Posts Tagged ‘Springfield’
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.
The post Illinois hospitals fear massive cuts under Trump domestic policy law appeared first on Capitol News Illinois.
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.
The post Federal food assistance changes threaten benefits for thousands of Illinoisans appeared first on Capitol News Illinois.
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.
The post Housing funding cut in Illinois budget as homelessness increases appeared first on Capitol News Illinois.
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.
The post Pritzker warns 330,000 Illinoisans could lose Medicaid under Trump’s budget plan appeared first on Capitol News Illinois.
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 selects former Deputy Gov. Christian Mitchell as running mate
Capitol News Illinois
Gov. JB Pritzker announced Tuesday that former Deputy Gov. Christian Mitchell will be his running mate for the 2026 campaign.
Pritzker’s selection, made just days after announcing a third campaign for governor, comes from a close circle of trust in Pritzker’s administration. Mitchell previously served in the governor’s office as one of four deputy governors overseeing key projects in Pritzker’s first term.
“Christian Mitchell is a proven leader with deep experience, steady judgment, and an unshakable commitment to the working families of Illinois,” Pritzker said in a statement. “Whether it’s transforming our clean energy future, rebuilding our infrastructure, or keeping our communities safe, Christian has been a force behind so much of our progress. I couldn’t ask for a better partner to continue delivering results for the people of Illinois.”
Mitchell, 38, will replace Lt. Gov. Juliana Stratton on the ticket as she seeks the Democratic nomination for U.S. Senate.
Mitchell comes in with hefty experience in state government and public policy. A resident of Chicago’s Hyde Park neighborhood, Mitchell served three terms in the Illinois House beginning in 2013 and was executive director of the Democratic Party of Illinois in 2018 before joining the governor’s office in 2019.
Lieutenant governor role
Mitchell left Pritzker’s administration in early 2023 to become vice president for civic engagement at the University of Chicago where he oversees government relations. Mitchell was appointed by Pritzker last year to an unpaid seat on the Metropolitan Pier and Exposition Authority board, which oversees Navy Pier and McCormick Place. He is also a first lieutenant in the Illinois Air National Guard.
“The governor has led with courage and compassion, and together we’ve built a foundation that’s moving Illinois forward,” Mitchell said in a statement. “I’m ready to build on that progress — lowering costs, expanding opportunity, and making sure every community has the resources and opportunities they deserve. This is about delivering real results for the people of Illinois, and I’m excited to get to work.”
Read more: ‘I have work to do,’ Pritzker says in launching third-term reelection bid
Though the lieutenant governor has few constitutional responsibilities in Illinois, Pritzker has leveraged the position to task Stratton with leading key legislative initiatives and overseeing the implementation of some of his administration’s top priorities at state agencies.
If Pritzker is elected to another term, the role will hold greater importance as Pritzker considers running for president in 2028. Pritzker’s election to the presidency would require Mitchell to serve the final two years of his term.
Read more: National speculation ‘helps get more for the people of Illinois,’ Pritzker says
While keeping Mitchell’s selection under wraps, Pritzker told reporters in recent days he was looking for a running mate who was ready to immediately step into the governorship if required.
“The number one qualification is, ‘can you do the job of being governor because if you’re lieutenant governor, that may come to you,’” Pritzker said Monday.
“The second thing I think about is person who I might choose for lieutenant governor somebody who has a heart for all the people of Illinois, not just some or some specific segment of the population because we have a big, diverse state,” he said.
Deputy governor role
Deputy governors in Pritzker’s administration have a chief of staff-like role, overseeing specific policy areas and state agencies. Mitchell was in charge of environmental policy, infrastructure and public safety.
In 2020 and 2021, Mitchell oversaw the negotiations of Pritzker’s marquee climate policy — the Climate and Equitable Jobs Act. It massively reformed the utility and energy industry and requires all fossil fuel power plants to close by 2045.
Mitchell was responsible for representing the governor in negotiations around the bill and was the face of the Pritzker administration as it went through the legislature.
That law, passed in the wake of a bribery scandal with Chicago’s electric utility that forced former House Speaker Michael Madigan to resign, cemented Pritzker’s reputation as a progressive on climate issues.
In the years since, energy experts and some lawmakers involved in passing the law have raised concerns that the state is at risk of missing the clean energy targets that Mitchell helped codify.
Mitchell also oversaw the implementation of the 2019 Rebuild Illinois capital plan – a $45 billion construction project to rebuild roads, bridges and other infrastructure across the state.
Recreational cannabis regulation was also Mitchell’s responsibility. Pritzker signed legislation in his first year legalizing cannabis for recreational use and setting up a series of regulations for dispensaries and new social equity requirements.
Other experience
As a state lawmaker, Mitchell was chair of the House Economic Opportunity Committee.
Mitchell also brings heavy political experience to the ticket. Democrats swept races for statewide offices in 2018 and won supermajorities in the Statehouse with Mitchell serving in a top leadership role under former party Chair Mike Madigan. He took over for Tim Mapes, Madigan’s former chief of staff who was accused of sexual harassment and is now serving time in prison for a perjury conviction.
He has also worked as an advisor on several political campaigns in Illinois, including leading Midwest polling for former President Barack Obama’s 2012 campaign.
Andrew Adams contributed.
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 Pritzker selects former Deputy Gov. Christian Mitchell as running mate appeared first on Capitol News Illinois.
Illinois to roll out direct admissions program for most state universities
Capitol News Illinois
Editor’s note: This story was updated to refer to the correct building on the campus of Northeastern Illinois University in the featured photo caption.
CHICAGO — Illinois students won’t need to fill out applications for most state universities to be admitted — if they have high enough grades.
With his signature, Gov. JB Pritzker on Monday approved a bill creating the direct admissions program. Along with it, he approved bills that implement new state standards for programs offering college credits to high school students, and new requirements for financial aid application assistance.
“These bills streamline the application process for college-bound seniors in Illinois, enhance support for applicants, and open up new horizons for prospective students,” Pritzker said in a statement. “Enacting these laws is what all government work should be about — making life easier for our people.”
Pritzker had said college admissions and higher education accessibility would be a priority of his during this year’s legislative season, which ended May 31. But one of his signature initiatives — allowing community colleges to offer four-year degrees — failed earlier this year.
Direct college admissions
Illinois will implement a direct admissions program so that students hoping to go to a state school will be automatically admitted — if they have a high enough grade point average.
“For eligible seniors and community college transfer students, you will receive offers from the schools that you are admitted to without raising a finger. That’s huge,” Sen. Christopher Belt, D-Swansea, said. “It takes away the anxiety, it takes away the angst of that whole process.”
The bill outlining the direct admissions program, House Bill 3522, passed unanimously in the Senate and with broad bipartisan support in the House in late May.
Read more: House approves new abortion protection, plan to ease college admissions | Senate Democrats champion program to streamline Illinois college applications
The program will begin in the 2027-28 school year, with nine of the state’s 11 public universities participating:
University of Illinois Springfield
Southern Illinois University
Chicago State University
Eastern Illinois University
Governors State University
Illinois State University
Northeastern Illinois University
Northern Illinois University
Western Illinois University
High school students and community college students hoping to transfer to a state school must opt-in to the program to receive offers. Community colleges already admit all students interested in attending but will still participate in the direct admissions program.
The University of Illinois Urbana-Champaign and University of Illinois Chicago will not participate in the direct admission program. The state will, however, provide information about traditional applications to qualifying students through an “access and outreach campaign.”
The criteria for the direct admissions program and outreach campaign will be set by individual schools.
“This new, statewide direct admissions program will make a college degree more accessible for students and will motivate them to continue in their life-changing college journey by ensuring them a spot at their community college or at one of the state’s public universities,” Illinois Board of Higher Education Executive Director Ginger Ostro said in a Monday statement.
Financial aid application assistance
Two more bills signed by Pritzker on Monday, House Bills 3096 and 3097, aim to make it easier for students to navigate the financial aid process.
HB 3096 requires high schools in Illinois to designate at least one staff member as a point-of-contact for information about the Free Application for Federal Student Aid, or FAFSA. HB 3097 requires high schools to offer students time during the school day to fill out FAFSA forms and to receive assistance in doing so.
The new requirements go into effect in the 2025-26 school year.
Information collected through FAFSA is used to determine eligibility for federal loans. Many schools use FAFSA for their own aid programs, and the state offers need-based grants based on information submitted through FAFSA.
“As a father of college students, I just currently went through this fun exercise with my daughter filling out a FAFSA form,” Sen. Javier Cervantes, D-Chicago, said. “I’m being a little sarcastic calling it fun because we had deadlines, we had to make sure we had our documentation together and it wasn’t easy.”
From the 2010 to 2020 school years, an average of 86% of first-time students at four-year schools and 78% of first-time students at two-year schools received federal financial aid, according to data from the U.S. Department of Education.
The Illinois Community College Board offices sits blocks away from the state Capitol. Under a new law, the ICCB and other state agencies are tasked with improving dual credit programs in the state. (Capitol News Illinois photo by Andrew Adams)
Dual credit program
House Bill 2967, another bill approved by Pritzker on Monday, outlines new requirements for high schools and community colleges offering “dual credit” programs, through which students earn high school and college credit for completing a single course.
It requires teachers teaching dual credit classes to have a master’s degree in the subject they’re teaching or a master’s degree and some graduate coursework in the subject. It also requires high schools and community colleges to designate individuals responsible for negotiating what individual dual credit agreements look like.
“HB 2967 reinforces the vital role that strong, robust partnerships between community colleges and high schools play in delivering high quality dual credit programs,” Illinois Community College Board Executive Director Brian Durham said in a statement. “These programs help students get a head start on their college education and a path towards career success.”
The bill also requires schools to consider in-state colleges and universities when setting up dual credit programs over out-of-state institutions.
The bill also creates a committee made up of education officials, representatives from two different statewide teachers’ unions and others to work on improving dual credit programs’ accessibility and quality, as updating a template used by school districts to develop dual credit agreements with community colleges.
Four-year degrees at community college
One key proposal didn’t make the cut this spring — a measure allowing community colleges to offer bachelor’s degrees. Despite being backed by Pritzker in his State of the State address earlier this year, it faced pushback in the General Assembly, which did not pass a bill implementing the policy.
Read more: Pritzker’s community college initiative stalls in House committee
That proposal drew concerns from some lawmakers who worried it could undercut programs to attract local students to state universities. In particular, some lawmakers worried that it could hurt schools like Northeastern Illinois University and Chicago State University, which serve largely minority student populations.
But Pritzker on Monday said he would continue working on a proposal to allow more schools to offer bachelor’s degrees in “very specific, niche areas” like nursing and advanced manufacturing.
“You sometimes have to work two, four, six years, maybe longer to get something done,” Pritzker said.
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 Illinois to roll out direct admissions program for most state universities appeared first on Capitol News Illinois.
National speculation helps ‘get more for the people of Illinois,’ Pritzker says
Capitol News Illinois
SPRINGFIELD — Gov. JB Pritzker began his third campaign for governor on Thursday, but much of the buzz around his 2026 campaign announcement focused on 2028.
Pritzker made four stops around the state to launch his campaign, fielding questions about any future interest in the presidency and what is driving him to run for what would be a historic third term. In his final stop in Springfield on Thursday evening, he was toasting personally branded “JBeers” – his own craft beer product he unveiled at least year’s Democratic National Convention – with a group of about 100 people at a small event venue just outside the Capitol and talking about his motivations.
“Every day I’m going to wake up going forward thinking about what I am going to do that’s going to help the people of Illinois,” Pritzker told reporters in Springfield when asked how many years of a third term he would serve. “So that’s the reason I’m running for reelection, it’s why I announced today, it’s what I’m going to do every day going forward no matter what decision I make.”
The 60-year-old Democrat’s national profile has grown significantly over the last year. He was a finalist to be former Vice President Kamala Harris’ running mate last July, and weeks later, introduced himself to the country on the stage of the Democratic National Convention in Chicago. In the months since President Donald Trump took office, Pritzker has emerged as one of his most vocal critics.
At news conferences throughout the state, Pritzker did not directly commit to serving a full four-year term if he is reelected and sidestepped questions about his rumored White House ambitions.
Read more: Pritzker calls for mass mobilization as he grows his national profile
But while staying tight-lipped about what he thinks about his prospects in the 2028 presidential election, he said any decision he makes about his future would be Illinois-centric.
Speculation shows Pritzker ‘capable and competent’
In the meantime, Pritzker said he believed his inclusion in the national conversation is good for Illinois.
“When I ran for governor in the first place in 2017 and 2018, never, never could I have imagined that anybody would talk about me as the potential vice-presidential nominee or as a candidate for president of the United States,” Pritzker said.
While Republicans have frequently criticized the governor for his tendencies to criticize Trump rather than work with him to Illinois’ benefit, the governor spun his rising national profile as a positive.
Gov. JB Pritzker takes a picture with Mike Lopez, mayor of nearby Jerome, after announcing his reelection campaign in Springfield on Thursday, June 26. (Capitol News Illinois photo by Jade Aubrey)
“Having the state of Illinois’ leaders viewed as capable and competent and potentially able to run the entire country and being talked about in that way, allows us, I think, to get more for the people of Illinois because there’s an understanding that, you know, maybe in Illinois we’re doing the right things,” he said. “Maybe in Illinois we have leaders that can competently execute on what states really need.”
Pritzker said his experience last summer being vetted for the vice presidency has not played any role in the decisions he has made about his political career.
Should Pritzker decide to run for president, an announcement would likely come at some point in 2027 during what would be the first year of his third term if he’s reelected.
Pritzker’s goal: ‘Protect’ Illinois and his legacy
Pritzker said at his announcement Thursday that his goal in 2026 is to preserve his legacy and “protect” the story of Illinois that’s been written under his leadership. Pritzker didn’t outline a bold vision for his third term but rather pledged to build off what he has already accomplished.
Read more: ‘I have work to do,’ Pritzker says in launching third-term reelection bid
He said his third term would focus on grappling with artificial intelligence, addressing the rising cost of living, continued spending on infrastructure and growing the state’s economy.
Pritzker reflected on his decision to seek reelection despite growing challenges facing the state.
“I don’t shy away from a fight, and we’re going to have to protect the people of Illinois,” Pritzker told reporters in Springfield. “And I feel like we’re in a moment when backing away from public service when things are hard doesn’t feel right. So that’s one of the reasons I chose to run for reelection.”
Gov. JB Pritzker speaks with reporters after his campaign announcement in Springfield on Thursday. (Capitol News Illinois photo by Jade Aubrey)
Pritzker was asked whether he would have run had Trump not been elected last year.
“I think I would, but I have to say that in this moment, it feels like walking away is the wrong thing to do given who is in the White House and given how this administration is attacking people all across this country,” Pritzker said.
The governor must also choose a new running mate as Lt. Gov. Juliana Stratton has decided to run for U.S. Senate. Pritzker said he will choose one by the end of July so his campaign can start circulating nominating petitions in early August. Pritzker said in Chicago that he is looking for someone with enough experience to take over as governor if required.
Rep. Jehan Gordon-Booth, D-Peoria, may be an early front-runner for the job. Pritzker specifically referred to Gordon-Booth as qualified at a stop in East Peoria on Thursday when asked about potential running mates, WGLT reported. The assistant House majority leader has been in the General Assembly since 2009.
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 National speculation helps ‘get more for the people of Illinois,’ Pritzker says appeared first on Capitol News Illinois.
Pritzker announces reelection campaign
Capitol News Illinois
Gov. JB Pritzker will run for a third term as governor. He’s officially making the reelection announcement Thursday in a four-stop tour that spans Chicago, Rockford, Peoria and Springfield.
Should Pritzker win and serve a full term, he would become the only three-term Democratic governor in Illinois’ history.
“I’m running for re-election to protect our progress and continue solving the problems we face,” he said in an announcement video. “I love this state, and it’s the honor of my life to serve as your governor – to help lead through the most challenging of times and celebrate the most joyful ones together. I’m ready for the fight ahead.”
Pritzker has not yet announced a running mate to replace Lt. Gov. Juliana Stratton, who is running for U.S. Senate in 2026.
The state GOP issued a statement saying Pritzker should be “fired not re-hired.”
“He’s prioritized illegal immigrants over Illinois families, hiked taxes, and rammed through the largest, most bloated budget in state history,” ILGOP Chairman Kathy Salvi said in a statement.
The governor’s political future has been the topic of significant speculation, especially since he was shortlisted for former Vice President Kamala Harris’ running mate search last summer in her campaign for the White House. That and his vocal and frequent condemnations of President Donald Trump have fueled speculation of a presidential run in 2028.
The announcement that he will run for governor does not prohibit a future presidential run, because governor and president are not up in the same election cycle.
Several Republicans have announced plans to run for governor. DuPage County Sheriff James Mendrick said he would run earlier this year. Mechanic and Posen Park District Commissioner Phil Perez and businessman Joe Severino have also publicly said they are running, while Cook County GOP Chair Aaron Del Mar is also mulling a run.
Capitol News Illinois will cover the Chicago and Springfield events and have full coverage later today.
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 Pritzker announces reelection campaign appeared first on Capitol News Illinois.
Attorney General Raoul joins lawsuit challenging Trump’s termination of federal grants
Capitol News Illinois
SPRINGFIELD – Attorney General Kwame Raoul announced this week he has joined another multistate lawsuit challenging the Trump administration’s decision to withhold billions of dollars in federal funds that had previously been approved for states and other grantees.
The complaint, filed Tuesday in U.S. District Court in Massachusetts, challenges several actions the administration has taken since Trump returned to office Jan. 20 that involved terminating federal grants that had previously been approved by various agencies.
Each of those actions, the lawsuit argues, were based on a misuse of a single clause in one regulation under the federal Office of Management and Budget. That clause allows agencies to terminate a grant if the agency determines the award “no longer effectuates the program goals or agency priorities.”
“The Trump Administration has claimed that five words in this Clause — ‘no longer effectuates . . . agency priorities’ — provide federal agencies with virtually unfettered authority to withhold federal funding any time they no longer wish to support the programs for which Congress has appropriated funding,” the lawsuit alleges.
The suit is one of more than a dozen Raoul has joined as part of a coalition of Democratic attorneys general who have been battling the administration since Trump’s second inauguration in January.
Speaking Monday to a congressional panel made up of Democratic members of the U.S. House and Senate judiciary committees, Raoul joined three other members of that coalition to explain their litigation campaign.
“Whether or not I disagree with President Trump on his policy agenda, he must act in a lawful way that is consistent with the Constitution and the laws that Congress has enacted,” Raoul said. “Unfortunately, the president and his administration have chosen, with many of their actions, to ignore the Constitution and federal law. And when constitutional guarantees are ignored, all Americans are at risk.”
Grants affected by cuts
The lawsuit challenges three specific funding cuts that have directly affected the state of Illinois. Those include:
The U.S. Department of Agriculture’s decision in March to halt reimbursements under the Local Food Purchase Assistance Program, which provided funding for nonprofit organizations to buy locally grown food products from farmers for free distribution to vulnerable communities.
A decision by the Federal Emergency Management Agency to terminate two Shelter and Services Program Grant awards to the Illinois Department of Human Services totaling $29 million. The money was intended to reimburse Illinois for the cost of providing food, shelter and medical care to migrants whom the U.S. Department of Homeland Security had released to relieve overcrowding at federal detention facilities.
And a decision in May by the U.S. Department of Labor to terminate grants totaling $28.8 million to the Illinois Department of Employment Security for modernization of the state’s unemployment insurance system.
According to the lawsuit, OMB first adopted the regulation in 2020, near the end of the first Trump administration. At the time, according to the Federal Register, the agency said the clause was intended to allow agencies to end a grant program under specific conditions, but that it was not intended to let them terminate grants “arbitrarily.”
The clause was later updated to include its current wording in 2024, near the end of Joe Biden’s administration. However, according to the complaint, “OMB never suggested, in either the 2020 or 2024 rulemaking, that a grant could be terminated even though the grant was continuing to serve the very goals for which the monies had initially been awarded, merely because the agency’s priorities shifted midway during the use of the grant—let alone with no advance notice.”
As of Wednesday, the case had not yet been scheduled for a hearing.
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 Attorney General Raoul joins lawsuit challenging Trump’s termination of federal grants appeared first on Capitol News Illinois.