March 8, 2026 Update

The Illinois Senate adjourned last Thursday for the week. Senators will return to session Tuesday, March 10 – Thursday, March 13. The House is off again next week ahead of the March 17 Primary Election, gathering in Springfield again Wednesday, March 18 – Friday, March 20.

Note, Friday, March 13 is the deadline to pass substantive bills out of Senate committees; two weeks later, March 27, marks the House committee deadline.

A list of Senate Committee hearings for next week is here (scroll and click “week” to view the full list).

The Senate primarily spent the week contemplating legislation at the committee level. Highlights are below:

The Senate Insurance Committee held a subject matter hearing on SB 3114 (Koehler), which would prohibit health insurance companies from using artificial intelligence to code a health service lower than what is actually provided to patients. The measure requires doctors to make all downcoding decisions, and insurance companies must notify providers if a service has been downcoded. SB 3114 would also ban insurers from downcoding in a discriminatory manner against doctors who routinely treat patients with complex health conditions. The bill is an initiative of the Illinois State Medical Society. The Illinois Life and Health Insurance Council testified in opposition, arguing that downcoding is beneficial when it corrects unsupported and inaccurate coding. No vote was taken on the bill this week.

The Senate Insurance Committee unanimously approved SB 3815, which prohibits health insurance companies from denying new coverage to individuals or employers solely because they owe premiums from a previous policy. The measure allows insurers to continue to pursue collection of unpaid balances but ensures that outstanding debt does not act as a barrier to accessing care. The legislation also aims to restore consumer protections at the state level by ensuring Illinoisans can obtain new coverage without first resolving prior debt, while still holding individuals accountable for unpaid premiums through standard collection processes. The measure does not apply to grandfathered health plans, those established prior to the Affordable Care Act’s enactment in 2010, which are exempt from certain federal requirements and are no longer available for purchase. SB 3815 now heads to the full Senate for consideration.

SB 3029 (Hastings) aims to protect Illinois homeowners from deceptive and high-pressure contractor practices that often follow severe weather and natural disasters. Specifically, the bill prohibits a contractor from offering home repair or remodeling services: while a loss-producing event – like a fire or storm – is occurring at the premises; while the fire department or emergency personnel are engaged at the premises; or between the hours of 7 p.m. and 8 a.m. Consumers, however, could still initiate solicitation with contractors during these scenarios. In addition — unless the consumer initiates the solicitation — the bill prohibits a contractor from soliciting an in-person contract for home repair or remodeling services within 72 hours after a disaster proclamation is issued. SB 3029 passed the Senate Insurance Committee by a vote of 9-0 and now heads to the full Senate.

The Senate Education Committee unanimously approved SB 2909 (Belt) which bans the use of AI tools in teacher evaluations. The full Senate now considers the bill.

SB 3698 (Guzman) proposes to decouple Illinois adult education funding from federal rules and clarify and strengthen the administration of state-funded adult education programs in Illinois. The bill would ensure that Illinois law, not the federal Workforce Innovation and Opportunity Act, governs state-only adult education programs. The state’s matching portion of WIOA funds – currently 25% – would continue to be subject to federal requirements. Under the proposal, community colleges and educational institutions could use funding for additional purposes, including digital literacy education, and would further update eligibility for community college adult education programs to students aged 17 and up. SB 3698 passed the Senate Higher Education Committee by a vote of 12 – 1 and now heads to the full Senate.

SB 3917 (Fine) outlines requirements for National Pollutant Discharge Elimination System (NPDES) permits regarding perfluoroalkyl and polyfluoroalkyl substances (PFAS). The legislation mandates that major facilities must conduct periodic sampling of influent, effluent, and biosolids, while other facilities must sample effluent for accredited PFAS analytical methods. Permit applications for wastewater discharges with potential PFAS content must include comprehensive sampling data and permits for land application of sludge or biosolids cannot be issued without PFAS sampling results and must require regular monitoring of these substances. SB 3917 passed the Senate Environment and Conservation Committee by a vote of 9-1 and now heads to the full Senate.

Senate Republicans announced changes to the caucus’s leadership team following Senator Neil Anderson’s resignation from leadership last month. Senator Jason Plummer will serve as caucus chair, a position previously held by Senator Anderson. Senator Sally Turner will serve as an assistant Republican leader. Senator Chapin Rose will serve as Minority Caucus Whip, stepping into the role previously occupied by Senator Turner.

Key 2026 Session Dates:

March 13: Deadline — Substantive Senate Bills out of Committee

March 27: Deadline — Substantive House Bills out of Committee

March 17: Primary Election

April 17: Deadline — 3rd Reading Substantive Bills in First Chamber

May 8: Deadline — Substantive Bills out of Committee in Second Chamber

May 22: Deadline — 3rd Reading Substantive Bills in Second Chamber

May 31: Adjournment

GOVERNOR’S HIGHLIGHTS:

Grants Available for Efficiency Upgrades at Public Water Supply Facilities: The Illinois Environmental Protection Agency’s Office of Energy is offering $1.5 million in grant funding for energy efficiency projects at publicly owned drinking water treatment plants. Grants will range from $50,000 to $500,000, with a matching requirement of 10-20% based on location. Eligible projects must follow recommendations from a third-party energy efficiency assessment and can include upgrades to pump and motor equipment, variable frequency drives, energy demand management, HVAC, and lighting improvements. The application period closes at 5:00 pm on May 4, 2026, and application materials can be found on the Illinois EPA Office of Energy’s webpage. Read more here.

Changes to WIC Program: As of February 25, Illinois’ WIC program began offering more culturally responsive foods and flexible options. For example, families can select from new package sizes and adjusted food quantities as well as such products like corn masa flour, whole wheat English muffins, and sardines – all aimed at better matching current nutrition science and dietary needs. More info here.

$1.5 Billion in Medical Debt Erased for Cook County Residents: Cook County Board President Toni Preckwinkle and Governor JB Pritzker announced that, with help from Undue Medical Debt, over $1.5 billion in medical debt owed by Cook County residents has been eliminated. The County plans to continue this effort after ARPA funds end in 2026 to support ongoing health equity and economic stability. Read more here.

Internationally Trained Physicians: The first license under a new licensure pathway for international medical graduates (IMGs) to practice medicine in the state has been issued by the Illinois Department of Financial and Professional Regulation. Under this new approach, IMGs can work under supervision in approved institutions for two years. Following that, they can apply for an International Medical Graduate Restricted License, enabling them to practice more independently in areas with healthcare shortages. Upon completion of another two years of practice under this restricted license, IMGs can then apply for a full medical license in Illinois. Read more here.

CORE Licensing System Expansion: Eight new license categories have been added to the Illinois Department of Financial and Professional Regulation’s CORE licensing system. The recent update covers professions related to combat athletic events, including boxing and full-contact martial arts. Read more here.

OTHER NEWS:

Moody’s State of Illinois Economic Forecast: Moody’s prepared its annual State of Illinois Economic Forecast for the Commission on Government Forecasting and Accountability. 

According to the report, Illinois’ economy experienced a downturn in the latter half of 2025, with trade policy changes disproportionately impacting manufacturing-dependent regions. Job and income growth rates remain below the Midwestern average, and the scope of job creation across sectors has become increasingly limited, mirroring national trends. Within Illinois, employment growth has been observed year-over-year in healthcare, financial services, information, transportation and warehousing, construction, and government sectors. Conversely, continued underperformances were noted in retail, manufacturing, and professional/business services.

Over the most recent three-month period for which data is available, Illinois’ unemployment rate averaged 4.5%, compared to 4.2% in the Midwest and 4.4% nationally. The decline in the state’s unemployment rate is largely attributable to a reduced labor force rather than increased job creation, as household employment has stagnated. Looking ahead, forecasts indicate that in the coming year, Illinois’ economic performance will lag behind both the Midwest and the broader United States. And while employment levels are expected to remain stable from the fourth quarter of 2025 to the fourth quarter of 2026, gross state product and income are projected to grow at a slower pace than in other regions. Although the negative effects of higher tariffs may ease somewhat, lingering uncertainty regarding trade policy will continue to impede growth, particularly in states like Illinois. Over the long term, the Moody’s report notes, Illinois is anticipated to trail the Midwestern average and fall further behind national benchmarks in job and income growth. Below-average population trends and persistent fiscal challenges, including rising pension liabilities and a decreasing tax base — pose significant obstacles to robust economic performance. Continued out-migration will further constrain employment and income growth prospects. Read the full report here.

CGFA February Report: In February 2026, General Funds revenues rebounded from a decline in January, increasing by $298 million (9.0%) to a total of $1.337 billion for the fiscal year; this reflects a 4.1% increase year-over-year. Personal Tax Receipts primarily drove the growth, marking a 7.6% uptick ($150 million).  This particular source has shown growth in six of the last seven months due to continued wage growth.

Corporate Income Tax receipts fell by $23 million for the month, marking the fifth consecutive month of decline; the Commission notes that recent federal tax law changes are most likely responsible. And while Sales Tax revenues remained flat, the category of All Other State Sources experienced strong growth, led by a $60 million increase in Insurance Taxes and Fee.

Another strong performer – marking an increase of $38 million (28.1%) — was the category of Transfers-In, primarily due to Sports Wagering Transfers. Federal Sources saw a $30 million increase but will need to perform much better in the remaining months to meet annual estimates. Read the full report here.

Site Selection Rankings Announced: Site Selection Magazine has ranked Illinois second place for corporate expansion and relocations for four years running, while Chicago claimed the top metro spot for the 13th straight year. The state also kept its number two ranking for projects per capita for three consecutive years. Corporate real estate analysts view Site Selection’s annual reports as the leading industry benchmark. To qualify, projects must meet at least one of these criteria: an investment of $1 million or more, the creation of 20 or more new jobs, or the addition of at least 20,000 square feet of new space. More here.

Task Force on Black Immigrants Issues Report: The Task Force on Black Immigrants has submitted its report to the General Assembly. (The Illinois Department of Human Rights houses the Task Force, which was created in response to a House Joint Resolution.)  Providing an analysis of the state’s nearly 85,000 Black immigrants, the report offers recommendations in seven areas: language access, culturally competent services, healthcare and mental health, affordable housing, law enforcement, inclusion and intersectional identity, and data collection. The full report is here.  Read more here.

Coalition Opposes Federal Rule Limiting Health Care Student Loans: Attorney General Raoul, together with a coalition of states’ Attorneys General, has opposed a proposed rule by the U.S. Department of Education that would limit federal student loans for graduate students in health fields like nursing and physician assistants. The recent federal budget reconciliation caps federal loans for graduate students at $20,500 per year and $100,000 total, while allowing students in certain “professional” degrees to borrow up to $50,000 annually and $200,000 in total. The proposed rule would narrow eligibility for the higher loan amounts to only specific degrees listed by Congress, excluding many essential health profession fields. This, the coalition argues, could lead to increased financial barriers for students pursuing critical health careers, potentially worsening healthcare shortages.

Read the letter to the U.S. Department of Education here. More information is here.

Former US Attorneys File Brief in Voter Data Case: Eighteen former attorneys from the U.S. Department of Justice submitted an amicus brief in federal court this week opposing the Trump administration’s lawsuit seeking access to sensitive personal information of every registered voter in Illinois.

In the amicus brief filed Monday in the U.S. District Court in Springfield, the attorneys — representing both Democratic and Republican administrations — contend that the Department of Justice lacks legal authority to request this information.

The attorneys also allege that the agency is concealing its true intent in seeking the data, asserting it aims “to enable the federal government to conduct its own list maintenance to determine whether noncitizens or undocumented immigrants are registered to vote.” The brief is here.