104th ILLINOIS GENERAL ASSEMBLY:
The Illinois General Assembly is adjourned for the week. Both chambers will return to session February 18 through 20. The Senate canceled Thursday’s session. February 12 marks a state holiday honoring former President Lincoln.
Today is the deadline for filing legislation for the 2025 Spring Session.
The House passed resolutions condemning President Trump’s recent Executive Orders and other actions. The resolutions — which all passed 73-0 — addressed federal deportation efforts, tariffs, rescinding federal funding, January 6 pardons, and ending DEI. Republican members left the chamber and did not vote on any of the resolutions.
Some Senate Committees met this week, but no House Committees did. A measure prohibiting the manufacture and sale of products containing various additives (like brominated vegetable oil, potassium bromate, propylparaben, Red Dye 3, and titanium dioxide) passed out of the Senate Public Health Committee. SB 93 (Preston) received a vote of 7-3 and now goes to the full Senate for consideration.
With committees now organized and the filing deadline passed, lawmakers will focus on committee-level legislation. The Governor will offer his Budget and State of the State address to a joint session of the legislature at noon on February 19.
2025 Spring Session Key Dates and Deadlines:
February 7: Deadline – Bill Introduction Deadline Both Chambers
February 19: Governor’s Budget and State of the State Address
March 21: Deadline – Committee Deadline Both Chambers
April 11: Deadline – Third Reading Deadline Both Chambers
May 9: Deadline – Committee Deadline Bills in Opposite Chamber
May 23: Deadline – Third Reading Deadline Bills in Opposite Chamber
May 31: Adjournment
GOVERNOR’S HIGHLIGHTS:
FY 26 Budget: The Governor’s Feb 19 budget proposal will be his sixth one – and is expected to be his most challenging to date.
Illinois is projected to have a $3.2 billion budget shortfall. Budget makers must navigate an array of challenges, including mandated increases in funding for schools and pensions, slowing revenue streams (including uncertainty with federal funding), previous tax disbursement errors, and healthcare funding complicated by rising medical costs. Lawmakers must address the transit fiscal cliff and the City of Chicago wants help addressing longstanding financial issues with the Chicago Public Schools system, which have been exacerbated by the depletion of federal COVID-19 relief funds. Public employee unions are also advocating for enhanced pension benefits for Tier 2 employees (state workers, teachers, and other employees hired since 2011).
Pritzker has pledged to present a “balanced budget” to keep Illinois on track for further credit upgrades, but questions remain about how he plans to fund next year’s spending plan. The Governor’s office is advising advocates and lawmakers against creating or expanding programs and is requesting state agencies to identify “efficiencies.” Raising taxes should be a “last resort,” the Governor asserted this week. The final budget, including any potential revenue sources, will ultimately be negotiated with the Democratic supermajorities in the General Assembly. Read more about the upcoming budget here.
New Laws: Governor Pritzker signed House Bill 4781, known as the Kinship in Demand (“KIND”) Act. This law authorizes the Illinois Department of Children and Family Services to establish more adaptable standards to certify grandparents (and other relatives) to safely provide care for children under DCFS supervision. Additionally, the bill creates a pathway for more youths in care to achieve permanent homes through guardianship. Read more here.
Cannabis Seed-To-Sale: Illinois now has a new seed-to-sale system for its cannabis programs. Metrc, a secure and scalable system, will modernize the industry by using RFID tags for accurate data entry. These state-funded tags will be free for cannabis businesses under certain conditions. The system will not only reduce manual audits and increase time for health inspections but also analyze industry trends through reporting tools. Read more here.
Governor Bars January 6 Participants From State Employment: Illinois Governor JB Pritzker has barred individuals involved in the January 6th U.S. Capitol attack from state employment, countering President Trump’s recent pardons. Pritzker directed the Department of Central Management Services to implement this restriction, citing the participants’ conduct as contrary to state values. Read more here.
IDNR Projects Receive Funding: The Capital Development Board announced an allocation of over $60 million for deferred maintenance for the Illinois Department of Natural Resources. These projects will address necessary repairs, including updates to water and wastewater systems, replacement of trails and bridges, and site preservation. Read more here.
Gubernatorial Appointments: Governor Pritzker appointed the following:
· Amy Meek will serve as Deputy Director for the Department of Human Rights.
· Araceli Garza will continue to serve as a Member of the Capital Development Board.
· David Taewoong Chung and Juleigh Nowinski Konchak will continue to serve as Members of the State Board of Health.
OTHER NEWS:
CGFA January Report: In its monthly report, the Commission on Government Forecasting and Accountability characterizes the revenue for the State’s General Funds as having had a mixed performance.
Base revenues increased by approximately $65 million in January 2025 (a 1.4% rise over the prior year). But total receipts were $35 million lower than the same period last year, largely due to a one-time $100 million transfer that the General Funds received in the prior year.
December saw a slight dip in federal receipts, but January brought a $139 million increase in this category (when compared to the previous January). Federal Sources are now 6.7% above last year’s pace due to January’s gains. Still unclear: the impact of the ongoing Trump Administration policy changes on the amount Illinois receives in future federal dollars.
Personal Income Tax revenues slowed from their strong results in December, with gross gains of $111 million, an increase of 3.8%. On a net basis, after subtracting non-General Fund distributions to the Income Tax Refund Fund and the Local Government Distributive Fund, these tax receipts were up $95 million. In contrast, Corporate Income Tax revenues had another subpar month, falling $145 million on a gross basis – a decrease of 41.8%. On a net basis, these receipts declined $117 million. The Sales Tax gross receipts declined slightly, decreasing by $4 million. This year-over-year net decline was even more pronounced, with a $24 million decrease.
The performance of All Other State Sources was mixed in January, but collectively managed a $12 million increase. Revenue gains from Insurance Taxes (+$15 million) and Interest on State Funds & Investments (+$7 million) offset declines in the Estate Tax (-$11 million), Public Utility Taxes (-$2 million), and Other Sources (-$2 million). Additionally, $56 million of the annual $244 million Cook County Intergovernmental Transfer was received in January.
The January totals for Transfers In were mixed. The Sports Wagering Transfer — a new addition in FY 2025 — had its strongest month so far, contributing $28 million to the transfer total. The casino-related Gaming Transfer also saw strong year-over-year growth of $10 million. Cannabis Transfers posted a $1 million gain and Lottery Transfers held steady at $75 million. However, Other Transfers declined by $79 million. The cause: a significantly smaller periodic transfer of revenues from the Capital Projects Fund to the General Revenue Fund. This January saw $60 million in revenue transfers, a substantial drop from last January’s $145 million. As a result, total Transfers In were $40 million lower than the previous year. Read the full report here.
Illinois Interchange Fee Prohibition Act: A federal judge ruled that retailers cannot join the defense of an Illinois law banning bank “swipe fees” on sales taxes and tips.
Among those seeking to become intervenor defendants in litigation over the Illinois Interchange Fee Prohibition Act were the National Association of Convenience Stores, the National Retail Federation, Food Marketplace Inc., and two Illinois merchant trade groups. However, Judge Virginia M. Kendall of the US District Court for the Northern District of Illinois determined that because Illinois Attorney General Raoul is providing an adequate defense of the law, no need exists for additional defendants. A status hearing on the case was held on February 4. Read the ruling here.
Gender Affirming Care: Attorney General Raoul, along with 13 other state attorneys general, reaffirmed the commitment to protecting access to gender-affirming healthcare despite the recent executive order issued by the Trump administration. In Illinois, the Human Rights Act mandates that healthcare providers serve all residents and prohibits discrimination based on sex, including gender identity.
In a statement, the coalition of attorneys general declared: “We support healthcare policies that respect the dignity and rights of all individuals. Healthcare decisions should be made by patients, families, and doctors, not politicians. Gender-affirming care is an essential, lifesaving treatment that enables individuals to live authentically.” Read more here.
Chicago Mayor Will Testify Before Congress: Mayor Brandon Johnson will testify before the U.S. House Oversight and Government Reform Committee on March 5, discussing Chicago’s sanctuary city status. The mayors of Boston, Denver, and New York are also scheduled to testify.
DOJ Sues Illinois and Chicago Over Immigration Enforcement: The U.S. Department of Justice on Thursday filed a lawsuit in federal court in Chicago against Illinois and the city of Chicago, accusing them of obstructing the Trump administration’s immigration enforcement policies and seeking a court order to invalidate so-called sanctuary laws.
Citing a national emergency declaration by President Trump on Inauguration Day, the DOJ is seeking to block the enforcement of several state and local laws that “interfere with and discriminate against” the federal government’s enforcement of immigration laws.
In a related move, newly installed U.S. Attorney General Pam Bondi issued a memo on Wednesday stating that sanctuary jurisdictions should not receive federal DoJ grants, and the department should take actions against jurisdictions that impede immigration enforcement.