementation of several laws, including a controversial measure addressing credit card swipe fees.
The original law would have prohibited financial institutions from charging interchange fees on the tax and tip portions of transactions. Industry estimates suggested the change could shift $120 million to $200 million annually from banks to retailers. Illinois would have been the first state to adopt such a policy.
The law has now been delayed until at least July 1, 2027, after already being postponed twice. Its future remains uncertain following a federal judge’s permanent injunction issued earlier this month.
Kalshi Sues Illinois Over Sports Betting Rules
Prediction market company Kalshi filed a lawsuit against Illinois, challenging new regulations that classify prediction markets as sports wagering operators.
The lawsuit comes in response to new taxes and licensing requirements included in the state’s $55.9 billion budget. Under the law, prediction market platforms would face a 1.75% tax on the first 5 million wagers annually and 3.5% on additional wagers. They would also be required to obtain a state sports betting license.
Illinois regulators argue that platforms like Kalshi function similarly to sportsbooks but do not follow the same tax and reporting requirements. Kalshi disputes that classification, claiming its markets fall under federal oversight by the Commodity Futures Trading Commission (CFTC).
In its complaint, Kalshi argues that complying with Illinois’ licensing and geolocation requirements would conflict with federal rules requiring nationwide market access. The company is seeking to block enforcement of the law before it takes effect, citing potential criminal penalties for noncompliance.
The lawsuit is part of a broader legal dispute over whether prediction markets should be regulated as gambling or as financial instruments, similar to commodities trading.
Inflation Reaches 4.1% in May, Highest Level in Three Years
Inflation climbed to its highest level in more than three years in May, as prices continued to rise across the economy at an accelerated pace, according to new data released by the U.S. Commerce Department.
The personal consumption expenditures (PCE) price index — a key measure of inflation — increased 4.1% over the past year and 0.7% in May alone. Core inflation, which excludes food and energy, rose 3.4% year-over-year and 0.3% for the month.
The 4.1% annual increase marks the highest rate since April 2023 and follows several months of steady price growth, driven in part by global instability. Inflation had already remained above the Federal Reserve’s 2% target before geopolitical tensions escalated earlier this year.
Rising energy and food costs, fueled by disruptions to global supply chains, including impacts on major trade routes, have contributed to broader price increases across the economy. As a result, affordability pressures continue to build for many households.
Teachers Unions Call for Special Session, Increased Education Funding
The Chicago Teachers Union and the Illinois Federation of Teachers are urging state leaders to convene a special legislative session to increase funding for public education.
At a recent press conference, Jitu Brown joined union leaders in arguing that Illinois must go beyond its current evidence-based funding model. Brown said the state still owes schools significant resources and should invest more to address longstanding inequities.
“The $2 billion that we are owed just adequately funds, but when you are repairing harm, you have to fund above and beyond,” Brown said. Brown also called on Brandon Johnson to replicate his December 2025 decision to direct $1 billion in tax-increment financing (TIF) funds to Chicago Public Schools.
CTU President Stacy Davis Gates echoed those demands, calling on J.B. Pritzker to both convene a special session and pursue new revenue from high-income taxpayers.
Speaking in Chicago the same day, Governor Pritzker acknowledged ongoing funding challenges but pointed to consistent increases in state support for education. “Indeed, every year I have increased funding for our K-12 education. It’s almost $3 billion in total,” the governor said.
Stay well,
Mike Paone
Executive Vice President
Joliet Region Chamber of Commerce & Industry
mpaone@jolietchamber.com
815.727.5371 main
815.727.5373 direct