104th ILLINOIS GENERAL ASSEMBLY:
The Illinois General Assembly stands adjourned for the week. The Senate was in session Tuesday through Wednesday, while the House met Tuesday through Friday. Both chambers return to session Tuesday, May 19, through Friday, May 22. Note that Friday, May 22, is the 3rd Reading deadline for substantive bills in the opposite chamber. A little over two weeks remain in the Spring Session; adjournment is scheduled for May 31.
Both chambers spent the week considering legislation at the committee level. The Senate also passed roughly 30 bills and approved several gubernatorial appointments. The House considered a handful of resolutions but otherwise took no substantive floor action this week.
The Senate will reconvene at 4 pm on Monday, May 18. The House will convene on Tuesday, May 19 at noon. A list of Senate Committee hearings for next week is here; House hearings are here.
Budget Update: The Governor’s Office of Management and Budget (GOMB) and the legislature’s Commission on Government Forecasting and Accountability (COGFA) released updated revenue projections for the current and upcoming fiscal years. For FY 2026, GOMB increased its revenue forecast by $445 million to $55.673 billion, while COGFA decreased its prediction by $75 million to $55.908 billion—a difference of $235 million. Deputy Governor Andy Manar noted that stronger individual and corporate income tax receipts have not fully offset declines in sales tax revenues and lower federal reimbursements.
Looking ahead to FY 2027, GOMB projects revenues of $55.883 billion ($173 million lower than previous estimates), while COGFA anticipates $55.335 billion ($190 million below its prior forecast). Manar emphasized the importance of fiscal discipline amid economic uncertainties and stated that budget negotiations over the next two weeks will focus on fiscal responsibility while addressing the impact of federal cuts to core services. The new fiscal year begins July 1.
GOMB also provided an update on state expenditures. Spending for the Department of Healthcare and Family Services is currently $167 million over budget, or 2.3% over. Another challenging area: state employee group insurance, whose expenses exceeded its budget by $87 million (3.9%). Pension expenditures have also increased by over a billion dollars; however, the GOMB analysis clarifies that this surge is due to the timing of pension system prepayments. The comptroller’s office is unable to make “annual pension contributions above the certified amount for a fiscal year,” as noted in the explanation.
COGFA’s report is here.
Artificial Intelligence: Members of the Senate Democratic Caucus filed a package of bills on the use of artificial intelligence. The measures do not appear to be a coordinated bicameral effort. Representative Gong- Gershowitz, who leads the House Democrats’ AI working group, said that given the complexity of legislation to regulate artificial intelligence, her chamber is taking a “deliberative approach” and had hoped to “have a conversation with the Senate before finalizing legislation.” While the Senate filed several separate bills to address various regulatory topics, it is possible that the two chambers will ultimately reconcile their two versions into an omnibus bill at the end of session.
As adjournment nears, it’s important to remember how long it takes to pass legislation through both chambers. This AI package was filed as amendments to Senate Bills currently before the Senate. If the Senate approves this package, it will require three readings on three separate days in the House. Amending the language onto House Bills in the Senate would allow for immediate action in the House.
The amendments all passed the Senate Executive Committee and head to the full Senate. Many of the amendments remain a work in progress, and any further amendments will return to the committee for consideration.
The package includes:
· SFA # 1 to SB 315 (Edly-Allen) requires large frontier developers – like ChatGPT and Claude – to provide an independent, third-party annual report explaining what mechanisms they have in place to mitigate catastrophic risks, provide transparency reports, and report critical safety incidents to IEMA and the Attorney General. The measure further requires companies to report a critical safety incident within 72 hours of learning about it, or 24 hours if the incident poses an imminent risk of death or serious physical harm. Opponents objected to the third-party audit, the broadening of language on annual reporting requirements, the 24-hour reporting period, and the escalation of penalties in the amendment. Passed the Senate Executive Committee unanimously.
· SFA # 1 to SB 316 (Ellman) requires AI companies to implement methods for detecting user expression of suicidal ideation or self-harm, work to prevent such harm, and provide a notification to the user that refers them to a crisis service provider, such as the 988 suicide hotline. The bill also includes a private right of action. Passed the Senate Executive Committee unanimously.
· SFA # 1 to SB 317 (Ventura) requires notification to the consumer if they are talking with an AI chat interface as it relates to trade or commerce; the consumer must be notified that it is an automated system at the start of the conversation. The bill includes a private right of action. Passed the Senate Executive Committee unanimously.
· SFA # 1 to SB 318 (Stadelman) prevents the use of bots to purchase tickets in excess and prohibits a reseller from falsely representing that it is affiliated with an artist, team, or venue. Passed the Senate Executive Committee unanimously.
· SFA # 1 to SB 340 (Murphy) mandates that consumers have the option to opt out of having their data used for ads or sold to third parties. The measure also protects individuals from being subjected to algorithmic profiling that could influence major life decisions like loan approvals, job screenings, or insurance rates. The bill also includes a private right of action. Passed the Senate Executive Committee on a partisan roll call.
· SFA # 1 to SB 343 (Guzmán) prohibits landlords from coordinating rental pricing indirectly through a shared third-party service or software, such as an algorithm that sets prices across multiple competing landlords. Passed the Senate Executive Committee 9-4.
· SFA # 1 to SB 415 (Villa) allows school districts to use biometric data only for legitimate instructional purposes by the 2027-2028 school year. Passed the Senate Executive Committee unanimously.
· SFA # 1 SB 416 (Martwick) prohibits teachers from using artificial intelligence to assign grades to students’ work. Requires districts to adopt a policy regarding the use of AI in the district. Passed the Senate Executive Committee unanimously.
Insurance Reforms: Auto and homeowners insurance reforms passed the Senate this week.
As amended, SB 714 (Villivalam) regulates automobile insurance rates, barring insurers from raising premiums by more than 10% without notifying the consumer at least 30 days before the policy’s renewal or anniversary date. The measure also prohibits rates that are excessive, inadequate, or unfairly discriminatory; establishes a determination and hearing process when the Department of Insurance finds a rate filing to be excessive, inadequate, or unfairly discriminatory; and prohibits cost shifting in automobile insurance. Passed the Senate 42-14-1 and now heads to the House for consideration.
HB 4273 (Didech/Hastings) regulates homeowners insurance rates by: (1) requiring insurers to give policyholders at least 60 days’ notice before raising a premium more than 10% at renewal or on the policy anniversary date; (2) prohibiting rates that are excessive, inadequate, or unfairly discriminatory; (3) establishing a determination and hearing process when the Department of Insurance finds a rate filing excessive, inadequate, or unfairly discriminatory, including standards for when a filing is considered complete; and (4) banning cost shifting for homeowners insurance. Passed the Senate 43-14-1 and now heads back to the House for concurrence.
Pensions: SFA #1 to SB 676 (Lightford) changes how Illinois funds its five state pension systems (downstate teachers, state employees, university employees, judges, and legislators). The goal is to reduce long-term pension debt costs by making earlier payments and authorizing borrowing through pension obligation bonds. SFA # 1 was filed this week and is assigned to the Senate Appropriations Committee. Specifically, the proposal:
1. Requires Earlier Pension Payments: Beginning in fiscal year 2027, Illinois would make its annual pension contributions on the first day of each fiscal year instead of spreading payments throughout the year.
2. Allows Up to $6 Billion in Pension Obligation Bonds: From FY2027–FY2031, the State could issue up to $6 billion in Pension Obligation Bonds if the State Actuary certifies that doing so would be beneficial to the pension systems.
These bonds would borrow money up front, with the proceeds deposited into pension systems immediately to reduce unfunded pension liabilities. The legislation prohibits bond proceeds from being used to pay current operating pension costs, replace required state contributions, or pay for future benefits earned after the deposit date.
3. Permits Extra “Front-Loaded” Contributions: Between FY2027–FY2031, the Governor could direct additional supplemental payments into the pension systems, so as to pay pension debt down faster.
4. Recalculates the Pension Funding Schedule: From FY2032–FY2045, Illinois would move to a new “re-amortized” funding schedule.
5. Keeps the 90% Funding Goal: The bill does not move Illinois to 100% funding but rather keeps the current funding level for the pension systems to reach at least 90% funded by FY2045.
Other Highlights: The Legislature considered several other measures this week, including:
HB 4948 (Deuter/Morrison) establishes the Intelligent Speed Assistance (ISA) Program for drivers who have been convicted of multiple reckless driving or high-speed offenses (exceeding 26 mph over the limit) within a 12-month period, requiring them to install speed-limiting technology in their vehicles or have their license suspended. Passed the Senate Transportation Committee unanimously and moves to the full Senate.
HB 5107 (Syed/Hastings) requires school districts and private schools to consider the use of a mobile panic alert system in the development of their school emergency and crisis response plans by the beginning of the 2028-2029 school year. Passed the Senate Education Committee unanimously and goes to the full Senate.
SB 4041 (Murphy) requires O’Hare and Midway airports to conduct studies every five years on eligibility for residential sound insulation programs. Using modern modeling techniques to collect data, the study would aim to ensure every household with excessive airport noise is eligible for sound insulation assistance. Passed the Senate unanimously and heads to the House for consideration.
SB 3772 (Villanueva/Jimenez) strengthens environmental justice protections (see previous reports for further detail). Passed the House Energy and Environment Committee 16 – 9 and now heads to the full House.
SB 3465 (Guzman/Mah) sets minimum sanitary conditions and requires free menstrual hygiene products to be available on construction sites. Also requires, among other aspects, that employers provide lactating construction workers with reasonable accommodations to express breast milk. Passed the House Labor Committee 16-9 and moves to the full House.
HB 4966 (Cassidy/Villanueva) creates the SECURE Act, which strengthens rights, healthcare access (including gender-affirming and reproductive healthcare, which are lawful in Illinois), and placement protections for youth ages 8 and older in DCFS care, particularly those in out-of-state placements. Passed the Senate Judiciary Committee 6-3 and now heads to the full Senate.
Key 2026 Session Dates:
May 22: Deadline — 3rd Reading Substantive Bills in Second Chamber
May 31: Adjournment
GOVERNOR’S HIGHLIGHTS:
Governor Urges Federal Approval of Broadband Proposal: Governor JB Pritzker has urged U.S. Secretary of Commerce Howard Lutnick to quickly approve Illinois’ Broadband Equity, Access, and Deployment (BEAD) Final Proposal, which aims to secure $1.04 billion in federal funding to improve broadband access for over 383,000 Illinois residents predominantly in rural areas. Illinois and California are the only states still waiting for approval, and Pritzker expressed concerns about the prolonged delay, as it has been over seven months since Illinois submitted the proposal on September 30, 2025, despite the National Telecommunications and Information Administration’s goal of completing reviews within 90 days. Read more here and here.
IDFPR Launches Online Complaint Portal: The Illinois Department of Financial and Professional Regulation has introduced a new online submission system aimed at making it easier for Illinois residents to file complaints against financial institutions, especially in light of reduced federal enforcement. This new portal now allows consumers to submit complaints for both the Division of Banking and the Division of Financial Institutions, streamlining the process and enhancing accessibility for residents throughout the state. Read more here.
IDFPR CORE Licensing System: Licensed Practical Nurses and Temporary Licensed Practical Nurses can now use the IDFPR online licensing portal to apply for new licenses or reinstate their existing licenses. Read more here.
Strong Communities Program Grants Available: The Illinois Housing Development Authority is accepting applications for grant funding through its Strong Communities Program, aimed at enhancing local affordable housing and revitalization efforts. Local governments can get grants of up to $750,000 to address vacant, abandoned, and deteriorated residential properties. Funding can be used for activities such as acquiring, rehabilitating, demolishing, and landscaping these properties. Eligible applicants include units of local government, which can also collaborate to submit a joint application, along with land banks and Regional Planning Commissions applying on their behalf. Read more here.
Economic Empowerment Centers (EEC) Grant Program: The Illinois Department of Commerce and Economic Opportunity has announced $2.5 million in funding for the second round of the Economic Empowerment Centers (EEC) Grant Program, aimed at bolstering partnerships and tailored initiatives in communities facing systemic barriers. Previously, $2.5 million was awarded to 10 recipients, resulting in the launch of 100 businesses, the creation of over 160 jobs, and support for more than 2,000 entrepreneurs. Grantees will be selected through a competitive process. Read more here.
IDOT Offers Student Loan Repayment for Engineers: To help address a nationwide engineering talent shortage and attract early-career professionals, the Illinois Department of Transportation announced a hiring initiative to repay up to $15,000 per year in eligible student loan debt for as many as 50 newly hired civil engineers who graduated from Illinois schools. Repayment is capped at $60,000 total and begins after the engineer has completed four years of service at IDOT. Read more here.
OTHER NEWS:
Cook County Property Tax Sales: A federal judge has determined that Cook County may be liable for potentially tens of millions of dollars for violating homeowners’ constitutional rights through its tax sales. Nearly three years ago, the U.S. Supreme Court deemed that Illinois and numerous other states had illegal tax sale systems.
In February, the General Assembly allowed the Treasurer for the second time to postpone Cook County’s delinquent tax sales, moving them to December – an attempt to keep more properties from being added to the growing list of liabilities that have accumulated in Cook County due to previous tax sales. Read more here.