Illinois News
Intoxicating hemp remains unregulated in Illinois following legislative inaction
Capitol News Illinois
Article Summary
Industrial hemp production was legalized in the U.S. and in Illinois in 2018. The industry was largely expected to produce items like industrial textiles and non-intoxicating CBD products.
Since then, a legal “gray area” has allowed for hemp to be used in the production of unregulated, intoxicating and synthetic THC products.
Stakeholders including the governor say this undercuts the state’s legal cannabis market and puts consumers at risk.
For the past three years, legislation to more strictly regulate the industry has failed in the General Assembly.
The legislative fight largely pits the state’s legalized cannabis industry against its industrial hemp growers.
This summary was written by the reporters and editors who worked on this story.
RUSHVILLE, Ill. — Justin and Anna Ward of Stoney Branch Farms were anxiously awaiting action on legislation to regulate intoxicating hemp products this spring in Illinois, which would have determined the future of their family-run hemp business in Rushville. But it never came.
Hemp farming has been legal and regulated in Illinois since 2018, when lawmakers passed the Industrial Hemp Act following federal action that legalized hemp production. The legislation anticipated it would again be used to make industrial products, but also for the production of CBD oils that can be extracted from the plant and are marketed as having therapeutic, but not intoxicating, properties.
But hemp has since become the subject of heated debate in Illinois and other states as the plant has been increasingly used to create synthetic products with intoxicating compounds that are not regulated by the federal government. Those products, known as delta-8 THC, are permissible due to what some describe as a “loophole” in the 2018 Farm Bill that legalized hemp production.
Gov. JB Pritzker has been a vocal opponent of intoxicating hemp, saying it undercuts the state’s legal cannabis industry and puts children and teens in harm’s way. He’s advocated – thus far to no avail – for regulating intoxicating hemp products similarly to the state’s legalized cannabis industry.
“This regulatory gray area has created a loophole that put Illinois consumers of all ages, but particularly children, in danger while an underground market flourished—the exact opposite of what Illinois has done by regulating our cannabis industry,” Pritzker said in a December 2024 news release.
But lawmakers failed again to pass legislation regulating intoxicating hemp this year, leaving the industry in limbo until either the state acts or the federal government intervenes first. It marked the third consecutive year that a regulatory bill failed, the latest front in a legislative fight that largely pits the state’s legalized cannabis industry against its industrial hemp growers.
Stoney Branch Farms co-founder Anna Ward looks at a hemp plants in its late growing stages before it gets harvested, after which it will get processed, packaged and sold directly from the farm. (Isabella Schoonover, Medill Illinois News Bureau)
Hemp vs. cannabis: What’s the difference?
Both hemp and cannabis come from the same plant and contain a level of THC that can cause a high if ingested. The most important difference, however, is in the concentration of THC. Compared to cannabis, hemp has a much lower amount of naturally occurring THC.
By federal law, if a plant has a concentration of 0.3% THC or less by dry weight, it is legally considered hemp. If it has any more than 0.3% THC, it is considered cannabis.
Both substances were strictly regulated as “Schedule 1” drugs under the federal Controlled Substances Act of 1970 until the passage of the 2018 Farm Bill, which removed hemp from the legal definition of cannabis, thus creating a fully legal hemp market.
But the farm bill only established a threshold for delta-9 THC, the primary cannabinoid found in cannabis. There is no explicit threshold for hemp-derived delta-8, which is created through additional chemical processing after hemp is harvested.
Unlike cannabis products containing THC, which must meet strict regulatory requirements in Illinois and other states that have legalized recreational and medical cannabis, the intoxicating hemp market is currently unregulated and lacks oversight at both the state and federal level to ensure products are responsibly produced, marketed and sold to consumers.
For example, there is no minimum age required to purchase hemp products, making it relatively easy for young consumers to access intoxicating hemp compared to cannabis.
A recent study from the University of Illinois System Institute of Government and Public Affairs released in May found credible evidence that hemp-derived THC products are intentionally marketed and readily available to teens and young adults through online sales and convenience stores.
At least 32 states have responded by passing legislation to increase regulations, or in California’s case, ban intoxicating hemp altogether.
Should it be regulated or banned?
The Wards have grown hemp on their sixth-generation farm since it was legalized in 2018. They’re in the camp that would like to see the intoxicating hemp industry more strictly regulated but not outright banned.
As president of the Illinois Healthy Alternatives Association, a trade association and lobbying group for hemp farmers, Justin Ward has made regular trips to Springfield to advocate for increased hemp regulation.
According to Ward, new regulations should include state-mandated testing to ensure hemp products are compliant with federal regulations and free of toxic contaminants, sold in child-safe packaging and labeling, and have a minimum age requirement at point-of-sale.
“Everything we grow meets that standard,” Ward said. At Stoney Branch Farms, the Wards sell both non-intoxicating and intoxicating forms of hemp, including delta-8. They said the cultivation, processing, packaging and marketing of their products is all done in-house.
Every crop at Stoney Branch goes through a pre-harvest THC potency test by a federal sampling agent, in addition to a post-processing test by a third party to ensure the final products are free of contaminants. The products are then sold online in child-safe packaging to consumers 21 years old or above.
A team of packagers turn hemp into finished products on Justin and Anna Ward’s farm, most of which is sold over the internet. (Isabella Schoonover, Medill Illinois News Bureau)
A bill to make these standards law in Illinois, House Bill 1, was proposed this year with the support of hemp lobbyists, but continued disagreement among stakeholders over the details of licensing, taxation and the legal potency threshold of delta-8 THC caused the bill to stall without being called for a vote, according to the bill’s sponsor Rep. La Shawn Ford, D-Chicago.
Municipalities are free to ban the sale of hemp-derived products as they see fit, and many have; in Chicago, the City Council has approved bans specific to some wards.
The state’s legalized cannabis industry, which saw its first sales in January 2020, has at times called for an outright ban on delta-8. The industry maintains it’s willing to work toward a solution.
Tiffany Chappell Ingram, executive director of the Cannabis Business Association of Illinois, said in a recent statement that regulations are needed to “rein in” intoxicating hemp. She argues that the hemp industry unfairly undercuts licensed cannabis operators, evades health and safety regulations and generates little revenue for state programs due to its low tax rate.
“We’ve been at this for years at this point, but we’ve got a lot of great allies in the legislature.” Ward said. “This hasn’t been banned yet because they’ve listened to us.”
Opposition from cannabis crowd
The state’s cannabis industry argues intoxicating hemp is not distinct enough from cannabis to have its own license category and far fewer barriers to entry and operation.
For example, while a three-year license for hemp only costs $1,100, including initial licensing fees, a license for cannabis costs $100,000 just to apply for a large adult-use cultivation license, then another $100,000 when the license is granted and each time it’s renewed. The state caps large-scale adult-use cultivation centers to 21 licenses, and has issued fewer than 100 smaller-scale “craft grow” licenses at a cost of $40,000.
When hemp was legalized, many who couldn’t gain entry to the cannabis industry took it as an opportunity to produce a similar product without all the red tape.
“Part of the reason we were drawn to hemp is the lower barriers of entry to get into this in comparison to the cannabis industry,” Ward said.
Hemp is also taxed at a much lower rate than cannabis, allowing the industry to price its products more competitively. Cannabis revenues, by comparison, are hurt by stricter taxation and regulatory compliance, according to the University of Illinois report.
Stoney Branch Farms co-founders Justin and Anna Ward say that while the hemp industry is booming, regulating it the same as cannabis would be a massive blow to their farm. “If we could just get some sensible regulation, I think that it would help a lot of business owners feel confident enough to really put their whole weight behind their business,” Anna Ward said. (Isabella Schoonover, Medill Illinois News Bureau)
Social equity cannabis licenses are available at lower costs to those who have been impacted by the state’s prior criminalization of cannabis, including those previously convicted of cannabis related offenses, but the industry is still far from accessible.
Ford, who spearheads the issue of hemp and cannabis regulation each year, said it’s important to balance promises made to current social equity cannabis license holders with any concessions made for hemp.
Ward said he supports easing regulations on cannabis to make the industry more accessible in Illinois, while also keeping hemp accessible through “sensible” regulations.
“We want regulations to protect consumers and weed out bad actors, but we don’t want to see this thing regulated to death,” Ward said.
Legislature divided on regulation
The state legislature hasn’t been able to settle the question of whether to regulate hemp-derived products containing delta-8 THC as distinct from medicinal and recreational cannabis, or to treat them as virtually the same substance.
The issue caused a rift among House Democrats earlier this year, and despite continued discussions during the spring legislative session, lawmakers have still not come to a consensus.
A proposal backed by Pritzker in the 2024 session, House Bill 4293, to legally define hemp as cannabis, would have made it illegal to sell hemp without a cannabis license. Hemp lobbyists strongly opposed that measure, fearing it would shut them out and give cannabis license holders a monopoly over the cannabinoid market.
Pritzker ultimately blamed House Speaker Chris Welch for killing that bill in January. Despite bipartisan support, Welch said at the time the measure didn’t have enough votes within his Democratic ranks to pass. A spokesperson for Welch promised at the time that he would continue to work toward hemp regulation throughout the legislative session.
A spokesperson for the speaker declined to comment on why hemp regulations still didn’t advance. Both hemp and cannabis lobbies have donated tens of thousands of dollars to Welch’s campaign, Ford’s and others over the last several years in the legislative blitz surrounding the various regulatory bills.
Ward said Ford has been one of the hemp lobby’s biggest allies. Ford conducted meetings all session among lawmakers, the governor’s office and industry stakeholders in an effort to find common ground.
In many convenience stores that sell hemp, the products are behind the counter, even though it’s not illegal to sell hemp products to minors. These packages are also labeled “21+” and “keep out of reach of children.” Critics say the design, modeled after Sour Patch Kids, is intentionally designed to appeal to children. (Simon Carr, Medill Illinois News Bureau)
“We have two competing industries, and we already have existing businesses, and existing businesses are not interested in just losing their operations,” Ford said.
While closed-door conversations surrounding hemp regulations have continued, there has yet to be a public hearing on hemp. Rep. Sonya Harper, D-Chicago, who chairs the House agriculture committee, said the speaker had not responded to her requests for such a hearing.
“I just want to actually make sure that the voices of those most impacted are heard,” Harper said.
Likelihood of future hemp regulation
Though there’s been significant pressure from Pritzker and some advocacy groups to regulate hemp in Illinois, Ford said he’s not inclined to rush the process, arguing it needs broader bipartisan support.
“We had a problem when we regulated cannabis: we sort of rushed it, and we didn’t have stakeholders all at the table,” Ford said. “Some Republicans would say that they were not a part of it.”
A number of Republicans have recently joined negotiations over hemp legislation. But a compromise still seems far off. Rep. C.D. Davidsmeyer, R-Murrayville, who’s been leading that effort, said Republicans are unlikely to support anything but closing the intoxicating hemp loophole.
Davidsmeyer said he opposes the double standard for cannabis license holders versus hemp.
“If you’re going to have a standard, you have everybody in the same industry going by the same rules,” he said.
A row of mature hemp plants grows in one of the greenhouses at Stoney Branch Farms in Rushville, Illinois. (Isabella Schoonover, Medill Illinois News Bureau)
A spokesperson from the governor’s office said his position has not changed since he called for greater regulation.
“I think that it’s agreed that, from the speaker of the House, the governor and the Republicans and myself, and the industry, everyone agrees that we should regulate this,” Ford said. “Over the months, we should be able to get something. It’s a priority.”
Federal changes coming?
A bill that would end this hemp loophole at the federal level passed through the U.S. Senate Appropriations Committee on Thursday, July 10. If that bill becomes law, the cultivation and sale of hemp products containing “quantifiable amounts” of THC would once again be prohibited under federal law, rolling back the previous allowance of 0.3%.
This would deal a devastating blow to the more than $400 million U.S. hemp industry.
One of the most common forms of hemp sold in the U.S. is cannabidiol, or CBD, a non-intoxicating cannabinoid which is marketed as a therapeutic alternative for the treatment of conditions like insomnia, inflammation and seizure disorders.
“That’s a big focus of our business still, is people who are looking for some of the therapeutic benefits that cannabis can provide without a high,” Ward said.
Because CBD almost always still has trace amounts of THC, proposals to ban any “quantifiable amount” of THC could result in the prohibition of CBD products. “I think we really do a disservice to a great number of consumers in Illinois by doing that,” Ward said.
Simon Carr is a student in journalism with Northwestern University’s Medill School of Journalism, Media, Integrated Marketing Communications, and a fellow in its Medill Illinois News Bureau working in partnership with Capitol News Illinois.
Isabella Schoonover is a graduate student in journalism with Northwestern University’s Medill School of Journalism, Media, Integrated Marketing Communications, and a fellow in its Medill Illinois News Bureau working in partnership with Capitol News Illinois.
Capitol News Illinois is a nonprofit, nonpartisan news service that distributes state government coverage to hundreds of news outlets statewide. It is funded primarily by the Illinois Press Foundation and the Robert R. McCormick Foundation.
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Trump’s ‘big bill’ takes center stage in Illinois’ U.S. Senate race
Capitol News Illinois
Article summary
The three Democrats running for Illinois’ open Senate seat voiced concerns about the new domestic policy plan at events around Illinois.
Lt. Gov. Juliana Stratton discussed how SNAP cuts will affect Illinois at an event in Chicago.
Rep. Robin Kelly spoke with voters in Peoria about their concerns with federal spending cuts.
Rep. Raja Krishnamoorthi met with central Illinois independent pharmacist owners to highlight how spending cuts could hurt health care in rural areas.
This summary was written by the reporters and editors who worked on this story.
PEORIA – With major future cuts to social service programs now written into law, Democrats seeking Illinois’ open U.S. Senate seat in 2026 are hitting the campaign trail seeking to position themselves among the law’s most vocal opponents.
“We want Illinoisians throughout our state to understand the ripple effects of the Trump administration’s cruelty and be prepared for what’s to come,” Lt. Gov. Juliana Stratton said during a panel discussion at the Greater Chicago Food Depository Thursday.
The federal policy bill, dubbed the “One Big, Beautiful Bill,” signed by President Donald Trump on July 4 will slash federal spending for health care and other human service programs over the next several years, in many cases leaving states to pick up the tab if they are to continue providing benefits. The bill is expected to cost Illinois more than $700 million for the Supplemental Nutrition Assistance Program, cut Medicaid spending in Illinois by $48 billion over the next 10 years, and potentially force some rural hospitals to close.
As Illinois’ 2026 candidates prepare to begin circulating nominating petitions next month, the three Democrats vying for retiring Sen. Dick Durbin’s Senate seat met with residents around the state to hear about the local impacts of the bill and rally support for their campaigns.
Stratton held an official state event in Chicago to discuss the Pritzker administration’s response to SNAP changes, while U.S. Reps. Robin Kelly and Raja Krishnamoorthi visited downstate communities to discuss the bill.
Kelly gets feedback in Peoria
Kelly, who represents the state’s 2nd Congressional District across parts of Chicago, the south suburbs and rural eastern Illinois, visited with voters in Peoria to hear their concerns about the bill.
The Bradly University graduate said her goal is to make sure Americans are aware of the bill’s effects – even though many of them are slated to begin after the 2026 midterm election.
U.S. Rep. Robin Kelly speaks to voters at an event at the Peoria Public Library on Wednesday, July 9, 2025. (Capitol News Illinois photo by Ben Szalinski)
“In polling and different things that we’ve done, half of the population doesn’t even realize what’s going on,” Kelly said.
Kelly played up her relationship with U.S. House Minority Leader Hakeem Jeffries, saying she has been part of a coalition of House Democrats that have been traveling the country holding town hall meetings about federal spending cuts.
“Every group that we can speak in front of, we need to speak in front of,” Kelly said. “And so that’s one of the reason’s we’re traveling.”
Krishnamoorthi visits rural pharmacy
Krishnamoorthi, who represents the 8th Congressional District in the northwest suburbs, visited a pharmacy in Petersburg about 30 minutes northwest of Springfield.
He echoed concerns other Illinois Democrats have expressed about the “large, lousy law” cutting Medicaid and that it could limit health care services in rural communities.
Read more: Illinois hospitals fear massive cuts under Trump domestic policy law
“When you have that many people who all of a sudden don’t have a way of paying for their health care, then it hurts all those rural health care providers that depend on Medicaid as a form of payment for so many of their patients,” Krishnamoorthi said.
Krishnamoorthi also worried about domino effects from growing deficits as a result of the bill, which the Congressional Budget Office estimates will increase by more than $3 trillion. According to the nonpartisan health research organization KFF, the growing deficit could trigger automatic spending cuts, which could force Medicare cuts even though it was not reduced in the bill.
“We’re also talking about seniors who could be affected by Medicare cuts,” Krishnamoorthi said. “And so at the end of the day, however, everybody’s going to be affected because if, God forbid, one of these hospitals in these areas in the rural parts of Illinois are closed, then everyone, regardless of how their health care is paid for, would be affected negatively.”
SNAP cuts worry candidates
Stratton did not hit the campaign trail with any public events this week, but the Pritzker administration must now decide how it will proceed with new spending requirements signed by the president and the effects of fewer residents receiving social service benefits.
Lt. Gov. Juliana Stratton speaks at a panel discussion on SNAP benefits at the Greater Chicago Food Depository in Chicago on Thursday, July 10, 2025. (Screenshot from Illinois.gov live feed)
Stratton and other top Pritzker administration officials discussed the impact of cuts to the SNAP program during a panel discussion at the Greater Chicago Food Depository as the state seeks more immediate solutions that lawmakers could approve before the 2026 election. The lieutenant governor, who resides on Chicago’s South Side, said reducing eligibility for a food program exacerbates other issues such as crime, economic productivity and learning in schools.
“Hunger is not a problem that stays isolated,” Stratton said. “The repercussions seep out, harming everyone and everything in its path until something changes.”
Kelly told voters in Peoria that SNAP cuts aren’t just a problem for low-income recipients.
“If you cannot buy food, then you’re not shopping at Kroger or wherever you shop,” Kelly said. “And so then Kroger is not buying as much food from the farmers and then they won’t need as many people to work there.”
The Republican field in the Senate race has yet to take shape. Republican Rep. Darin LaHood from the Peoria area held a virtual townhall with 16th Congressional District voters to discuss why he believes the bill will benefit Illinois.
Capitol News Illinois is a nonprofit, nonpartisan news service that distributes state government coverage to hundreds of news outlets statewide. It is funded primarily by the Illinois Press Foundation and the Robert R. McCormick Foundation.
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Feds seek nearly 6 years in prison for Madigan confidant Mike McClain
Capitol News Illinois
Article Summary
Longtime Springfield lobbyist Mike McClain, who spent decades as a close friend and advisor to former Illinois House Speaker Michael Madigan, is scheduled for sentencing later this month as part of separate hearings for the “ComEd Four” beginning next week.
McClain and his co-defendants were convicted in 2023 for their roles in bribing Madigan with jobs and contracts for his political allies at electric utility Commonwealth Edison while the company was pushing for legislation in Springfield.
Federal prosecutors are asking a judge to sentence McClain to 70 months in prison, while the ex-lobbyist is asking for probation.
This summary was written by the reporters and editors who worked on this story.
CHICAGO — Federal prosecutors are recommending nearly six years in prison for ex-Springfield lobbyist Mike McClain, the longtime friend and advisor of former Illinois House Speaker Michael Madigan.
McClain was the marquee defendant in the 2023 “ComEd Four” trial, which ended in across-the-board bribery convictions for former lobbyists and executives of electric utility Commonwealth Edison. The four were found guilty orchestrating a yearslong bribery scheme targeted at Madigan, in which the powerful speaker’s allies got jobs and contracts at ComEd while the utility pushed for favorable legislation in Springfield.
Read more: ‘ComEd Four’ found guilty on all counts in bribery trial tied to ex-Speaker Madigan
For more than two years, McClain and his co-defendants have been awaiting sentencing, delayed by concerns of possible impact from a U.S. Supreme Court ruling, the death of the judge who oversaw the ComEd Four case, and Madigan’s own lengthy trial, in which McClain was also a defendant.
But after a jury in February delivered a split verdict in Madigan’s case, including deadlocking on all six corruption counts McClain was also charged with, sentencing hearings for the ComEd Four were scheduled for July. And on Thursday, prosecutors asked a federal judge to give McClain 70 months — nearly six years — in prison.
Read more: Madigan guilty of bribery as split verdict punctuates ex-speaker’s fall
“McClain’s plan was illegal to its core,” prosecutors wrote in their 48-page sentencing memo Thursday. “In securing benefits for both Madigan and ComEd, McClain corrupted the legislative process and the internal control processes of a large, regulated utility.”
The feds also pointed to “McClain’s repeated overstepping of legal lines,” which they characterized as “stunning” and “egregious” — especially when it came to the $1.3 million ComEd paid out in contracts to a handful of Madigan allies who did little to no work for the company. Prosecutors referred to the no-work contractors as the former speaker’s “cronies” and accused McClain of knowing the contracts were a quid pro quo.
But in a competing filing Thursday, McClain’s attorneys asked for probation for the ex-lobbyist, citing his health and warning that a long sentence could mean he’d “die alone in prison.” His lawyers also reiterated their longtime argument that McClain’s efforts to get jobs and contracts for those in Madigan’s orbit was merely “legal and constitutionally protected lobbying.”
“Simply put, over almost a decade, Mr. McClain passed along and advocated for a handful of job recommendations from Madigan because of Madigan’s position both as an influential member of the General Assembly and, in no small measure, because Madigan was Mr. McClain’s old and close friend,” McClain’s attorneys wrote.
Surrounded by media, former Democratic House Speaker Michael Madigan, the longest-serving legislative leader in U.S. history, departs the Dirksen Federal Courthouse on June 13, 2015, after receiving a 7 ½-year prison sentence on corruption charges. He was also fined $2.5 million. (Capitol News Illinois photo by Andrew Adams)
Madigan last month was sentenced to 90 months in prison and a $2.5 million fine for his guilty convictions, the majority of which stemmed from the same ComEd scheme.
Read more: Ex-Speaker Madigan sentenced to 7 ½ years in prison for bribery, corruption
Starting in 2011, ComEd notched several big legislative wins in Springfield, turning the tide of Madigan’s longtime opposition to bills pushed by utility companies. The General Assembly’s actions were worth millions of dollars to ComEd and its parent company Exelon.
During trial, McClain and his other co-defendants pointed to ComEd’s sophisticated — and expensive — multi-year lobbying strategy as the reason for the company’s luck changing in Springfield. But jurors sided with prosecutors’ theory that the company effectively bribed Madigan, showering the powerful speaker with a “stream of benefits” in the form of jobs and contracts, which greased the wheels of the legislative process.
In their filing, the feds characterized McClain as “politically savvy,” glossing through his decades in Springfield, which included 10 years as a Democratic member of the Illinois House, where he first met Madigan in the early 1970s.
“McClain’s tight connection with Madigan translated into McClain, without hesitation, making demand after demand of ComEd to fulfill Madigan’s directives, for which, in return, McClain expected ComEd would get the legislation it wanted,” prosecutors wrote. “McClain dealt with both Madigan and ComEd with eyes wide open and with full knowledge of the mutually beneficial, and wholly illegal, arrangement he helped to bestow on each of them.”
In addition to the no-work contractors, the alleged scheme also included ComEd’s multi-year contract with a law firm co-owned by Democratic fundraiser and Madigan ally Victor Reyes. Madigan also pushed for the appointment of Juan Ochoa to ComEd’s board, and prosecutors outlined several other jobs and internships at the utility that originated from Madigan.
But McClain’s attorneys insisted McClain simply took “into account” the fact that Madigan was an influential public official and treated his requests with more attention than those “from a less influential official.”
“That, too, is not only legal and rational lobbying but is true of any request for a favor anyone gets from anyone: the more important the relationship, the more effort will be spent to try to accommodate the request,” McClain’s lawyers wrote.
Though U.S. District Judge Manish Shah granted a partial retrial in March after throwing out some bribery counts, prosecutors instead asked to forge ahead with sentencing.
Read more: Judge grants retrial on most bribery counts in ‘ComEd 4’ case nearly 2 years post-verdict
The feds earlier this week also recommended a 70-month sentence for former ComEd CEO Anne Pramaggiore, who testified in her own defense at trial. And last week, prosecutors asked that former ComEd exec John Hooker be sentenced to 56 months in prison. Both instead asked for probation. Sentencing recommendations have not yet been filed for ComEd lobbyist Jay Doherty, whose Aug. 5 hearing will be the last of the ComEd Four.
Capitol News Illinois is a nonprofit, nonpartisan news service that distributes state government coverage to hundreds of news outlets statewide. It is funded primarily by the Illinois Press Foundation and the Robert R. McCormick Foundation.
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Illinois hospitals fear massive cuts under Trump domestic policy law
Capitol News Illinois
Article summary
President Trump’s domestic policy bill contains massive cuts in federal Medicaid spending over the next 10 years.
One analysis predicts $48 billion in spending reductions in Illinois over a decade.
The cuts limit states’ ability to raise money through provider taxes to fund their share of Medicaid costs.
The cuts also limit the way states use Medicaid to direct additional payments to hospitals.
SPRINGFIELD — Hospital officials in Illinois say they will have to make some difficult decisions in the next few years that could involve laying off staff, cutting back services and even closing some facilities entirely.
That’s the expected result of federal funding cuts built into the recently passed domestic policy bill that President Donald Trump signed into law July 4, a law that will cut federal spending on Medicaid by more than $1 trillion over the next 10 years.
A.J. Wilhelmi, CEO of the Illinois Health and Hospital Association said in an interview with Capitol News Illinois that the financial pressures will fall heaviest on hospitals that serve rural areas, where a larger share of the population is covered by Medicaid.
“The hospitals in these communities are already on the brink, based on some of the increases in labor, drug and supply costs coming out of COVID, a continuation of claim denials by payers and relatively flat reimbursement rates,” Wilhelmi said. “So, all of that is creating significant pressures. And when you add these Medicaid cuts to an already challenging situation, we know that there are several hospitals that close because of these changes.”
Enrollment, reimbursement reductions
The new law contains provisions that are expected to reduce the number of people enrolled in Medicaid, particularly in states like Illinois that expanded eligibility for the program under the Affordable Care Act, the 2010 law commonly known as Obamacare.
Those include work requirements for people who enrolled through the expansion as well as requirements that they verify their continued eligibility for the program twice a year instead of annually.
But the law also includes changes in aspects of the program that most people outside the health care industry never see. Those mechanisms – known as provider taxes and directed payments – affect the way states finance their share of the cost of Medicaid and the way they direct additional payments to certain health care providers such as hospitals.
Like many states, Illinois levies special taxes on certain health care providers, including hospitals. The money those taxes generate is used to draw down additional federal matching funds, then is paid back to the providers in the form of directed payments to increase their overall reimbursement rate and to reward them if they meet certain performance or quality standards.
Currently, IHA estimates the hospital tax generates about $2 billion a year in revenue. This past session, lawmakers passed a bill to increase the assessment in order to fund a 54% increase in hospital payments, subject to federal approval of the state’s plan. But state lawmakers passed that bill before Congress passed Trump’s domestic policy bill, dubbed the “One Big Beautiful Bill Act.”
Prior to passage of the new federal law, the tax rate states could levy was effectively capped at 6% of a hospital’s net patient revenue. But under the new law, for states like Illinois that expanded Medicaid under the ACA, that cap will gradually be lowered by half a percentage point each year starting in 2028 until it reaches 3.5% in 2032.
In addition, Wilhelmi said, the new law imposes a cap on the directed payments that expansion states like Illinois can send to hospitals so that the total does not exceed the maximum allowed under Medicare – the federal health insurance program for seniors, which has a lower reimbursement rate than Medicaid.
“And that will result in a significant reduction in Medicaid reimbursements for hospitals,” Wilhelmi said. “It means literally hundreds of millions of dollars in less reimbursement to hospitals.”
$48 billion impact over 10 years
According to the nonpartisan health policy research organization KFF, federal Medicaid spending in Illinois is expected to be reduced by about $48 billion over 10 years under the new legislation. That includes an estimated $6.73 billion in spending cuts in rural parts of the state.
Democratic Gov. JB Pritzker has been harshly critical of the new law, and particularly the Medicaid cuts contained in it.
“Donald Trump isn’t just cutting health care — he’s also closing hospitals in Illinois and across the country with his latest scheme,” Pritzker said in one social media post while the bill was moving through Congress. “Hard-working Illinoisans will spend more time in overcrowded waiting rooms and lose access to life-saving care.”
Wilhelmi, meanwhile, said there is still time before the cuts begin to take effect, and he is urging state officials to begin work immediately to develop strategies to adapt to the changes.
“I think the state will need to work with stakeholders like IHA and our hospitals, other provider groups, to identify creative options to ensure that the Medicaid program can continue to be that lifeline for vulnerable patients and communities,” he said. “And that will include identifying options to fortify those programs and services, as well as identify working with our congressional delegation on ways to mitigate or further delay these changes.”
Capitol News Illinois is a nonprofit, nonpartisan news service that distributes state government coverage to hundreds of news outlets statewide. It is funded primarily by the Illinois Press Foundation and the Robert R. McCormick Foundation.
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Federal food assistance changes threaten benefits for thousands of Illinoisans
Capitol News Illinois
Article summary
The domestic policy law signed by President Donald Trump last week creates new work requirements that could jeopardize food assistance benefits for 360,000 Illinoisans.
Illinois will be required to cover a greater portion of the administrative costs and benefits of SNAP, which could cost several hundred million dollars.
The Congressional Budget Office estimates the changes will substantially reduce costs for the federal government while most states will have to pay significantly more.
This summary was written by the reporters and editors who worked on this story.
Hundreds of thousands of Illinoisans could lose benefits from a federal food assistance program while the state will be required to cover more costs under changes passed in the latest domestic policy plan.
President Donald Trump signed the “One Big, Beautiful Bill Act” into law on July 4, making sweeping changes to social services programs, including Medicaid. Among the programs being revamped is the Supplemental Nutrition Assistance Program, better known as SNAP. The bill institutes new work requirements for many people to remain eligible for benefits and shifts some costs for the program to the states.
Food stamps were first established in the 1930s during the Great Depression. Renamed to SNAP in 2008, the program provides monthly stipends for low-income Americans to purchase select foods at grocery stores. While states implement the program and pay a portion of administrative expenses, the federal government has historically covered the cost of the benefits.
Under the law, work requirements to qualify for SNAP benefits have been expanded to include people up to age 64, along with homeless people, veterans and young adults leaving foster care. Previously, only people age 18-54 had to meet work requirements.
Those populations didn’t previously have to prove they were doing a certain amount of work, but when the changes kick in, they will have to do 80 hours of paid, unpaid or volunteer work each month to qualify for benefits, according to the U.S. Department of Agriculture. The law continues to provide exemptions for people who are physically unable to work, such as for pregnancy.
The changes could leave 360,000 people in Illinois at risk of losing eligibility, according to the state.
“Trump and Republicans would rather children go hungry so their friends can receive tax cuts,” Gov. JB Pritzker said in a statement. “Here in Illinois, we have been working to combat food insecurity for years, and while no state can backfill these costs, the State of Illinois will continue to fight against these harmful impacts and stand up for working families.”
About 1.9 million people were using SNAP in Illinois as of March 2025, according to the USDA.
New costs for the state
Illinois and most other states will have to cover a greater portion of costs for SNAP under the law, including benefits based on the state’s error rate of over- and under-payments on benefits.
Beginning in federal fiscal year 2028, which begins in October 2027, the law requires states with an error rate greater than 10% as of at least FY25 to cover 15% of the cost of benefits. States with lower error rates would cover a smaller portion of the benefits. Illinois recorded an 11% error rate in FY24, according to the USDA.
More than 1.8 million Illinoisians received $4.7 billion of SNAP benefits in FY25, according to the state. If Illinois must pay 15% of the cost of benefits, it could leave the state on the hook for $705 million — or about 1.3% of the current-year budget.
Also beginning in federal fiscal year 2027, which begins in October 2026, states will have to cover 75% of administrative costs for SNAP, rather than 50%. This year’s state budget appropriates $60 million for administrative costs for SNAP — up $20 million from last year.
The changes are part of initiatives by congressional Republicans and the Trump administration to shift more responsibility for assistance programs to states. The nonpartisan Congressional Budget Office estimates changes to SNAP will reduce federal spending by $279 billion over 10 years but increase state spending on SNAP by $121 billion over the same time. The CBO predicts some states could abandon the program or choose to provide a lower level of benefits and not make up for reductions Congress made to the program.
Pritzker and 22 other governors sent a letter to Congress last month saying it’s possible states will have to leave or reduce the SNAP program because of the new cost requirements.
Capitol News Illinois is a nonprofit, nonpartisan news service that distributes state government coverage to hundreds of news outlets statewide. It is funded primarily by the Illinois Press Foundation and the Robert R. McCormick Foundation.
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‘We think about the state in the same way’: Mitchell ready to back up Pritzker
Capitol News Illinois
Article Summary
JB Pritzker’s new running mate Christian Mitchell has held several roles in state government, including lawmaker and deputy governor.
Pritzker said he trusts Mitchell is ready to take over as governor if required and Mitchell said he shares Pritzker’s vision for Illinois.
Mitchell spearheaded some of Pritzker’s top legislative accomplishments during his first term.
Affordability will be a top issue for Pritzker’s campaign, Mitchell said.
Mitchell said he’s willing to consider ethics reform after holding a top leadership position in the Democratic Party of Illinois under former Chair Mike Madigan.
This summary was written by the reporters and editors who worked on this story.
At 38 years old, Christian Mitchell has been inside most corners of state government as a top advisor on political campaigns, state legislator, deputy governor and civic engagement leader at a major university.
All those experiences make him ready to be Gov. JB Pritzker’s running mate next year in the governor’s campaign for a third term, Mitchell said.
“Bringing somebody who will continue to do the work, who with the governor, will go everywhere in the state of Illinois, advocating for the state of Illinois — that’s the thing I think I bring to the ticket. And I think we think about the state the same way,” Mitchell said in an interview with Capitol News Illinois.
Mitchell, a Black Bronzeville resident who currently works as vice president of civic engagement for the University of Chicago, was raised by his single mom and his grandfather and attended the now-shuttered St. Joseph High School in Westchester. He got an undergraduate degree in public policy from the University of Chicago, and while serving in the General Assembly, earned his law degree at Loyola University.
Mitchell represented a South Side of Chicago district in the Illinois House from 2013 until 2019 when Pritzker selected him to be one of four deputy governors, which serve a chief of staff-like role in Pritzker’s administration overseeing specific state agencies and policy areas.
Related: Pritzker selects former Deputy Gov. Christian Mitchell as running mate
He also joined the Illinois Air National Guard in 2023 shortly after leaving the governor’s office.
“It’s certainly not great for my free time, but your time is the most precious thing you have and the ability to give my time in service of my state and my country is very important to me,” Mitchell said.
Why Pritzker picked Mitchell
Pritzker told reporters in the days after he launched his campaign he was looking for a running mate who shared the same affinity for Illinois and was qualified to step in as governor if required. He said he picked Mitchell more than a week before announcing his reelection in late June, but he declined to say how many people he considered.
“He is somebody that I have grown to trust,” Pritzker said at an event in Peoria. “I’ve seen him usher enormous legislation through the legislature. … He’s a guy who knows how to get big things done and I’ve worked with him to get it done and I’m excited for the people of Illinois to get to know him.”
Lieutenant governors in Illinois have virtually no constitutional authority, other than to replace a governor who is impeached, resigns or dies in office. Pritzker’s running mate selection has received more attention as the governor is believed to be considering running for president in 2028 and would resign as governor if victorious.
Mitchell said he’s running to be Pritzker’s right-hand man for four years, but said Pritzker would make a good candidate for president.
“Illinois is the state most representative of the nation and it’s really exciting to see a governor who is considered for president and not for prison,” Mitchell said, referring to the fact that two of Illinois’ last five governors and four of the last 11 have served time in prison.
“I think he would be excellent. Having said that, that’s why I’m so excited he’s running for reelection to continue the progress of the last seven years,” Mitchell added.
Christian Mitchell, Gov. JB Pritzker’s running mate, listens during a conversation at Peach’s Restaurant in Chicago’s Bronzeville neighborhood on July 2. (Capitol News Illinois photo by Andrew Adams)
Though Mitchell hails from Chicago, Pritzker said he believes Mitchell can appropriately address the needs of all areas of the state.
“When you’re a state representative, you don’t just represent the people of your district; you are also voting on things that are good for people all across the state,” Pritzker told reporters last week after greeting Chicagoans at a Bronzeville coffee shop with Mitchell.
Policy goals
As deputy governor, Mitchell led some of Pritzker’s hallmark initiatives through the General Assembly during his first term: a $45 billion infrastructure plan, legalization of cannabis for recreational use by adults, and a climate initiative setting clean energy goals for the state.
Mitchell has a reputation as a hard-nosed negotiator, even among fellow Democrats. Though he has sometimes angered political allies, Mitchell said he’s open to listening to anyone’s ideas.
“For me, it’s build the biggest tent that you possibly can, ask people for their ideas and be willing to listen to them and change your mind when something is different than you thought it was,” Mitchell said. “That’s how Gov. Pritzker has always led, that’s how he has always directed me when I was deputy governor, that’s what we’ll do as partners in state government going forward.”
Christian Mitchell, candidate for lieutenant governor, speaks to former Democratic U.S. Rep. Bobby Rush at Peach’s restaurant in Chicago’s Bronzeville neighborhood on July 2. (Capitol News Illinois photo by Andrew Adams)
Economic affordability is a top concern for Pritzker, who has preached in national media interviews that Democrats must champion policies addressing cost-of-living concerns for Americans. Mitchell said he shares those goals.
“People want to know that you understand what’s going on in their lives, that you’re working on your behalf every single day and when you do things that they can see on their paycheck, in their pocketbook, that is how you inspire confidence and that is something I think we can do as statewide elected officials,” Mitchell said.
He acknowledged price concerns are a macroeconomic issue outside the state’s total control, but Mitchell said state lawmakers can promote policies that lower costs within the state’s control. Reducing the education system’s reliance on property taxes could be a priority in a third Pritzker administration.
“The governor has put … hundreds of millions of new dollars into education every single year to help drive down that burden,” Mitchell said. “We do now need to work with our local governments to make sure those savings are being passed along. That’s another way in which you touch people’s pocketbooks directly.”
Mitchell said he sees some of the same themes surrounding affordability concerns for voters playing out in the 2026 election that helped Democrats win big victories in Illinois in 2018 when he was executive director of the Democratic Party of Illinois. Democrats swept races for statewide offices that year and gained supermajorities in the legislature that have remained strong since then.
Madigan ties and ethics reform
Mike Madigan was chair of the state party while Mitchell worked as executive director. Madigan, the longtime speaker of the Illinois House until early 2021, was sentenced last month to 7 ½ years in federal prison for bribery and corruption.
Read more: Ex-Speaker Madigan sentenced to 7 ½ years in prison for bribery, corruption | Madigan: The rise and fall
Prosecutors accused Madigan of using his positions as House speaker, party chair and as partner in his real estate law firm as a “criminal enterprise” meant to maintain and increase his power while enriching his allies. He was not convicted of the overarching racketeering charge regarding the alleged “enterprise,” but was convicted on lesser bribery counts.
Mitchell took over the administrative reins of the party from Tim Mapes, Madigan’s trusted chief of staff who was accused in early 2018 of sexual harassment and bullying, who is now in prison for perjury.
A woman shakes Christian Mitchell’s hand at a campaign event hosted by Peach’s Restaurant in Chicago’s Bronzeville neighborhood on July 2. (Capitol News Illinois photo by Andrew Adams)
Like many other Democrats, Mitchell said Illinois has moved beyond Madigan’s era and brand of politics.
“I think it’s important to take the message that not just voters but now a jury has sent, which is let’s make Illinois the most ethical state in the nation,” Mitchell said.
Mitchell argued that work started with the Climate and Equitable Jobs Act – the 2021 clean energy policy he led for the governor’s office. In addition to setting decarbonization goals, it also ended the formula rate system that was at the center of bribery allegations against Madigan and the electric utility Commonwealth Edison.
State lawmakers passed other ethics legislation in 2021 months after Madigan left Springfield and nearly a year before he would ever be charged with a crime. But the legislature has largely not dealt with the issue since then, even after Madigan was convicted early this year.
Mitchell said he and Pritzker would be open to any ethics proposals in the future.
Capitol News Illinois is a nonprofit, nonpartisan news service that distributes state government coverage to hundreds of news outlets statewide. It is funded primarily by the Illinois Press Foundation and the Robert R. McCormick Foundation.
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Housing funding cut in Illinois budget as homelessness increases
Capitol News Illinois
Article Summary
Illinois’ fiscal year 2026 budget reduced funding for programs serving homeless people by more than $14 million from the previous year.
JB Pritzker’s “Home Illinois” initiative aimed at reaching “functional zero” homelessness saw a $26.6 million cut.
That program was launched in 2022 and had previously been on a steady upward funding trend.
Advocates worry the reductions and potential federal cuts will exacerbate homelessness in Illinois, which increased 116% in 2024, according to state data.
This summary was written by the reporters and editors who worked on this story.
The number of homeless people in Illinois is rising, but the state’s spending on homeless prevention and other housing programs is headed in the other direction.
Facing a tight budget year with constrained spending and limited natural revenue growth, the $55.1 billion fiscal year 2026 budget that took effect July 1 reduces total funding for housing programs by more than $14 million, including Pritzker’s signature initiative designed to eliminate homelessness in Illinois.
“Last year homelessness increased 116% in the state of Illinois,” Doug Kenshol, co-founder of the Illinois Shelter Alliance, told Capitol News Illinois. “To be in the midst of this crisis and then have the state cut funding was beyond disappointing.”
Discretionary spending rose by less than 1% in the FY26 budget, according to the governor’s office, despite total spending increasing by $2 billion. That minimal spending growth led lawmakers to reduce several programs.
“Is it enough? No, it isn’t … we know that homelessness is an existential crisis, and the state of Illinois takes this seriously,” Sen. Adriane Johnson, D-Buffalo Grove, who serves on a state homeless prevention task force, told Capitol News Illinois. “We have a really bold vision for ending homelessness and we’re going to continue down that path.”
Spending reductions
Pritzker first established a task force by executive order in 2021 that would create a plan for “Home Illinois” to reduce homelessness in the state to “functional zero” — where homelessness is temporary and people without housing can quickly obtain housing resources. The executive order did not set a date for the state to reach functional zero, and funding for the Home Illinois is declining by $26.6 million in FY26.
Pritzker’s administration had previously targeted housing programs for substantial increases in recent years. The FY26 budget appropriated $263.7 million for Home Illinois, down from $290.3 million in FY25. That was a $90 million increase from FY24, when the program received $200.3 million in its first year after Pritzker signed legislation in 2023 codifying the task force and Home Illinois program.
Read more: Pritzker signs $55.1B state budget reliant on $700 million of new taxes
Among the decreased spending in Home Illinois is a $25 million reduction to the Court-Based Rental Assistance Program that provides financial aid to people facing evictions. Other programs saw steady or increased funding, including shelters, which rose to fund Chicago’s One System Initiative that integrates migrants into the city’s typical shelter system.
Spending on housing programs is also down overall, according to the advocacy group Housing Action Illinois. While some housing programs saw increases that offset reductions to Home Illinois, total spending on housing programs is down by $14.6 million in the FY26 budget, to $354 million. Pritzker’s proposed budget had called for a $7.6 million decrease.
“FY26 is largely a maintenance year for the state budget,” an Illinois Department of Human Services spokesperson said in a statement. “We remain as committed as ever to advancing strategies that prevent and end homelessness across Illinois.”
Johnson said the spending reduction is “temporary” and the state is still working toward long-term goals that would require more funding.
“The state is trying to do the best it can with limited resources,” Housing Action Illinois Policy Director Bob Palmer said in an interview.
Some of the avenues lawmakers used to fund programs also divert funding away from one area in favor of another, Palmer said. For example, the Affordable Housing Trust Fund is supposed to provide funding for new permanent rental housing, but money in the fund is also being used to increase funding for emergency or transitional housing.
“We were in a way glad to see that increase but also feeling conflicted because it’s taking money from another important housing resource,” Palmer said. “We had been advocating for that increase to come from general revenue funds.”
Read more: Illinois Shelter Alliance calls for $100M state funding boost to fight homelessness
Funding for the emergency and transitional housing program increased by $7 million, a small win for advocates, but nowhere near the $40 million increase sought by the Illinois Shelter Alliance. The group wanted lawmakers to increase funding by $100 million overall for housing programs.
Palmer also worried proposed federal cuts to rental assistance programs will put additional strain on the state’s budget.
Homelessness continues to grow
The spending reductions come as homelessness in Illinois continues to rise despite the new program.
The latest data on homelessness in Illinois from an October report by a Department of Human Services task force shows the state had 25,787 unhoused people on the night of the annual “point in time” count in January 2024 — a 116% increase from 2023.
The increase is largely driven by migrants who have been sent to Illinois by other states such as Texas. Of those without housing in January 2024, 13,891 were new arrivals. However, non-migrant homelessness is still on the rise, increasing 22% in 2024.
Homelessness is also increasing throughout the state. It’s up 207% since 2020 in Chicago, while DuPage and St. Clair counties were the only places in Illinois to see a decline over that time.
“You can argue that we can always do better, but Illinois is on the right path,” Johnson said.
Despite homelessness increasing since Home Illinois was established, Kenshol said the program is making a difference.
“They’ve created some great programs and they’ve gotten funds distributed and a lot of housing and a lot of shelter has been created, but we have to sustain that effort and we need to keep making incremental increases because we’re not there yet,” he said.
Data backs that up, according to IDHS. The Court-Based Rental Assistance Program, which received a substantial cut this year, has helped 7,500 households. And more than 18,000 people were served by Home Illinois in the first half of FY25 — 10,000 more than IDHS’ prior homelessness prevention program helped in FY22.
The problem, according to advocates and IDHS, is rapidly growing housing costs that make finding permanent housing and affording rent more unreachable for more people. A report last month from the Illinois Economic Policy Institute found Illinois needs 142,000 more housing units to meet the current demand for homes.
Finding more resources
Data in the task force’s annual report that provides a road map for Home Illinois shows service providers still need substantial resources to make a dent in homelessness. The state has more than 23,000 beds and housing units for homeless people, but needs about 27,000 more.
The task force, which includes advocates, lawmakers and top leaders in state agencies, says the problem will continue to grow if these resources aren’t addressed.
“The longer it takes to meet these targets, the more resources will be needed to reach functional zero as homelessness is a dynamic systems problem, or, in other words, annual unmet need for shelter and housing can be expected to increase each year that the need is unmet,” the report said.
Palmer agreed.
“If we’re taking the plan to prevent and end homelessness in Illinois seriously, we need to be providing the increased resources to eliminate that shortage … otherwise we’re just managing homelessness at its current level,” he said.
Palmer said lawmakers should be increasing funding for housing no matter what the state’s budget situation is because housing insecurity can be a root cause for other issues that cost the state more money, such as health problems.
Increasing funding for shelters alone also isn’t enough, said Kenshol, the Shelter Aliance co-founder. A lack of funding for affordable permanent housing leaves people stuck in the shelter system, which means growing rental assistance programs to help prevent people from being forced into shelters should be a budget priority, he said.
In a $55.1 billion budget, Kenshol argued the state should be able to find the money to increase funding each year for housing programs.
“As a society, as voters, as elected officials, we make different choices. We turn our backs on the people who are desperate and at risk of perishing and instead we invest in other things,” Kenshol said. “My values suggest that we should put caring for the least of these first.”
Capitol News Illinois is a nonprofit, nonpartisan news service that distributes state government coverage to hundreds of news outlets statewide. It is funded primarily by the Illinois Press Foundation and the Robert R. McCormick Foundation.
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Pritzker warns 330,000 Illinoisans could lose Medicaid under Trump’s budget plan
Capitol News Illinois
Article Summary
The U.S. House gave final passage Thursday to a bill that will cut federal Medicaid spending in Illinois by an estimated 20%, or $48 billion, over 10 years.
Medicaid pays for about 40% of all childbirths in Illinois as well as 69% of all nursing home care, according to an independent analysis.
State officials estimate 330,000 Illinoisans could lose Medicaid coverage if President Donald Trump signs the bill into law.
The Illinois Department of Public Health said nine rural hospitals in Illinois would face closure or severe service reductions due to the cuts.
This summary was written by the reporters and editors who worked on this story.
SPRINGFIELD — The U.S. House gave final passage Thursday to a budget bill that will cut federal Medicaid spending by an estimated $1 trillion over 10 years.
All three Republican members of the Illinois congressional delegation voted in favor of the bill, despite a last-minute plea from Democratic Gov. JB Pritzker who warned the bill will result more than 330,000 Illinoisans losing Medicaid coverage and have a devastating effect on some rural hospitals.
“As those who are entrusted with protecting the health of all your constituents, I urge you to oppose these harmful Medicaid provisions and work to protect healthcare access for rural Illinois families, workers, and veterans,” Pritzker wrote in the letter addressed to GOP Reps. Mike Bost, Darin LaHood and Mary Miller.
The cuts would translate to about $48 billion in Illinois over that period, or about 20% of what the state would otherwise receive, according to an analysis by KFF, a nonpartisan health policy research organization.
That would be one of the largest percentage reductions in any state in the nation, according to KFF, a nonpartisan health policy research organization formerly known as the Kaiser Family Foundation. Louisiana and Virginia would each see cuts of about 21%, KFF said.
The state-level analysis is based largely on Congressional Budget Office estimates showing the bill would reduce federal Medicaid spending by $1 trillion nationwide over the next decade.
The KFF analysis does not include estimates of the number of people who would lose Medicaid coverage under the bill, noting how that will depend on how individual states respond to the policy changes contained in the bill. But overall, it estimates the number of uninsured Americans will grow by 11.8 million.
The bill, which includes many of President Donald Trump’s domestic policy priorities – including tax cuts and increased spending on border security – passed the Senate on Tuesday by a vote of 51-50, with Vice President J.D. Vance casting the tie-breaking vote. Both senators from Illinois, Democrats Dick Durbin and Tammy Duckworth, voted no.
The final vote in the House was 218-214.
“The One Big, Beautiful Bill is a once-in-a-generation victory for the American people,” Miller said in a statement after the House vote. “It delivers on President Trump’s America First agenda with bold, decisive, and immediate action. This is the most pro-worker, pro-family, pro-America legislation I have voted for during my time in Congress, and I was proud to help get it across the finish line for the hardworking Americans across my district.”
Medicaid and the health care marketplace
Medicaid, which is jointly funded by states and the federal government, provides health coverage for lower-income individuals and families. It was established in 1965 alongside Medicare, the federally funded health coverage program for people over 65.
Today, according to the Illinois Department of Healthcare and Family Services, the program covers about 3.4 million people in Illinois, or a fourth of the state’s population. At a total cost of $33.7 billion a year, it is one of the largest single categories of expenditures in the state’s budget. It pays for about 40% of all childbirths in the state, according to KFF, as well as 69% of all nursing home care.
But questions about its future loomed over the Illinois General Assembly during the just-completed legislative session as both Congress and the General Assembly were crafting their respective budgets for their upcoming fiscal years.
“This was a difficult year because of the unprecedented changes and cuts that are looming on the horizon in Washington,” state Rep. Anna Moeller, D-Elgin, said on the floor of the Illinois House during debate over a Medicaid bill on the final day of the session.
Read more: Amid uncertainty in Washington, Illinois lawmakers pass slimmed-down Medicaid package
Speaking with reporters at an unrelated event Tuesday, Pritzker predicted “hundreds of thousands” of people in Illinois will lose Medicaid coverage if the Senate bill is signed into law.
“This is shameful, if you ask me, and it’s going to be very hard to recover,” Pritzker said. “The state of Illinois can’t cover the cost – no state in the country can cover the cost of reinstating that health insurance that is today paid for mostly by the federal government, partly by state government.”
Policy changes under the bill
According to KFF, most of the reductions in Medicaid spending would result from just a few policy changes contained in the bill
Those include imposing a work requirement on adults enrolled in Medicaid through the Affordable Care Act, also known as “Obamacare.” That law expanded eligibility for Medicaid to working-age adults with incomes up to 138% of the federal poverty level. About 772,000 people in Illinois are enrolled under that program.
The bill also calls for requiring people enrolled through the ACA expansion to verify their continued eligibility for Medicaid twice a year instead of annually. That is expected to filter out enrollees whose incomes rise above the eligibility limit as well as those who simply fail to complete the verification process.
Another provision would limit the ability of states to finance their share of the cost of Medicaid by levying taxes on health care providers. Illinois imposes such taxes on hospitals, nursing facilities and managed care organizations that administer the program. Revenue from those taxes is used to draw down federal matching funds that are then used to fund higher reimbursement rates to health care providers.
The final version of the bill does not, however, include a provision penalizing states like Illinois that also provide state-funded health care to noncitizens who do not have lawful status to be in the United States. That provision, which was included in the earlier House version, was not included in the Senate bill, according to KFF.
Capitol News Illinois is a nonprofit, nonpartisan news service that distributes state government coverage to hundreds of news outlets statewide. It is funded primarily by the Illinois Press Foundation and the Robert R. McCormick Foundation.
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State ends fiscal year with record revenue
Capitol News Illinois
Article Summary:
Illinois closed fiscal year 2025 with record $54 billion in revenue.
While that marked a surplus from the enacted budget, the extra revenue was anticipated when lawmakers approved the current-year budget in May.
It doesn’t give lawmakers any extra breathing room for an expected volatile fiscal year 2026.
This summary was written by the reporters and editors who worked on this story.
Despite uncertainty over the economy and federal funding during the second half of fiscal year 2025, the year closed on June 30 with the state setting a new record for annual revenue.
Numbers compiled by the independent Commission on Government Forecasting and Accountability show FY25 concluded with $54 billion in revenue, the most the state has ever received in a fiscal year. The state also brought in $717 million more in revenue than lawmakers originally budgeted for when they passed a $53.3 billion budget in May 2024.
All told, the final revenue numbers track closely with projections made in May by both COGFA and the Governor’s Office of Management and Budget that formed the basis of the FY26 budget. In other words, June revenues produced no surprises, and lawmakers aren’t sitting on any substantial surplus as the new fiscal year begins.
The record revenues also don’t alleviate any uncertainty for the current or future fiscal years as Congress considers drastic reductions to the social safety net and aid to states.
Causes of revenue growth
Strong personal income tax growth drove the revenue increase in FY25, largely thanks to a “true up” conducted by the Department of Revenue that reallocated business related income tax revenue into the personal income tax category. Personal income tax revenue was 10% higher than in FY24, but corporate income taxes declined by 9.5%.
Some other revenue sources also saw minimal growth. Sales tax revenue grew by less than 1%, though COGFA noted it increased by nearly 3% in the second half of FY25 after a weak start last summer as gas prices dropped and people cut back on large purchases amid growing economic uncertainty.
Federal income was also down 4.6% in FY25, even when excluding one-time pandemic relief funds the state received in FY24. But in a bright spot for the state, COGFA found that state revenue sources grew more than anticipated to offset the $178 million decline in federal revenue.
Despite solid revenue growth this year, questions remain about how well it will perform in FY26.
“Whether this record will be surpassed in FY 2026 remains to be seen, though the FY 2026 enacted budget assumes revenues of $55.297 billion – nearly $1.3 billion above the FY 2025 final total,” COGFA Revenue Manger Eric Noggle wrote.
Bills paid and money left over
The state also ended the fiscal year with $1.9 billion of cash in the General Revenue Fund after all bills were paid, according to the Comptroller Susana Mendoza’s office.
“We work hard each year to pay bills on time, build up the state’s emergency reserves and stress fiscal discipline, even in these uncertain times,” Mendoza said in a statement. “My office will strive for continued improvement in state finances and credit ratings in the new budget year.”
Mendoza’s office also put $256 million into the “rainy day” fund, growing it to a balance of $2.5 billion. The fund is expected to grow at a slower rate in FY26, however, as lawmakers suspended a monthly transfer that will free up $45 million.
With an extra cash balance to start the new fiscal year, Mendoza said she plans to pre-pay monthly pension payments for FY26. Lawmakers gave the comptroller authority last year to make pension payments earlier in the year rather than on a monthly basis when extra money is available.
“This will enable the systems to plan accordingly and keep additional dollars in their investment portfolios into the new budget year,” Mendoza said.
An uncertain future
With good new concluding FY25, attention now turns to FY26, which began Tuesday, and the vast uncertainty the state faces from budget talks in Congress and the economic fallout of decisions by the Trump administration.
Gov. JB Pritzker signed a $55.1 billion spending plan in mid-June that relies on $55.3 billion in revenue. It’s the largest budget in state history despite minimal discretionary spending growth, and it relies on $1.2 billion of tax increases or one-time revenues.
Read more: Pritzker signs $55.1B state budget reliant on $700M of new taxes
But state lawmakers have left the door open to the possibility that changes Congress makes to federal funding that requires states to cover greater portions of government programs and ceases funding in certain areas will require lawmakers to change the budget.
“The ability of the state to try to step in and try to mitigate the damage is somewhat limited, although we have the ability to do certain things and may have to in special session or we may have to in veto session,” Pritzker told reporters in Peoria on Tuesday. “It’s a little hard to tell yet. Some of the provisions of this terrible bill in Washington, D.C. don’t go into effect until next year and so we’ll have to evaluate what changes to make in order to deal with it.”
Work requirements for health care and food assistance programs, cuts to Medicaid reimbursements and the elimination of clean energy tax credits could all require the state to take on more costs.
Capitol News Illinois is a nonprofit, nonpartisan news service that distributes state government coverage to hundreds of news outlets statewide. It is funded primarily by the Illinois Press Foundation and the Robert R. McCormick Foundation.
The post State ends fiscal year with record revenue appeared first on Capitol News Illinois.
Pritzker signs health care legislation
Capitol News Illinois
Gov. JB Pritzker signed a pair of health care-related bills Tuesday that he said would put more controls on the pricing of pharmaceutical drugs sold through insurance plans while expanding insurance coverage for certain kinds of hospital costs.
“For too long our health care system has been infected by profit-seeking middlemen and predatory actors looking to make an extra dime at the expense of Illinois patients,” Pritzker said at a bill signing ceremony in Peoria. “Seniors have been forced to pay through the nose for life-saving medications. Families have had to delay or decline medically necessary treatments because they can’t afford it anymore. And family businesses like independent pharmacies have had to shut their doors.”
House Bill 1697, known as the Prescription Drug Affordability Act, will impose new restrictions on practices of pharmacy benefit managers, or PBMs, a powerful but little-understood segment of the pharmaceutical industry.
PBMs are companies that act as a kind of middleman between health insurance plans and pharmaceutical companies by negotiating drug prices and designing drug formularies that are intended to steer patients toward lower-cost medications.
But they have come under intense criticism in recent years for steering patients toward their own affiliated retail chain pharmacies, often to the detriment of smaller independent pharmacies, and for operating pricing systems that are designed to maximize profits for the PBMs rather than producing savings for patients.
Under the legislation, PBMs will be prohibited from steering consumers toward large pharmacies in which they have a financial interest. They will also be prohibited from engaging in “spread pricing” – the practice of charging health plans a higher price for a drug than the PBM pays a pharmacy for dispensing the drug.
The bill also establishes a grant program that will distribute $25 million a year in financial support for independent pharmacies, funded through a tax levied on PBMs operating in Illinois.
David Bagot, an independent pharmacist from Petersburg who is also president of the Illinois Pharmacists Association, called the bill “landmark legislation” that he predicted would be studied and replicated in other states.
“This bill represents the most comprehensive reform of pharmacy benefit managers we have seen in Illinois,” he said. “For far too long, these companies have used our nation’s drug supply chain to benefit shareholders and executives while driving up costs for people who rely on medications and driving pharmacies out of business.”
But the Pharmaceutical Care Management Association, the lobbying organization that represents PBMs, called the bill “misguided legislation” and predicted it would have little or no impact on the prices consumers pay for medications.
“Unfortunately, the legislation does nothing to address the fact that Big Pharma sets the price of the prescription drugs – and the price is the problem when it comes to some Illinoisans facing difficulty affording their prescription drugs,” the group said in a statement. “Lawmakers have passed 20 bills regulating and restricting PBMs since 2016, none of which have led to lower drug prices.”
Insurance coverage expansion
Pritzker also signed House Bill 3019, known as the Healthcare Protection Expansion Act.
Among other things, it prohibits state-regulated health plans from requiring prior authorization for outpatient mental health services. Last year, lawmakers imposed a similar prohibition for inpatient and emergency mental health services.
It also requires insurance plans to cover a patient’s travel-related expenses whenever they have to travel long distances to receive in-network care, a problem often faced by patients who live in rural areas of the state.
“Building on protections that make mental health care accessible for all Illinois residents, this law gives people more opportunities and flexibility to receive necessary services,” state Sen. Laura Fine, D-Glenview, a lead sponsor of the bill, said in a statement.
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