Government Affairs Roundup
“Your Timely Roundup of Local, State, and Federal Updates”
Chamber members:
Seems like I’m constantly wishing all have made it through a storm unharmed. Be sure to see more information in the near future regarding assistance if impacted by the weather.
I wanted to mention an informative session that we co-hosted today with the Entrepreneur & Business Center from Joliet Junior College and the Joliet City Center Partnership. We were joined by Brianna Smith from the Chicago Federal Reserve Bank as she was able to share a wealth of information regarding mainly small businesses here in Will County as opposed to trends state and countrywide. We’re certainly better off in some areas, but need to stay afloat in others.
Going forward, we’re looking forward to furthering our partnership with them to gather feedback on an ongoing basis to see where your needs are as a business owner. Additionally, we look to offer more learning opportunities through their office.
Finally, if you haven’t done so already, mark your calendar for August 27 as we welcome Joliet Mayor Terry D’Arcy to deliver his annual State of the City address at The Renaissance Center. Reservations are open, but time is running out to join us – https://members.jolietchamber.com/events/details/2026-member-lunch-august-27-state-of-the-city-address-with-mayor-terry-d-arcy-7841
*Government Affairs Roundup brought to you by CITGO*
New Laws Address Cash Payments and Jury Duty Compensation
Illinois consumers will continue to have the option to pay with cash under a new law signed by Governor JB Pritzker on Friday.
House Bill 4592 requires most retailers that employ staff to process in-person transactions to accept cash payments for purchases under $500. Businesses are not required to accept bills larger than $20. The law is set to take effect in 2028.
Several exemptions are included. The requirement does not apply to self-checkout transactions, overnight sales, situations where a business temporarily runs out of cash, membership-only establishments, or purchases made by phone or online. Businesses that fail to comply may face fines.
Supporters say the measure protects consumer choice and ensures access for individuals who rely on cash for everyday purchases. “For many Illinois residents, cash remains a dependable and necessary way to pay,” said Sen. Christopher Belt, D-Swansea. “People deserve the freedom to choose how they pay.”
The cash payment measure was one of 87 bills signed into law Friday.
In a separate action, House Bill 4844 expands worker protections related to jury duty. The new law requires employers to pay employees their full regular wages while they are serving on a jury. Businesses with 25 or fewer employees are exempt from this requirement. The jury duty pay provision takes effect immediately.
Governor Pritzker Signs Bills Expanding State Oversight of Insurance Rate Hikes
Governor JB Pritzker signed a pair of measures giving the Illinois Department of Insurance new authority to review and, if necessary, reject rate increases for homeowners and auto insurance policies.
Speaking at a bill signing ceremony in Chicago, Gov. Pritzker said insurers should be required to justify premium hikes. “If you’re telling your customers that rate increases are necessary, you should be able to prove why,” he said.
Until now, Illinois was one of only two states—along with Wyoming—that did not actively regulate insurance rates. The new laws, which take effect July 1, 2027, prohibit insurers from charging rates that are “excessive, inadequate, or unfairly discriminatory,” and bar companies from shifting the cost of out-of-state losses onto Illinois policyholders.
The legislation comes amid recent spikes in premiums. Illinois-based State Farm announced in 2024 that it would raise homeowners’ insurance rates by an average of 27.2% statewide. Meanwhile, Illinois drivers saw auto insurance rates rise about 18% two years ago, according to Alexi Giannoulias.
Insurance companies have attributed those increases to inflation, higher repair costs, and, in the case of homeowners insurance, more frequent extreme weather events. More recently, State Farm said it reduced auto insurance premiums in Illinois by an average of 15% in 2025.
State regulators acknowledge that rate increases can be justified but say the new laws will ensure greater accountability. Ann Gillespie said the measures will require insurers to back up rate changes with credible, Illinois-specific data whenever possible.
“While no state legislation can fully eliminate the pressures driving premiums, these laws ensure that rate increases reflect real conditions in Illinois,” Gillespie said.
House Bill 4273, which addresses homeowners’ insurance, requires insurers to provide at least 60 days’ notice before raising premiums by more than 10%. It also mandates the use of reliable, state-specific claims data when available, though companies may supplement with regional or national data to meet actuarial standards.
Insurers will still be allowed to implement new rates once filed, but the Department of Insurance can review those filings and order rebates if rates are later deemed excessive or unfairly discriminatory.
Senate Bill 714, focused on auto insurance, requires 30 days’ notice for premium increases above 10% and grants similar review and rebate authority to regulators.
Giannoulias, who advocated for the auto insurance measure, has criticized insurers for using factors such as credit scores or ZIP codes when setting rates. While the final law does not explicitly ban those practices, it prohibits rates that result in unfair discrimination.
“For far too many Illinois families, the cost of mandatory auto insurance has become unsustainable,” Giannoulias said. “That forces difficult financial decisions and leads to more uninsured drivers on the road.”
Insurance industry groups have strongly opposed the new laws. In a joint statement, the Illinois Insurance Association, American Property Casualty Insurance Association, and National Association of Mutual Insurance Companies warned the measures could reduce competition and drive up costs.
They argued the changes represent a significant shift toward a stricter regulatory model similar to states like California, making it harder for insurers to adjust rates in response to real-time market conditions.
Pritzker dismissed those concerns, arguing the legislation is aimed at transparency and fairness. “What’s driving higher costs is when companies issue bills that people can’t afford and that don’t reflect what’s actually happening,” he said.
The new laws mark a major change in Illinois’ approach to insurance regulation, introducing formal oversight of rate-setting practices for the first time.
Lawmakers Clash Over How to Address Social Security Shortfall
With the projected insolvency of the Social Security Trust Fund drawing closer, lawmakers on the U.S. Senate Finance Committee met Wednesday to discuss how to begin tackling the issue. But instead of agreeing on a path forward, the hearing exposed deep divisions over how to fix the program’s long-term finances.
Without action, Social Security is expected to face insolvency by 2032, triggering automatic benefit cuts estimated between 22% and 28%. That would reduce the average monthly benefit by roughly $500.
Democrats and Republicans remain at odds over potential solutions, including whether to create an advisory commission to guide reforms.
Sen. Ron Wyden, the committee’s ranking member, criticized the commission proposal, arguing it could be used to push through benefit cuts without sufficient public scrutiny. “I want to work on a bipartisan basis to fix this problem,” Wyden said. “We can do that by updating Social Security to reflect today’s economy and asking billionaires to pay their fair share.”
Under current law, Social Security payroll taxes apply only to income up to roughly $185,000, allowing higher earners to avoid additional contributions above that threshold.
Republicans pushed back on that approach. Sen. Bill Cassidy warned that failing to act would lead to steep benefit reductions, while other options—such as large tax increases or additional borrowing—carry their own economic risks. “If we don’t fix it, there will be a 22% to 28% cut in benefits,” Cassidy said. “Or we raise taxes dramatically, or we borrow more and damage the country’s credit. Every year we wait, it gets worse.”
Sen. Ron Johnson argued that significantly increasing payroll taxes would slow economic growth and fundamentally change the nature of the program. He also sharply criticized the system’s structure, calling it unsustainable without major reforms.
The debate comes as Social Security continues to place increasing pressure on the federal budget. According to the Joint Economic Committee, spending on programs for seniors accounted for between $350 billion and $520 billion of the federal deficit in 2025, depending on how interest costs are calculated.
Policy experts who testified at the hearing urged lawmakers to act sooner rather than later. Representatives from groups such as the Committee for a Responsible Federal Budget and AARP expressed support for both forming a commission and pursuing measures to increase trust fund revenue.
Charles Blahous of the Mercatus Center cautioned that revenue increases alone will not solve the problem. He told lawmakers that controlling the growth of future benefits must also be part of any long-term solution.
Blahous noted that the current benefit formula ties payouts to wage growth, which can outpace the system’s funding under existing tax rules. As a result, younger workers could bear a disproportionate share of the burden. “If no further contributions to solvency are made by older generations, future workers will effectively be worse off due to Social Security,” he said in his testimony.
Looking ahead, congressional projections indicate that if current trends continue, more than half of federal spending could go toward benefits for Americans age 65 and older by 2036.
Despite broad agreement that action is needed, lawmakers left the hearing without consensus, underscoring the political and economic challenges of reforming one of the nation’s most significant entitlement programs.
Work Halted on Key Asian Carp Barrier Project Near Joliet
Construction has been halted on the long-planned Brandon Road Interbasin Project near Joliet, a critical effort aimed at preventing invasive Asian carp from reaching the Great Lakes.
Contractors received a stop-work order on July 24, citing an administrative review by the U.S. Army Corps of Engineers. The pause comes after months of delays tied to federal funding decisions under the administration of President Trump.
The project had been gearing up to begin construction this week, with shaft drilling scheduled for September. About $2 million in materials had already been delivered to the site, and job trailers were in place, according to Will County officials.
Governor JB Pritzker sharply criticized the decision, calling for an immediate reversal. “Illinois has led this effort to protect the Great Lakes region, yet the federal government continues to delay progress without explanation,” Pritzker said. “The Great Lakes provide drinking water to more than 40 million people and support a $52 billion economy. This project must move forward.”
The $1.15 billion project, located along the Des Plaines River, is designed to stop invasive carp species from migrating into the Great Lakes system. Experts warn that without a physical barrier, the fish could severely damage a freshwater ecosystem that supports a $20 billion fishing and boating industry.
Asian carp have already spread from the Mississippi River into the Illinois River. State-contracted crews have removed more than 78 million pounds of the fish in ongoing efforts to control their population.
The latest work stoppage is not the first setback. The project was paused in December for another administrative review, and tensions between state and federal officials have continued to escalate.
Earlier this year, Trump said he was committed to protecting the Great Lakes and urged regional cooperation after meeting with Gretchen Whitmer. In response, Pritzker and U.S. Sen. Dick Durbin called on the administration to release funding and move the project forward.
In April, the Army Corps shifted oversight of the project from its Rock Island District to its Detroit District, placing Michigan officials in a more prominent role. Pritzker criticized the move as politically motivated, while federal officials accused Illinois of failing to meet certain financial and logistical commitments—claims the state disputes.
The Illinois Department of Natural Resources said it first learned of the work stoppage from contractors, not federal officials. After repeated outreach attempts, the agency received confirmation of the halt on July 28.
In a letter to the Army Corps, interim IDNR Director Renee Snow called for an immediate meeting to clarify the reasons for the stoppage and address its impact on costs and timelines. She noted that the lack of communication deviates from previously agreed-upon coordination procedures.
Local labor leaders also expressed concern about the delay. Gary G. Perinar III said the project is vital not only for environmental protection but also for local jobs. “This project needs to happen,” Perinar said. “Our members are ready to get to work building and strengthening our communities.”
The future of the project and the timeline for resuming work remains uncertain.
Stay well,
Mike Paone
Executive Vice President
Joliet Region Chamber of Commerce & Industry
mpaone@jolietchamber.com
815.727.5371 main
815.727.5373 direct