104th ILLINOIS GENERAL ASSEMBLY:
The Illinois General Assembly stands adjourned for the week, with both chambers set to reconvene Tuesday, May 20, through Friday, May 23. A week from today — Friday, May 23 — is the Third Reading Deadline for legislation in the opposite chamber. Just two weeks remain in the Spring Legislative Session.
Representative Fred Crespo was abruptly removed as Chair of the House Appropriations General Services Committee, banned from the House Democratic Caucus, and removed from the bicameral bipartisan Legislative Audit Commission. The Speaker reportedly took action because Representative Crespo, a fiscal conservative, was not following caucus communication protocols and was preparing to introduce his own alternative budget proposal without the backing of the leadership or the House Democratic caucus. Speaker Welch appointed Deputy Majority Leader Bob Rita as the new chair of the House Appropriations General Services Committee. It is unknown how the House Moderate Caucus, which Crespo is a member, will react.
Budget Update: With the adjournment deadline closing in, legislators are grappling with finalizing the FY 2026 budget. The fiscal challenges are particularly evident this year due to a projected $1 billion budget deficit, which is exacerbated by economic uncertainties stemming from on-again off-again tariffs and unknown reductions in federal funding. Another complication: the looming $750 million transit “fiscal cliff,” although a resolution may not be found by the end of the Spring session.
On Monday, the Governor’s Office of Management and Budget released its revised revenue forecast, adjusting figures for both the current and upcoming fiscal years. For Fiscal Year 2025, GOMB increased its projection by $19 million, while simultaneously reducing its FY 2026 forecast by $536 million (or 1%) below the General Funds revenue forecast originally presented in the Governor’s introduced budget. This updated FY 26 estimate assumes the General Assembly will approve all revenue proposals introduced in the FY 26 budget. These adjustments mean that GOMB now projects $54.9 billion in revenue for the fiscal year starting July 1, down from its previous estimate of $55.5 billion.
Looking at specific revenue streams, GOMB now predicts $351 million less in corporate income taxes due to a lower forecast for corporate profits, along with $289 million less in individual income taxes resulting from recently reduced forecasts of employment, diminished wages and salary growth, and lower estimated stock market performance.
Additionally, the new budget forecast anticipates $150 million less in sales taxes and a mere $70 million less from the federal government. These reductions are partially offset by higher interest income, as the Federal Reserve has been slower to reduce interest rates than initially expected.
Despite GOMB’s modest projection in loss of federal funding, the potential decrease in this area is perhaps the most unpredictable aspect of all considerations in this budget cycle. The potential loss of federal Medicaid funding — coupled with the loss of health care coverage for hundreds of thousands — is just one example of the impact that ever-changing federal policy is having on the Illinois budget. The recent budget reconciliation recommendations from the US House Energy and Commerce Committee suggest that approximately 300,000 Illinois residents could lose health coverage over the next decade. Additionally, the Congressional Budget Office forecasts that another 190,000 individuals in Illinois may lose Medicaid coverage because of new tax credit rules and eligibility restrictions under the ACA. The country’s 23 Democratic Governors have expressed concerns about these potential cuts, calling them “disastrous” and highlighting the difficulties the states would face in absorbing or replacing these funds.
The Governor and legislative leaders acknowledge the complexities in this budget cycle and indicate the real likelihood that lawmakers may need to reconvene during the summer to make necessary adjustments after the budget’s implementation on July 1. Despite these challenging circumstances, the Governor and legislative leaders remain committed to achieving a “balanced budget.” Read more here and here.
2025 Spring Session Key Dates and Deadlines:
May 23: Deadline – Third Reading Deadline Bills in Opposite Chamber
May 31: Adjournment
GOVERNOR’S HIGHLIGHTS:
Governor Pritzker, Australian Ambassador Rudd, and UK Ambassador Mandelson convened with industry leaders to strengthen quantum technology collaboration. Key aspects of the roundtable with international quantum companies: joint research, partnerships, and workforce development. Illinois secured an agreement with Australian firm Diraq to expand to the Illinois Quantum and Microelectronics Park. Discussions emphasized accelerating quantum innovation for technological advancement and security while strengthening cross-sector collaboration. Australia continues advancing its National Quantum Strategy with significant investments, including supporting PsiQuantum’s quantum computer development in Brisbane and accelerating commercialization through the Critical Technologies Challenge Program.
Electric Bus Company to Open First U.S. Assembly Plant in Illinois: Damera Corporation is establishing its first U.S. assembly plant in greater Peoria, with a $31.5 million investment supported by the REV Illinois program. About 90 new jobs will be created at the facility by the Canadian transit company, which distributes zero-emission Karsan eJEST minibuses. The plant will be multi- faceted, including assembly lines, testing zones, battery assembly areas, and administrative offices to support the company’s expansion into the U.S. electric transit bus market. Read more here.
Local Transportation Grants Available: The Illinois Department of Transportation has announced that $400 million is available for local transportation projects aimed at improving mobility and quality of life across communities statewide. With applications due June 1, project selection will key in on cost-effectiveness, feasibility, and safety. Eligible projects span multiple categories—highways, bike and pedestrian facilities, transit, passenger rail, freight, safety improvements, federal grant matches, and other relevant initiatives. Any project phase qualifies for funding, including preliminary engineering work that prepares for future funding opportunities.
Local governments that manage transportation infrastructure are invited to apply, with priority consideration given to proposals benefiting disadvantaged or economically distressed communities. And while Disadvantaged Business Enterprise goals must be met, local matching funds are not required for participation. Read more here.
West Nile Virus: The Winnebago County Health Department collected this year’s first mosquito pool to test positive for West Nile virus on May 9 in Rockford, says the Illinois Department of Public Health. More here.
OTHER NEWS:
2026 Election Update: Republican Congressman Mike Bost announced he will seek reelection to the 12th District.
Cook County Commissioner Kevin Morrison announced his candidacy for Congress in Illinois’ 8th Congressional District. That district is currently represented by US Rep. Raja Krishnamoorthi, who is running for the U.S. Senate.
Also running for the Democratic nomination for the 8th Congressional District is Sanjyot Dunung, who grew up in Des Plaines, the daughter of Indian immigrants. She holds board positions with several organizations, including the National Small Business Association, and has worked with President Biden’s Foreign Policy Working Group and UNICEF USA.
This week also saw a third candidate announcing a run for the Democratic nomination for the 8th Congressional District — Yasmeen Bankole, a Hanover Park Trustee. She has most recently worked as regional director for Senator Dick Durbin and earlier worked in Krishnamoorthi’s office.
State Senator Robert Peters announced he will seek the Democratic nomination to replace Congresswoman Robin Kelly in the 2nd Congressional District; she is seeking to replace retiring US Senator Dick Durbin. Peters serves as a Majority Whip in the Illinois Senate and chairs the Senate Labor Committee. Adal Regis, who works in the nonprofit sector, will also seek the Democratic nomination in the 2nd Congressional District.
Evanston Mayor and former State Senator Daniel Biss announced he will seek the Democratic nomination to replace retiring Congresswoman Jan Schakowsky in the 9th Congressional District.
Democrat Paul Nolley will challenge Republican Congressman Darin LaHood in the 16th Congressional District.
Raoul Files Lawsuit Over Federal Immigration Enforcement: A coalition of 20 attorneys general led by officials from Illinois, California, New Jersey, and Rhode Island announced plans to file two lawsuits against the Trump administration. FEMA, DHS, DOT and their respective leaders are being targeted by the legal actions for allegedly illegal attempts to force states into immigration enforcement by threatening to withhold billions in federal funding. The lawsuits challenge new conditions requiring that states cooperate with federal immigration enforcement in order to receive critical public safety and infrastructure funds. Read more here.
Illinois Recovers $45 Million Settlement From CVS: Illinois’ Attorney General secured a $45 million settlement from CVS Caremark for failing to properly disclose and remit pharmacy benefit rebates owed to the State. The Governor’s Office and CMS attorneys negotiated the settlement, covering rebates collected between April 2020 and June 2024 under CVS Caremark’s contract for pharmacy benefits for state employees, retirees, and their dependents. These recovered funds will reduce the financial burden on Illinois taxpayers. Read more here.