104th ILLINOIS GENERAL ASSEMBLY:
The Illinois General Assembly returns for a two-week Veto Session on October 14 – 16 and October 28 – 30. While the Veto Session schedule continues to take shape, we are monitoring developments on energy policy and the transit fiscal cliff. The General Assembly could also take action on a handful of gubernatorial vetoes. The Governor issued two total vetoes, one amendatory veto, and one item/reduction veto (which does not require legislative action).
RTA Fiscal Cliff: The RTA held an Ad Hoc Committee meeting at 9:00 a.m. (Friday, October 3) to discuss updates to the fiscal cliff. The RTA is expected to issue a statement, release presentation slides, and provide additional information at that time.
Ahead of the meeting, the RTA provided an update, noting that state sales tax changes, relatively strong economic performance, and cost-control efforts will result in a smaller cliff in 2026 than the $771 million projected in last year’s budget. Other management strategies include asking service boards to include a 10% fare increase in their 2026 budgets and shifting $74 million in discretionary funding to the CTA to delay cuts. Despite these actions, the RTA estimates that the CTA will exhaust its federal funding in mid-2026, and Metra at the end of 2026; Pace will not confront a gap in 2026 for its mainline suburban services.
If the current trajectory continues, the transit system will experience rolling service cuts and potential layoffs starting in mid-2026 and again in 2027. Absent new revenue, the gap will revert to approximately 20% of the RTA’s operations budget and exceed $700M by 2027.
Read more here. Additional information will be provided when it is made available.
Illinois AFL-CIO Withdraws from Illinois Agreed Bill Process: The Illinois AFL-CIO announced this week that it is withdrawing from the Agreed Bill process. This process was established in the mid-1980s to promote collaboration between businesses and labor in negotiating amendments to the Unemployment Insurance and Workers’ Compensation Acts.
In its announcement, the AFL-CIO President stated that “labor’s good-faith participation” has not been reciprocated nationally, as workers in many Republican-controlled states have been sidelined in favor of business interests. While the AFL-CIO remains open to dialogue, it aims to advance workers’ rights without being constrained by a process that hinders progress, especially given the lack of engagement from business organizations at the federal level and in other states.
A coalition representing employers responded by emphasizing the importance of the agreed bill process in Illinois, which has facilitated collaboration between business groups and organized labor for four decades on unemployment insurance and workers’ compensation policies. The business community argues that the bipartisan approach has been supported by both Democratic and Republican administrations since 1982 and has resulted in beneficial policies, a healthy unemployment trust fund, and fair workers’ compensation. The coalition urges policymakers to prioritize collaboration and compromise, particularly in the face of increasing political polarization, to foster economic growth and serve the interests of both workers and employers in Illinois.
It remains to be seen what the true impact of the AFL-CIO’s actions will be. Legislative leaders and the Governor’s office can still choose to adopt a bipartisan approach that includes negotiations by all parties.
Process Begins to Replace Representative Costa Howard: The Democratic Party of DuPage County has opened the application process for the appointment to the 42nd House District to replace Representative Terra Costa Howard. A public meeting is scheduled for October 12, where applicants will be allowed three minutes to speak.
Upcoming Committee Hearings:
The House has subject matter committee hearings scheduled. See below for details.
10/6/2025 11:00 AM – Gun Violence Prevention Committee
C-600, 6th Floor and Virtual Room 1 – Michael A. Bilandic Building – Chicago , IL
Subject Matter: Gun Violence Prevention: Community Violence Intervention
GOVERNOR’S HIGHLIGHTS:
Six-Year Infrastructure Program: Governor JB Pritzker and the Illinois Department of Transportation announced a $50.6 billion multi-year infrastructure program for 2026-2031, representing the largest investment in state history. This comprehensive plan will address transportation across all modes, benefiting all 102 counties in Illinois and including $400 million for 223 local projects focused on roads, transit, and bike and pedestrian improvements. The program allocates $32.5 billion for state and local roads and bridges, with $5.5 billion for the current fiscal year. Additionally, it includes substantial funding for transit, rail, aviation, and waterways. Notably, $400 million is dedicated to supporting disadvantaged communities and promoting small, minority- and women-owned businesses through a Disadvantaged Business Enterprise goal. Read more here and here.
EV Rebate Program: The Illinois Environmental Protection Agency announced the next application cycle for the EV Rebate Program, which will open on October 28, 2025, and close on January 31, 2026. Several changes were made to the program, including:
· A revised definition of “low-income applicant” based on 80% of the regional or county median income, according to HUD standards.
· The application period has been extended to 180 days from the date of vehicle purchase (previously 90 days).
· The Illinois General Assembly allocated $14 million for the program in fiscal year 2026, with rebates issued as funds are available.
Read more here.
Illinois Quantum and Microelectronics Groundbreaking: This week, Governor JB Pritzker, along with leaders from prominent quantum businesses, research institutions, academia, and government organizations, celebrated the groundbreaking of PsiQuantum’s facility at the Illinois Quantum and Microelectronics Park (IQMP) on Chicago’s South Side. This new development will create state-of-the-art facilities that are projected to have a significant impact on the economy, generate thousands of jobs, and establish Illinois as a leader in quantum innovation. PsiQuantum will serve as the anchor tenant, hosting the first utility-scale, error-corrected quantum computer, alongside other global firms such as IBM, Diraq, and Infleqtion. Read more here.
LIHEAP Utility Assistance: Income-eligible families can now apply for the Low-Income Home Energy Assistance Program (LIHEAP), which supports eligible households with utility costs for natural gas, propane, and electricity. Applications opened on October 1 and will remain open through August 15, 2026, or until funds are exhausted. Read more here.
IHDA Awards Habitat for Humanity $2 Million: The Illinois Housing Development Authority has allocated $2 million to Habitat for Humanity of Illinois to administer a new round of the Community Impact Fund, a program that helps working families, especially those in Central and Southern Illinois, purchase a home. The program is expected to create 100 new homeowners across Illinois. Read more here.
ATTORNEY GENERAL HIGHLIGHTS:
Illinois Officials Urge Supreme Court to Reject Amazon Limitation of Minimum Wage Law: Illinois Attorney General Kwame Raoul and the Illinois Department of Labor urged the Illinois Supreme Court to deny Amazon’s request to limit the application of the Illinois Minimum Wage Law in a lawsuit involving warehouse workers. The workers allege that Amazon did not compensate them for mandatory public-health screenings conducted before shifts. Raoul emphasized that Illinois law protects workers’ rights more strongly than federal law, asserting that employees should be paid for time spent on required pre-shift tasks. The case, Johnson v. Amazon.com Services LLC, has seen federal judges dismiss both federal and state claims based on a federal exemption for certain job activities. The federal appellate court has requested that the Illinois Supreme Court clarify whether this exemption applies under state law. Raoul and IDOL argue that Illinois law does not include such an exception, and historically, the state has enacted wage standards that surpass federal regulations. Read more here.
Federal Court Rules Energy Cuts Illegal: Attorney General Kwame Raoul achieved a legal victory for Illinois’ energy programs when the U.S. District Court for the District of Oregon ruled that the U.S. Department of Energy’s (DOE) cap on state energy program funding is illegal. Judge Mustafa Kasubhai granted a motion for summary judgment in favor of Raoul and a coalition of 18 states, stating that the DOE’s policy violated the Administrative Procedure Act. The policy aimed to cap reimbursements for administrative costs at 10% of a project’s budget, which had not previously been subject to a cap. The court ruled that this cap was illegal and a violation of reimbursement regulations for DOE grants. Read more here.
Attorney Generals Issue Joint Statement on the Safety of Mifepristone: This week, Illinois Attorney General Kwame Raoul joined a coalition of 20 attorneys general to issue a joint statement expressing concerns about a review of mifepristone by the U.S. Food and Drug Administration (FDA). This review was initiated by Health and Human Services Secretary Robert F. Kennedy Jr. and FDA Commissioner Makary in response to a letter from Republican state attorneys general asking the FDA to impose restrictions on or withdraw mifepristone from the market. Read more here.
AG Raoul Files Lawsuit Against DOJ: Attorney General Kwame Raoul, along with a coalition of 22 attorneys general, filed a lawsuit against the U.S. Department of Justice to block new rules that would prevent states from using certain federal grant funds to provide services to undocumented immigrants and others unable to prove their status. The lawsuit, filed in federal court, argues that these restrictions are unconstitutional and were improperly implemented, potentially harming survivors of domestic violence and other violent crimes by limiting their access to support services. Read more here.
OTHER NEWS:
2026 Election Update: Democratic Socialist organizer Dallas Knapp announced that he is running in the 12th House District, currently held by Representative Margaret Croke, who is running for Comptroller.
CGFA September Report: The Commission on Government Forecasting and Accountability released its September Report. For the month, the General Revenue Fund showed significant improvement compared to the beginning of the fiscal year, rising by $413 million (8.6%), driven primarily by strong Personal Income Tax collections, Sales Tax revenues, and Federal Sources. Overall, revenues for the first quarter of FY 2026 increased by $450 million (3.7%). Personal Income Tax receipts grew by $307 million (10.3%), despite lower true-up reallocations compared to last year. Sales Tax revenues rose by $54 million (5.6%), while Federal Sources saw a dramatic increase of $239 million (199.2%), eliminating a previous deficit.
However, Corporate Income Tax revenues declined by $196 million (-18.1%). Other state revenue sources showed mixed results: the Estate Tax increased by $22 million, but Insurance Taxes, Corporate Franchise Taxes, Liquor Taxes, and Public Utility Taxes saw minor decreases. Transfers In were also positive, increasing by $31 million, with notable gains in Lottery and Gaming Transfers, while Cannabis Transfers remained steady. Overall, September marked a strong recovery in revenue collections after a slow start to the fiscal year. Read more here.
Energy Funding Cuts: The Trump Administration announced nearly $8 billion in cuts for energy projects nationwide. Illinois stands to lose $583 million, which is targeted for transportation electrification, solar energy, green buildings, and a range of other energy initiatives. Read more here.
New Education Report: Illinois now ranks 18th for state spending per student, up from 47th in 2008, according to Advance Illinois’ annual “The State We’re In” report. Read more here.
Property Tax Sales: Illinois counties faced a setback in a class action lawsuit regarding property tax sales, as U.S. District Judge Nancy J. Rosenstengel ruled against their attempt to dismiss the case. The lawsuit could potentially result in millions of dollars in reimbursements for former property owners due to alleged unconstitutional tax recoupment practices. The case stems from a Supreme Court decision in May 2023 (Tyler v. Hennepin County), which held that the sale of unpaid tax bills to third parties and subsequent transfers of property ownership violated property owners’ Fifth Amendment right to “just compensation.” Read more here. The opinion is here.