104th ILLINOIS GENERAL ASSEMBLY:
The Illinois General Assembly adjourned the 2026 Spring Legislative Session until the call of the presiding officers. As has been typical of recent sessions, the legislature concluded its work in the early hours of the morning on June 1.
Each legislative session has its own rhythm and flow. This year’s session felt particularly disjointed and as if the two chambers were operating independently for most of the session. The legislative calendars were not aligned as in years past, and this year both chambers were not consistently in session at the same time until May. It appeared as if there were little appetite for collaboration on most of the major issues until the end of session, if at all.
The final days of session were a brutal marathon, with several bills not being finalized until the last moments of the session. Legislators ultimately approved the FY 27 operating and capital budgets, the FY 26 supplemental and omnibus packages on revenue and Medicaid. The General Assembly also approved some AI and social media regulations, insurance reforms, a measure to ban cell phones in schools, cannabis and hemp policies, efforts to unionize ride share drivers and changes to the 340B prescription drug program.
Several big-ticket items did not cross the finish line. The General Assembly did not pass legislation authorizing mega projects incentives (including efforts to move the Chicago Bears to Arlington Heights), Governor Pritzker’s BUILD affordable housing plan, an overhaul of public university funding, community college baccalaureate degree authorization, a Tier 2 pension overhaul, or regulations on data centers. Those items could be considered in the Fall Veto session or during next year’s spring session.
In total, 395 bills passed both chambers this year, including 229 House bills and 166 Senate bills. The General Assembly has 30 days to send legislation to the Governor’s desk after its passage. Upon its receipt, the Governor has 60 days to take action on it. If he does not act within that time frame, the legislation automatically becomes law.
The Fall Veto Session calendar is here.
Budget: Budget makers faced significant challenges again this year when crafting the budget. A slowing economy with rising inflation, coupled with a shifting federal landscape, including a loss of federal revenue and a reduction in federal funding for human services benefits, led budget makers to use what they characterize as a “surgical approach” to crafting the FY 27 budget. Progressives and advocates lobbied for additional revenue sources to shore up education and human services, among other priorities, although there was little widespread support to build some of the potentially uncertain revenue streams into the FY 27 base (see below for further detail). Despite these pressures, the Governor and budget makers argued their final budget package honored their promise not to raise taxes on working families. Democrats described their budget as balanced and “compassionate” at a time of economic uncertainty when families are facing an affordability crisis. The fiscal year starts on July 1.
The FY 27 Budget contained in HB 111 (Welch/Sims) appropriates $55.880 billion in General Revenue Funds and assumes revenue of $55.950 billion. HB 2949 (Guzzardi/Sims) provides the budget framework; see below. SB 3019 (Tarver/Villanueva) lays out the omnibus revenue package, expected to generate roughly $800 million next year through various efforts including: enacting a social media platform fee ($200 million); phasing in the Net Operating Loss Deduction Cap ($300 million); creating a Digital Asset Excise Tax and taxing fantasy sports ($65 million); enacting a remote cigar retailer tax ($3.8 million); and redirecting surplus sales tax on motor fuel to GRF ($150 million).
The budget allocates $1.022 billion for lapse-period spending and $431 million for transfers out. Also included: statutory cost-of-living pay increases for state legislators and constitutional officers.
Under this budget configuration, Illinois remains on track to make its full pension payment. State agencies are asked to seek government efficiencies at a cost of $65 million. There are no transfers from GRF into the State’s Rainy Day Fund.
The state employees’ collective bargaining obligations are fully funded. State employee group health insurance will see a $60 million cut, but there are no projected cuts to benefits or impacts on the payment cycle. The budget does not account for any state employee layoffs and is not predicated on the closing of any state-operated correctional facilities.
LGDF is held flat at 6.47%, which will allow local governments to receive a slight increase in funding for FY 27. As will be recalled, the Governor’s introduced budget cut the LGDF percentage, which would have held local government funding flat to FY 26 and reduced their FY 27 allocation by $60 million.
As families have lost access to the safety net system, the FY 27 budget invests in food security for the most vulnerable by increasing funding for school lunches and creating a one-time resource for people who have lost SNAP.
This budget prioritizes safety net hospitals (with a $118 million one-time grant program from the Fund for Illinois Futures) and federally qualified health centers. The FY 27 budget maintains zero funding for the HBIA program (aged 42-64), and funding remains flat at $100 million for the HBIS program.
The FY 27 budget includes full funding for the state’s Evidence-Based Funding model for K-12 education ($350 million), including property tax relief grants (which were not included in last year’s budget). Districts, however, will need to forgo property tax increases for three years, rather than two as current law requires, to receive property tax relief grants.
After school programs receive an additional $10 million, while another $17 million is allocated to the free breakfast/lunch mandated categorical line. Funding for K – 12 transportation was held at the Governor’s introduced levels: regular transportation is prorated at 66% ($10 million increase over FY 26), and special education transportation is prorated at 54% ($20 million increase over FY 26).
HB 111 passed the Senate by a vote of 37-21. The House concurred by a vote of 76-39. The legislation now heads to the Governor’s desk. Read more here and here.
Revenue: SB 3019 (Villanueva/Tarver) represents the 2026 revenue omnibus which enacts the revenue changes necessary to implement the FY 27 budget as well as other revenue related changes. The bill passed the House by a vote of 73-41. The Senate concurred 36-19 and the measure heads to the Governor’s desk. The legislation does the following:
1. Creates a new fee for social media platforms. Precludes local governments from imposing their own fees or taxes.
2. Creates a framework for a tax on targeted advertising services. The budget does not rely on any revenue from this new stream because lawmakers believe it will face a constitutional challenge. Their goal is to have the framework in place to institute the tax when and if it is found constitutional. This tax was supported by the progressive caucus and the Revenue Alliance.
3. Creates sales tax exemption for middle housing.
4. Creates a progressive tax on sports wagers placed on prediction market platforms.
5. Creates a privilege tax for operators of fantasy contests.
6. Creates an excise tax on digital assets.
7. Enacts phase-out of net operating loss deductions.
8. Enacts a 6-month pause on the Consumer Price Index (CPI) adjustment for the motor fuel tax.
9. Creates a tax on distributors or remote retail sellers for tobacco products sold.
10. Enacts a partial redirect of the sales tax on motor fuels to the Department of Revenue Fund and the Road Fund.
11. Creates a sales tax holiday from August 7th to August 16th for back-to-school shopping.
12. Enacts various technical changes and cleanup of statutes across multiple acts.
13. Authorizes an extension of nine sunset provisions for various tax credits and programs.
Budget Implementation: The statutory changes necessary to fully implement the budget are laid out in HB 2949 (Guzzardi/Sims), which passed the Senate 37-18 and the House 76-39 and now heads to the Governor’s desk.
Capital Budget: HB 111 (Welch/Sims) includes capital appropriations and reappropriations. Highlights include:
· $500 million in new funding to IDOT to enhance the Multiyear Improvement Program to provide additional support for downstate road projects
· $250 million in new funding for IHDA to address missing middle housing affordability
· $50 million in new funding for the Surplus to Success Program at CMS to continue demolition, remediation, and redevelopment of unused state-owned property
· $365 million in new funding for DCEO’s Prime Sites, site readiness, and public infrastructure grant programs
· $100 million in new funding to continue advancing statewide Enterprise Resource Planning and technology modernization initiatives
· $100 million in new bond funding for IEEPA to expand water loan programs and leverage federal capitalization grants for water infrastructure projects
Bond Authorization: SB 3255 (Harmon/Rita) creates the Bond Authorization Act of 2027, authorizing $3.8 billion in new bonding authority ($2.4 billion in General Obligation Bond and $1.3 billion in Build Illinois Bonds) to fund state deferred maintenance and capital projects outlined in the budget. Passed the House 77-39. The Senate concurred 37-21 and the bill now heads to the Governor’s desk.
FY 26 Supplemental: HB 111 (Welch/Sims) includes supplemental appropriations for SERS ($200 million); restoration of higher education reserves ($250 million); prepays certain Medicaid obligations ($200-$250 million); funds the Funds for Illinois Futures Grants ($220 million allocated as follows: $120 million safety net hospitals/$100 million member projects); Court of Claims ($7 million); Grocery Store Initiative ($10 million); and medical debt forgiveness ($5 million).
Medicaid Omnibus: The General Assembly approved a comprehensive Medicaid omnibus package on SB 3365 (Aquino/Moeller). A summary of the legislation is here. The legislation passed both chambers unanimously and the measure now heads to the Governor’s desk.
Cannabis: The omnibus cannabis package, SB 3222 (Lightford/Guzzardi), was finalized in the final hours of the Spring Session. The legislation makes six broad categories of changes. It removes a wide range of regulatory barriers, including the requirement for third-party security, expands the canopy space for craft growers, creates enforcement measures against “bad actors”, prohibits financial collusion and bid rigging, and revises the definition of principal officer. The legislation also increases cannabis possession limits to better align with neighboring states. The bill raises the limit from 30 grams to 60 grams of flower, with corresponding increases for infused products and cannabis concentrate.
The omnibus also addresses intoxicating hemp in several ways. First, the bill takes effect immediately to prohibit the sale of intoxicating THC to anyone under 21 and bans deceptive marketing practices aimed at minors. It also allows businesses that sell CBD and hemp-derived CBD products to register with the state, register their products, and continue selling them safely. In addition, the legislation creates new infuser licenses and encourages operators in the hemp space to join the legal, regulated cannabis industry.
The legislation also makes several reforms to the medical cannabis program. It allows medical patients to purchase their medicine at any dispensary in the state, not just designated medical dispensaries. This change will also allow social equity dispensaries to benefit from federal 280E tax treatment changes resulting from the rescheduling of medical cannabis. Changes are being made for social equity transporters by creating a new endorsement for cannabis transfer sites, allowing operators to store cannabis for up to 7 days and effectively establish a warehousing process. The bill also includes a wide range of other regulatory and technical updates. The legislation passed the House 77-31. The Senate concurred 47-10 and it now heads to the Governor’s desk.
Mega Projects/Chicago Bears: A last-minute effort to pass legislation to help the Chicago Bear’s efforts to remain in Illinois fell flat. The House passed a larger mega projects bill earlier in the month, but that measure stalled in the Senate. A late lobbying effort by Chicago Mayor Brandon Johnson, who wants the Bears to stay in the City, further complicated matters. In the final moments of the Spring Session, the Senate offered a much smaller package targeted solely at the stadium efforts, disregarding any other large scale development projects.
HB 958 (Avelar/Cunningham) creates the Municipal Stadium Authority Act. It provides that any home-rule municipality with a population of 70,000 or more residents that is located in a county with a population of more than 3,000,000 residents may establish a municipal stadium authority as a political subdivision and unit of local government for the purpose of financing, acquiring, constructing, or improving any facility or complex of facilities that is used to hold professional sporting events.. It further creates a deduction related to bonds issued under the Municipal Stadium Authority Act. Facilities used for professional sporting events, and related capital improvements, that are owned by or leased to a municipal stadium authority are exempt from property taxation under the proposal. It further requires IDOT to conduct certain traffic studies. The measure passed the Senate 37-17. The House adjourned without taking up the proposal.
Artificial Intelligence: Regulating the use of artificial intelligence captured the attention of the General Assembly this year. The House formed a working group to tackle the complexity of the issue, while the Senate Executive Committee formed a subcommittee and held extensive public hearings to gather stakeholder input. The Governor supported legislation regulating large developers.
Late in the session, the Senate filed a comprehensive 8-bill package to address various aspects of artificial intelligence. The Senate swiftly passed its package to the House. That chamber assigned the bills to the House Executive Committee; ultimately, only two advanced. Representative Gong-Gershowtiz, the leader of the House AI working group, noted the House is still working through the remaining bills.
The General Assembly approved SB 315 (Edly-Allen/Didech), which 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. It further requires companies to undergo annual third-party audits and extends whistleblower protections to employees raising safety concerns. This particular bill was a priority for Governor Pritzker, and he noted he is eager to sign the legislation. The measure passed the House unanimously and now heads to the Governor’s desk. Read more here and here.
The General Assembly also approved SB 318 (Stadelman/Syed), which 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. The bill passed both chambers unanimously. The bill now heads to the Governor’s desk.
The remaining bills in the Senate AI package were assigned to the House Executive Committee, but not considered for a vote prior to adjournment:
SB 316 (Ellman/Gong-Gershowitz) requires AI companies that use companion AI 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 (like the 988 suicide hotline). Also requires the chatbot to notify users that they are speaking to a chatbot and not a human. Further grants the Attorney General enforcement authority and allows for a private right of action.
SB 317 (Ventura/Gong-Gershowitz) requires consumers to be notified at the start of a conversation that they are interacting with an AI chat interface.
SB 340 (Murphy/Rashid) mandates that consumers can opt out of having their data used for ads or sold to third parties. Also, individuals cannot be subjected to algorithmic profiling that could influence major decisions like loan approvals, job screenings, or insurance rates. Medical records would be exempt.
SB 415 (Villa/Gonzalez) allows school districts to use biometric data only for legitimate instructional purposes by the 2027-2028 school year.
SB 416 (Martwick/West) prohibits teachers from using artificial intelligence to assign grades to students’ work. Requires districts to adopt policies on the use of AI.
HB 4248 (Hirschauer/Peters), as amended, creates the Algorithmic Pricing Prohibition Act to ban algorithmic pricing in Illinois — a practice where businesses use personal data to create individualized prices through surveillance systems. The bill fully prohibits algorithmic pricing, defined as “a price for consumer goods or services generated in whole or in part using an automated decision system, machine learning model, or data-driven algorithm.” The bill does not prohibit ordinary sales, discounts, loyalty programs, coupons, or legitimate market-based pricing. Businesses can still adjust their pricing based on supply and demand, transportation costs, promotions, and competition. The Attorney General is authorized to enforce the Act; that office can seek to restrain or enjoin violations through preliminary or emergency injunctions and may seek restitution and a civil penalty of up to $50,000 per violation. The bill passed the Senate as amended, by a vote of 41-16. The measure now heads back to the House for concurrence.
Social Media Protections: HB 5511 (Gong-Gershowitz/Preston) creates the Children’s Social Media Safety Act, establishing new rules for social media platforms, apps, and connected devices when children or teens use them. Key provisions include age verification requirements, special protections for minors, nighttime notification restrictions, and autoplay restrictions. The measure also allows platforms to refuse to service minors and enacts privacy rules for age data. Violations would constitute violations of the Consumer Fraud and Deceptive Business Practices Act, giving the Attorney General the authority to investigate companies for violations of the Act. An initiative of the Governor, the legislation passed the Senate as amended 57-0, and the House concurred 113-0. It now heads to the Governor’s desk.
340B: This complex issue pitted hospitals and other providers against pharmaceutical companies and became the focus of extensive advertising campaigns and vigorous lobbying efforts. As amended, HB 2371 (Moeller/Koehler) addresses the 340B prescription drug issue by creating the Patient Access to Pharmacy Protection Act. It prohibits pharmaceutical manufacturers from restricting 340B covered entities from contracting with 340B pharmacies, including any limitations on the number, location, ownership, or type of pharmacies. Covered entities are required to dispense 340B drugs only in connection with outpatient healthcare services received within the past 18 months. Additionally, the Department of Healthcare and Family Services must conduct a Medicaid impact study on the 340B program. The bill also requires annual reporting to the Legislature, although Federally Qualified Health Centers (FQHCs), safety-net hospitals, and critical access hospitals with fewer than 100 beds, as well as 340B grantees, are exempt from this requirement until January 1, 2029.
Providers argue that protections are needed because drug manufacturers are pulling back on discounted drug offerings. Meanwhile, pharmaceutical companies and employer groups believe that 340B has expanded significantly since its inception in the 1990s, and that state-level protections are unnecessary and should be limited. The measure passed the Senate unanimously, as amended last spring, but had not moved in the House until this week. The House concurred 113-1, and the bill now heads to the Governor’s desk.
HB 4327 (Lilly/Koehler) requires an audit of the 340B program to assess its effectiveness for patients. The measure passed the House 75-37. The Senate passed the bill, as amended, by a vote of 57-0. The House concurred with the Senate’s changes 106-8, and the measure now moves to the Governor’s desk.
Health Data Privacy: Representative Canty, on behalf on the ACLU, filed HFA # 1 to SB 3222 (Lightford), which creates the Protect Health Data Privacy Act, requiring regulated entities to adopt and implement a health data privacy policy and to obtain consent before processing or selling an individual’s health data. It specifies that processing precise location information or health data to provide transportation services by private entities regulated under the Transportation Network Providers Act is strictly necessary. Also, it establishes individual rights related to health data; sets requirements for processors before they handle health data; permits reasonable identity-verification measures when a person requests confirmation or deletion of health data; restricts access to health data; prohibits certain geofencing practices; limits government and law enforcement access to personal health information; creates a private right of action; authorizes enforcement by the Attorney General; and addresses conflicts of law and exemptions. The bill also amends the Consumer Fraud and Deceptive Business Practices Act, making it unlawful to violate certain provisions of the Protect Health Data Privacy Act.
The amendment passed the House Executive Committee 8 – 4. The committee asked the sponsor to continue working on the issue and bring it back for further consideration. On the last night of the session, Representative Guzzardi filed HFA #2, which gutted the bill and it became the vehicle for omnibus cannabis package. Representative Canty then quickly refiled the language on SB 93 (Preston/Canty). That amendment was not considered prior to adjournment.
Energy Omnibus: HB 1700 (Williams/Stadleman), as amended, is a trailer bill to the Clean and Reliable Grid Affordability Act passed last fall. The bill makes several changes, including addressing concerns raised by environmental advocates and industry stakeholders by capping energy rebates — a change expected to save ratepayers hundreds of millions of dollars. The legislation also closes a loophole by requiring large renewable projects that receive high-impact business tax credits to meet the same major project labor standards as other large renewable projects. In addition, the bill clarifies that data shared with aggregators under the virtual power plant program must be anonymized to protect individual households’ utility information. The legislation extends geothermal prevailing wage requirements to multifamily homes. The provisions of the legislation were all agreed upon with stakeholders. The bill passed the Senate, as amended, 36-20. The House concurred 75-39, and the bill now heads to the Governor’s desk.
Affordable Housing: Governor Pritzker prioritized affordable housing this session. His Building Up Illinois Developments – BUILD – proposal creates a statewide zoning law that drastically limits local governments’ authority to control which types of housing can be built on land zoned for residential use. It relaxes restrictions on the development of multi-unit housing, allowing homeowners to build “granny flats” and cuts other forms of red tape that have slowed homebuilding. Both chambers held extensive subject matter hearings on the proposals.
Last week, the Senate filed its own housing package, incorporating some of the Governor’s BUILD proposals (with some modifications) and adding legislation to address affordability. Capitol News Illinois takes a closer look at the Senate proposals here. The Senate made a last-minute effort to amend some of its proposals onto House Bills the last night of session. Those bills passed the Senate, but were not called in the House prior to adjournment. Those bills are:
· HB 4377 (West/Guzman) creates the Federally Assisted Tenant Protection Act, prohibiting most landlords and housing authorities receiving federal housing assistance money from imposing mandatory work requirements or time limits on tenants receiving subsidized housing in Illinois. The measure also shifts the cost of leasing broker or leasing agent fees from the renter to the landlord and expands anti-discrimination protections for victims of gender-based violence by making it illegal in certain housing and lending situations to discriminate against someone because they are a survivor of gender-based violence. Passed the Senate 35-19.
· HB 957 (Mayfield/Simmons) creates a tenant’s right of first refusal, giving tenants the first opportunity to purchase their building before an owner can sell it to someone else. Passed the Senate 37-20.
· HB 2783 (B. Hernandez/Ventura) creates the Restock the Block Act to limit large institutional investors from buying significant numbers of residential homes and imposes fees on large investors, with the proceeds being allocated to affordable housing. Passed the Senate 35-19.
While the Governor’s BUILD package and the Senate’s affordable housing packages stalled, the General Assembly did approve one housing affordability measure, HB 4571 (Deuter/Ellman), which allows counties to use land, money, infrastructure, and legal agreements to encourage housing development at prices below market rate. Specifically, the legislation allows counties to buy land for affordable housing, transfer government-owned land for housing projects, sell or lease land below market value, use affordable housing powers already allowed under state law, choose developers or buyers directly, offer incentives to developers, clean up or remediate property, and impose affordability restrictions. Passed the Senate 44-14 and now heads to the Governor’s desk.
Data Centers: Both chambers held extensive subject-matter hearings on data centers and their effects on energy use and the environment. Governor Pritzker also called for a pause in data center tax credits. The legislature took no action on these issues before adjournment.
Prescription Drug Advisory Board: A second attempt to create a Prescription Drug Advisory Board advanced this week out of the House on SB 3496 (Harmon/Syed), as amended, but was not considered by the Senate prior to adjournment. The Board is authorized to set maximum, state-regulated price limits on certain drugs. The bill allows the state’s Medicaid program and State Employees Health Programs to “opt in,” limits the number of medications subject to upper payment limits, and places a 5-year sunset on the statute. Passed the House 62-39 and now heads back to the Senate for concurrence.
Insurance Reforms: The Illinois House approved auto and homeowners’ insurance reforms, sending them to the Governor’s desk.
SB 714 (Villivalam/Jones) 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. The House concurred with SFA # 1 by a vote of 70-38-1, and the bill now heads to the Governor’s desk.
HB 4273 (Jones/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. The House concurred with SFA # 1 by a vote of 72-38, and the bill now heads to the Governor’s desk.
Labor: SB 3393 (Hastings/Hoffman) represents the labor omnibus. The bill passed the House 86-30 -1, and heads to the Senate for concurrence. The bill, as amended, creates a state mediation services program to replace the federal program and apply prevailing wage requirements to large projects, if they’re funded through the sale or transfer of tax credits from affordable housing donations. Exemptions apply to projects with 12 or fewer housing units and to nonprofit developer projects under 50 units. The legislation requires IDOT to inform bidders of locally applicable project labor agreements and requires the Illinois Power Agency to create a searchable public portal for Renewable Energy Credit projects, while protecting proprietary and confidential information. It would also require the Department of Commerce and Economic Opportunity to have scoring criteria for federally funded broadband projects to show whether meaningful levels of labor hours were performed by apprentices and to comply with the Illinois Works Apprenticeship Program. In addition, the Prevailing Wage Act would include fire sprinkler inspectors and installers, as well as workers who service HVAC systems in public buildings. It excludes licensed professional engineers, codifying current practice; removes the seller-supplier exemption for prevailing wage coverage related to maintenance of construction equipment; requires workers employed in two different prevailing wage classifications on the same public works project to be paid the higher rate; directs contractors to submit records of participation in apprenticeship programs to the Illinois Department of Labor; and exempts barge workers from the requirement to receive five days of paid leave each year. Critics argue portions of the bill apply to pending litigation against Altorfer in Peoria with the intent to impact the outcome of that litigation.
Unemployment Insurance: SB 807 (Holmes/Hoffman) moves the unemployment insurance “speed bumps.” Failure to move the dates would result in a $550 million tax increase for employers at the end of this year, and employees would see a $550 million reduction in benefits. The bill also addresses layoff-related issues that prevented some John Deere workers from receiving unemployment benefits. Under this provision, if an employer has 75 or more employees in the state and lays off at least 50 employees at a single location, the employer must provide the names, Social Security numbers, separation dates, and, when applicable, return-to-work dates of those employees. The legislation is supported by both business and labor. The bill passed both chambers unanimously, and it now moves to the Governor’s desk.
Workers’ Compensation: HB 5228 (Hoffman/Cunningham), as amended, makes several changes to the state’s workers’ compensation law to better protect injured workers and address system gaps. It allows the director of the Workers’ Compensation Commission Operations Fund to increase the fee schedule for workers’ compensation insurance policies (based on an insurer’s underwriting gain), and it raises the standard workers’ compensation death benefit to $10,000 (had been $8,000). Also, private self-insured employers must maintain proof of insurance or face fines. The sponsor testified that the most significant changes focus on reducing treatment delays for injured workers — as requested by the Illinois Medical Society. These provisions require a medical specialist to evaluate denied treatment following utilization review; allow utilization certificates to remain valid for up to three months for ongoing treatment; and impose a 90-day deadline for an independent medical exam requested by an employer. The bill also clarifies that the 90-day period begins when the employer receives the worker’s medical records. Passed the Senate 39-19, and the House concurred 89-27, and the bill now heads to the Governor’s desk.
Property Tax Sales: HB 4537 (Tarver/Villanueva), as amended, is Illinois’ response to the Supreme Court’s Tyler v Hennepin property tax sales reform decision. Among other changes, the bill:
· Extends the tax redemption period from 2.5 to 3 years for owner-occupied residential properties.
· Enables Cook County and other counties, if they choose, to conduct annual tax sales in which the county is the only registered buyer after 6 tax sales.
· Decreases the county interest rate to 0.75% per month for tax certificates or 9% annually.
· Creates a surplus equity fund for compliance with the Tyler v. Hennepin decision, and separates out the surplus equity fund from the indemnity fund
· Raises the indemnity fee to $500 and establishes a new surplus equity fee of 5 percent of the tax certificate (capped at $1,000) for Cook County.
· Streamlines notice requirements.
· Modifies Sales and Error to create a new category to address the outstanding Tyler certificates.
· Updates the County Collector’s ability to issue an administrative sale in error
· Leaves existing trustee programs intact for counties outside of Cook County
The bill passed the Senate 56-1-1. The House concurred by a vote of 80-35, and the bill now moves to the Governor’s desk. Read more here.
Oil and Gas Wells: The General Assembly approved legislation — SB 3113 (Koehler/Hoffman) — to strengthen enforcement and cleanup requirements for oil and gas wells in Illinois, especially leaking or improperly plugged wells. Prompting the measure was a recent report from Northwestern University on the state’s abandoned oil and gas wells. The legislation allows the Department of Natural Resources to charge a vacuum permit application fee of up to $300 and raises civil penalties for certain violations (from $1,000 to as much as $4,000 per day). Annual temporary abandonment fees will be deposited into the Plugging and Restoration Fund, with half directed to the Landowner Grant Program. Violations lasting 90 to 180 days may be fined up to $2,000 per day, while those lasting more than 180 days may draw penalties of up to $4,000 per day. Any penalty amount above $1,000 will also go to the Plugging and Restoration Fund. Before assessing penalties, the Department must notify the permittee, who may claim extraordinary circumstances that could delay enforcement. The bill passed the House as amended by a vote of 112-2. The Senate concurred 50-6. The bill now moves to the Governor’s desk.
Environmental Justice: SB 3772 (Villanueva/Jimenez) strengthens environmental justice protections by requiring state regulators to consider the effects of pollution-control permits on communities that have long faced disproportionate environmental burdens. The bill requires the Illinois Environmental Protection Agency to evaluate environmental justice factors when reviewing certain air construction permit applications and to determine whether a proposed facility is located in an area of environmental justice concern. If so, the agency may identify emissions-reduction opportunities, conduct additional air-quality modeling, and recommend permit conditions such as enhanced air or odor monitoring and other pollution-prevention measures. Permit decisions must also consider the applicant’s history of environmental violations and other relevant factors. The legislation largely codifies existing EPA policy. The measure passed the House 73-39 and now heads to the Governor’s desk.
Credit Card Chaos: For the second year in a row, lawmakers postponed by one year the implementation of the first-in-the-nation Interchange Fee Prohibition Act. Implementation, initially scheduled for July 1, 2025, was also pushed back last year. The banking industry mounted a fierce campaign to repeal the legislation this year, funding billboards, a digital and TV campaign, and full-page newspaper ads calling for an end to the “credit card chaos.” Despite their efforts to repeal the law entirely, legislators agreed only to another one-year implementation delay. The law remains the subject of a court case.
Capitol News Illinois covered the issue here. Please note that since the original article was published, two federal agencies have intervened, clarifying National Banking Act powers and preempting nationally chartered banks and credit unions from the Illinois law. The case has been sent back to a federal district judge who already partially sided with the retailers and the state in an earlier ruling. The measure was included in the omnibus sunset extension, SB 3645 (Porfirio/Morgan). The bill passed the House 111-0-1, and the Senate concurred 51-3 and the bill now heads to the Governor’s desk.
Cell Phone Ban in Schools: The Illinois Senate approved SB 2427 (Castro/Mussman), which requires school boards to adopt a policy prohibiting students from using wireless communication devices. This includes cell phones, computers, and smartwatches, but excludes school-issued or required educational devices. The policy must allow exceptions for medical reasons, IEPs, 504 plans, English learners, educational purposes approved by school personnel, and emergencies. The bill was a priority of Governor Pritzker. The bill passed the House in April 102-3-1, and the Senate concurred with the House amendment 55-2. The bill now heads to the Governor’s desk.
Rideshare Unionization: HB 5090 (Morris/Villivalam) establishes the right of drivers for rideshare companies to collectively bargain, allowing them to unionize and negotiate pay, working conditions, and deactivations. The legislation passed the Senate, as amended, by a vote of 42-12-1. The House concurred 83-28, and the bill now moves to the Governor’s desk.
FOIA: Two FOIA items were discussed during the last week of the session. The House approved SB 2715 (Porfirio/Didech), which represents a FOIA omnibus addressing the privacy of certain K – 12 records and law enforcement investigations, among other matters. The bill passed the House unanimously. The measure now heads to the Senate for concurrence.
SB 1796 (Morrison/Slaughter) addresses the excessive volume of FOIA requests for police-worn body camera footage and the practice of social media producers requesting it and then publishing it online for profit. The law enforcement community was split on whether they believe the current language will truly solve the problem. The bill passed the House Executive Committee 8-4 but was not called for a final vote prior to adjournment.
Downtown Springfield Revitalization: The Illinois Senate approved HB 4496 (D. Turner/Hoffman), as amended, representing a downtown Springfield redevelopment package. The legislation creates the Capital Area Tourism Authority to finance the development of a new convention center and hotel, as well as expand the existing Bank of Springfield Convention Center. It would establish a new political subdivision in the downtown area with economic development powers to support these projects, including the creation of a Capital Area Tourism District and the issuance of revenue bonds. Those bonds would be backed by pledged revenue from county, city, and state sources, including a countywide hotel tax, local sales taxes generated within the district, and state sales tax increment. The bill also creates the Capital City Downtown Medical District to replace the Mid-Illinois Medical District. It broadens the district’s mission beyond health care facilities to include research, innovation, and housing, with the goal of promoting economic development and revitalizing downtown Springfield. It also expands the district’s boundaries to cover more of the downtown area. Finally, the legislation establishes two tax incentives for the City of Springfield: a Capital City construction jobs income tax credit worth 50 to 75 percent of incremental income, and a historic building rehabilitation tax credit of up to 25 percent of qualified expenditures. This issue was included in the mega projects legislation that passed the House but was returned to a stand-alone bill this week when the mega projects legislation stalled. Passed the Senate 38-19 and now heads to the House for consideration.
Election Omnibus: Omnibus election legislation emerged as amendments to HB 1832 (Smith/Cunningham) the night before adjournment. The package makes numerous changes to election law. Highlights include, imposing new disclosure requirements on AI generated political ads; allowing election authorities to start counting vote-by-mail ballots seven days before the election (although results could not be released until the polls close); creating a statewide tracking system allowing voters to monitor their ballots and learn if they were accepted or rejected; allowing counties to develop universal vote centers starting in 2027; establishing contingency provisions regarding when vote-by-mail ballots mailed and counted depending on the outcoming of the pending US Supreme Court case; enacting a fix for the CTU regarding petition circulation. The legislation was not acted upon prior to adjournment.
Abortion Access Grants: Governor Pritzker proposed creating a state grant program to cover abortion care for uninsured or underinsured individuals. Under the Affordable Care Act, insurers that cover abortions beyond the limited exceptions permitted under the federal Hyde Amendment must collect at least $1 per member each month. Those funds may be used only for abortion services, leaving many insurers with large unused balances. Under Pritzker’s proposal, insurers offering plans on the state exchange would be required to report annually to the Illinois Department of Insurance the amounts held in these separate accounts and spent during the year, and then remit 90% of any remaining funds to a state-controlled abortion access fund. HB 5408 (Moeller/Edly-Allen) passed the House 69-36 but was never assigned to a standing committee in the Senate.
Community College Bachelor’s Program: Governor Pritzker also asked legislators to approve his plan to authorize Illinois community colleges to offer four-year bachelor’s degrees in high-demand fields. The proposal, HB 5319 (Katz Muhl) passed the House Executive Committee unanimously, but was never called for a vote on the House Floor.
Equitable University Funding: Another push to enact equitable public university funding stalled this week. Senator Lightford filed SFA #1 to SB 13 during the final week of the session; it was assigned to the Senate Executive Committee but not considered before adjournment.
Passed Both Houses: The following bills passed both houses and now head to the Governor’s desk.
HB 2335 (Delgado/Villivalam) makes technical changes to further streamline and clarify the Northern Illinois Transit Authority Act ahead of its June 1st effective date. Passed the Senate 36-16, and the House concurred 74-39.
SB 3114 (Koehler/Chung) bans insurers from using algorithms or automated tools to unilaterally downgrade a medical billing code (downcoding) without human review. Passed the House unanimously.
HB 862 (Morgan/Morrison) is a government efficiency and consolidation measure that makes several changes, including consolidating the Department of Human Rights and the Human Rights Commission and making the Guardianship and Advocacy its own state Agency. Passed the Senate as amended by a vote of 49-8, and the House concurred 77-36.
SB 3645 (Porfirio/Morgan) represents the annual sunset extension bill. Passed the House 111-0-1, the Senate concurred 51-3.
HB 5024 (Welch/Lightford) limits where the federal government can establish immigrant detection centers. Passed the Senate 39-17.
SB 2968 (Johnson/Mayfield) allows the State Treasurer to establish a Non-profit Investment Pool and an electronic payment processing program to enhance investment opportunities and provide secure payment options for eligible Illinois not-for-profit corporations. Passed the House 75-36-1.
HB 2955 (Rashid/Villivalam) creates the PFAS and Microplastics Wastewater Citizen Protection Act. It establishes a committee to develop a comprehensive action plan for monitoring and eliminating these “forever chemicals” while shifting the financial burden of remediation from wastewater agencies and taxpayers to the chemical manufacturers. Passed the Senate unanimously, as amended, and the House concurred 78-39.
HB 4160 (Katz Muhl/Morrison) requires auto insurance policies in the state to include a “right-to-appraisal” clause. This protects consumers by creating a standardized, formal process for resolving claim valuation disputes with insurance companies. Passed the Senate 56-2 as amended, and the House concurred unanimously.
HB 5196 (Morgan/Martwick) authorizes $1 billion in state pension obligation acceleration bonds and extends the COLA Buyout Program for an additional two years (through June 30, 2028). Under the buyout, participants in the State Employees’ Retirement System, State Universities Retirement System, or the Teachers’ Retirement System may voluntarily receive a lump-sum payment in exchange for forgoing future 3% compounded cost-of-living adjustments or a pension buy-out for members with a vested pension but are no longer active members of SERS, SURS or TRS. Passed the Senate unanimously.
SB 2909 (Belt/Canty) regulates the use of AI in teacher evaluations, emphasizing that human judgment must remain central to assessing teacher performance. The bill prohibits the use of AI in performance ratings and allows evaluators to use AI solely for administrative support purposes. Meanwhile, teachers are not allowed to use AI as evidence in their performance evaluations and must disclose its use if they employ it for administrative purposes in their evaluations. Passed the House unanimously.
HB 1441 (L. Hernandez/Porfirio) represents an omnibus TIF extension bill, extending 15 TIFS for the following communities: City of Spring Valley, the City of Mt. Vernon, the City of Centralia, the City of Paris, the Village of Bedford Park, the Village of Summit, the Village of Lisle, the Village of Hoffman Estates, the Village of Mokena, the Village of Seneca, the Village of South Holland, the Town of Cicero, and the City of Lacon. Passed the Senate as amended, 52-3, and the House concurred 90-21-1.
HB 5492 (Stuart/Collins), as amended, requires insurance coverage for a 6-month supply of prescription hormone therapy (currently at 30- to 90-days). Passed the Senate as amended 38-19, and the House concurred 75-39.
HB 5387 (Morgan/Glowiak-Hilton) represents the IDFPR sunset bill. Passed both chambers unanimously.
SB 3484 (Villivalam/B. Hernandez) addresses micromobility, defining devices, preserving the current electric bike framework, bringing high-powered vehicles in line with motor vehicles (titles, registration, insurance, and drivers’ licenses), and applying DUI laws. It further prevents manufacturers from engaging in deceptive marketing. Passed the House as amended 84-16, the Senate concurred 48-7. Read more here.
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 as amended 35-19, and the House concurred 75-40.
SB 3341 (Guzman/Avelar) provides that any minor may give effective consent for contraceptive services or supplies, and the consent of no other person is required. The Passed the House 73-38.
SB 3211(Hastings/Rita) expands and regulates the use of teledentistry to improve access to oral healthcare. The bill sets safety parameters for remote dental care while protecting patients. Passed the House 116-0-1.
SB 3465 (Guzman/Mah) requires employers of construction sites to supply menstrual hygiene products and provide reasonable lactation accommodations for workers expressing breast milk. It also mandates separate, secure, and designated toilet facilities for women and individuals who menstruate. Passed the House as amended 71-37 and the Senate concurred 45-13.
SB 3449 (Cunningham/Spain) is a trailer bill to the mobile driver’s license bill. Passed the House unanimously.
SB 3777 (Johnson/Slaughter) codifies the use of disparate impact standards under the Illinois Human Rights Act, ensuring that policies that appear neutral on their face but disproportionately harm protected communities can still be challenged under state law. The sponsor believes the measure would reinforce Illinois’ authority to provide stronger protections than the federal minimum by safeguarding residents from systemic discrimination in employment, housing, education, financial credit, and public accommodations. Republicans objected, saying the bill does not “codify” and instead sets a new standard in Illinois. Passed the House 72-38.
HB 3409 (Harper/Hunter) creates the Chemicals in Cosmetic Products Act. It bans the manufacture, sale, and distribution of cosmetic products containing intentionally added harmful chemicals—including PFAS “forever chemicals,” various parabens, formaldehyde-releasing agents, and mercury—to align the state with stricter European Union beauty standards. The House concurred 74-38.
HB 5284 (Morris/Lightford) creates the Menopause Equity and Care Act, aimed to improve menopause and perimenopause care by creating public education programs, mandating workplace accommodations, and requiring future insurance coverage. The House concurred 78-33.
HB 4762 (Mah/Belt) reduces professional regulatory restrictions. Removes mandated licensure, renewal, and restoration requirements for personal service workers, such as barbers, cosmetologists, estheticians, hair braiders, and nail technologists. Requires the Department of Financial and Professional Regulation to classify disciplinary records as confidential and automatically remove final disciplinary actions from public view after five years. Prohibits the department from automatically holding, delaying, or denying license applications simply because the applicant is incarcerated. Allows the Department to seal disciplinary history after 5 years. This is an initiative of IDFPR. The House concurred 74-35.
HB 5107 (Syed/Hastings) would require 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. The House concurred unanimously.
HB 3811 (Deuter/Halpin) regulates private professional guardians for adults with disabilities. Passed both chambers unanimously.
HB 5000 (Gong-Gershowitz/Guzman) expands the state’s healthcare transaction reporting laws and requires private equity firms and controlling parent companies to provide advance notice to the Illinois Attorney General before acquiring or restructuring healthcare facilities. The House concurred unanimously with the Senate’s changes.
SB 3273 (Cunningham/Hoffman) is the solar to schools initiative. Passed both chambers unanimously.
HB 5295 (Canty/Villanueva) creates the Reproductive Health Records Privacy Act, safeguarding abortion-related and gender-affirming medical data from out-of-state disclosure. The bill works to prevent electronic networks from sharing protected health information with entities outside the state without explicit patient consent. Passed the Senate 38-19. The House concurred 73-39.
HB 4953 (Deuter/Ellman) updates Illinois’ Wholesale Drug Distribution Licensing Act to allow prescription drugs (that are not controlled substances) to be delivered to additional authorized health care locations, provided that the licensee approving the delivery location notifies the Illinois Department of Financial and Professional Regulation. Passed Senate 59-0.
HB 4304 (Stuart/Halpin) protects the constitutional rights of students in higher education institutions and enumerates further academic rights including the right to an inclusive and safe learning environment, accessibility, free expression and academic access, freedom of association and organization, peaceful protest, academic transparency, fair evaluation, educational records, protection of academic programs from political interference, career preparation, educational quality, due process, institutional accountability, financial transparency, refunds and withdrawals and right to transfer. Passed the Senate 37-19.
SB 3398 (Halpin/Hoffman) requires health care providers to release a patient’s medical records in response to a written request from a designated surrogate or any person, entity, or organization with valid authorization. If a patient is determined to lack decisional capacity and a health care surrogate has been identified, the facility must provide the surrogate with specified written information, which may be delivered electronically. A provider that follows the surrogate’s directions with due care and in compliance with the Act is protected from claims of unprofessional conduct based on lack of patient authorization. Passed both chambers unanimously.
HB 4418 (Mason/Morrison) requires the Illinois Environmental Protection Agency to develop and implement stormwater pollution prevention requirements regarding plastic pellet runoff from industrial facilities regulated under federal EPA standards. Passed the Senate 44-13.
HB 5081 (Hanson/Porfirio) allows communities to lower their speed limits on IDOT roads from 30 mph to 25 mph without a speed study if certain conditions are met. The legislation also sets clear transparency standards that municipalities must uphold, including requiring that any revenue from speed cameras be spent on public safety, infrastructure, and community programs. Passed the House 116-1.
Other Legislative News: Republican Senator Dale Fowler announced that he will retire after the 2026 Spring Legislative Session. Fowler was not running for reelection. Local Republicans will have 30 days from Fowler’s retirement to select his replacement. While no official replacement has been announced, State Representative Paul Jacobs is running to replace Fowler and is considered a leading Republican contender to fill his seat.
Looking Ahead: Legislators will now turn their attention to the campaign trail. All Constitutional offices are up for election, as well as one US Senate seat and all 17 Congressional seats. Of the state’s 59 Senate seats, 37 are up for election, and the same is true for all 118 House seats. Tuesday, November 3, 2026, is the General Election.
GOVERNOR’S HIGHLIGHTS:
Tourism Grants: The Illinois Department of Commerce and Economic Opportunity (DCEO) has announced $5 million in tourism funding through three grant programs: the Route 66 Grant Program ($2 million) for promoting and preserving the historic Route 66; the International Tourism Grant Program ($1 million) for attracting international visitors; and the Tourism Marketing Partnership Grant Program ($2 million) for developing attractions and events. Eligible entities can apply for these grants through a competitive process. Read more here.
ICC Approves Settlements: The Illinois Commerce Commission approved settlements that provide relief to Peoples Gas and North Shore Gas customers on their natural gas bills over the next three years. The settlements resolve all contested issues in Peoples’ pending Qualifying Infrastructure Plant (QIP) cases and reconcile costs related to both utilities’ Uncollectible Expense Adjustment (UEA) riders. Read more here.
IHDA Releases Biannual Report: The Illinois Housing Development Authority released its 2024 – 2025 Biennial Report, which outlines the agency’s investments and impact across Illinois. Read more here.
OTHER NEWS:
Governor’s Race: Saying he hopes to bring a more balanced voice to the Governor’s race, former Republican strategist Collin Corbett filed petitions this week to run as an Independent for Governor. Joining him as his Lt. Governor running mate is Carolyn Schofield. Read more here.
AG Reaches Settlement with EpiPen Manufacturer: Attorney General Kwame Raoul announced an $8.25 million settlement with Mylan Inc., addressing concerns over the company’s anticompetitive practices related to EpiPen products. The settlement resolves issues that led to Illinois overpaying for EpiPens through Medicaid and employee health programs; most of the recovered funds will go to the Department of Healthcare and Family Services and the Department of Central Management Services. An investigation revealed that Mylan engaged in various anticompetitive tactics, such as raising prices, delaying generics, forcing consumers to buy EpiPens in two-packs, and having misleading advertising. As part of the settlement, Mylan will also increase its copay coupon for the authorized generic EpiPen from $25 to $40, benefiting consumers by lowering their out-of-pocket costs. Read more here.