GOVERNOR’S HIGHLIGHTS:
Executive Order: Governor JB Pritzker issued a state disaster proclamation and signed Executive Order 2026-08 to ease diesel fuel costs for Illinois farmers during the fall harvest. The order directs the Illinois Department of Revenue and Illinois State Police to allow on-road use of dyed diesel, typically reserved for agricultural purposes. It also instructs state agencies to consider additional protections for farmers and gives the state greater flexibility to respond to ongoing disruptions in fuel markets and the agricultural economy.
Specifically, the order directs the Illinois Department of Revenue and Illinois State Police not to impose state penalties when dyed diesel fuel from bulk storage is sold or used on highways and state roads for farming and agricultural purposes through December 31, 2026. IDOR will issue guidance on eligible uses and required documentation.
The order also directs the Illinois Department of Transportation to consider extending the Illinois Harvest Permit program into winter, spring, or summer 2027 if diesel shortages and high costs continue. The program allows heavier trucks on designated routes.
Finally, the disaster proclamation directs state agencies to evaluate and implement additional measures to address diesel shortages and high costs. It also activates the governor’s authority to coordinate state personnel and resources. Read more here.
PJM Governor’s Collective: Governor JB Pritzker joined a bipartisan group of 13 governors and the mayor of Washington, D.C., in signing a memorandum of understanding that formally establishes the PJM Governors’ Collaborative. The multistate organization will strengthen coordination among participating jurisdictions as they work to lower costs for families and improve the reliability of the regional electric grid operated by PJM. The grid operator manages electricity flow across all or parts of 13 states, including northern Illinois, and its decisions affect electric reliability and costs for millions of households and businesses. Read more here.
Local Food Infrastructure Grants Available: The Illinois Department of Agriculture will offer $1.8 million in funding through the Local Food Infrastructure Grants program. The grants will support projects such as refrigerated vehicles, livestock processing facilities, and community kitchens. The funding will strengthen local and regional food supply chains and expand communities’ access to Illinois-grown agricultural products. Read more here.
Governor Breaks Ground on Hollywood River Studios: Governor JB Pritzker joined the Illinois Department of Commerce and Economic Opportunity to break ground on Hollywood River Studios, a new premier production facility in Metro East. Read more here.
Viakable Expanding Manufacturing: Viakable will invest $55 million to expand its manufacturing facilities in La Salle, creating 50 new jobs and retaining 65 existing positions. The expansion includes a 22,000-square-foot addition, 17 advanced machines, and upgrades to critical utilities. This will increase the company’s capacity for wire drawing, cabling, extrusion, and packaging, significantly boosting its manufacturing output for the U.S. electrical infrastructure market. Read more here.
Grain Storage Loan Program: The Illinois Finance Authority launched a pilot low-interest loan program to help farmers finance the construction of on-site grain storage facilities. By expanding access to on-farm storage, the program aims to lower long-term reliance on remote storage and improve harvest efficiency. The initiative builds on the Governor’s efforts to help Illinois farm families facing rising input costs, harmful tariffs, and economic uncertainty. Read more here.
IDFPR Joins Settlement with Crypto Kiosk Operator: The Illinois Department of Financial and Professional Regulation and 33 other state financial regulators reached a $2.5 million settlement with Coinme Inc. (NMLS ID 1185542), a Seattle-based cryptocurrency money transmitter and kiosk operator. The settlement addresses violations of Bank Secrecy Act and anti-money laundering requirements designed to prevent illicit use of the financial system.
Under the settlement, Coinme must end its virtual currency kiosk operations by January 1, 2027, or pay an additional $4 million penalty. The $2.5 million settlement will be distributed among participating states based on transaction volume. Coinme must also hire an independent consultant to evaluate the scope and effectiveness of its Bank Secrecy Act and anti-money laundering program and submit a report to the states within six months. After filing the report, Coinme will have 12 months to correct any identified deficiencies. Read more here.
Illinois Expands Restaurant Meals Program: The Illinois Department of Human Services announced that the Restaurant Meals Program has expanded statewide after reaching 50 participating restaurants across 16 counties. The program lets eligible Supplemental Nutrition Assistance Program customers use their Link cards to buy prepared meals at participating restaurants, giving more than 400,000 households with difficulty buying and preparing food greater access. Eligibility is limited to SNAP households in which every member is age 60 or older, has a disability, is the spouse of an eligible older adult or person with a disability, or is experiencing homelessness. Read more here.
104th ILLINOIS GENERAL ASSEMBLY:
The Illinois General Assembly remains adjourned until the call of the Presiding Officers. Veto Session is scheduled for November 17 – 19 and December 1 – 3.
The House Executive Committee will hold a hearing on October 13 at 10:00 am in the Bilandic Building in Chicago to discuss HB 5282 (The Municipal Home Rule Charter Act).
The House Cybersecurity, Data Analytics, & IT Committee will hold a hearing on October 14 at 11:00 am in the Bilandic Building in Chicago to discuss Cybersecurity Awareness Month.
OTHER NEWS:
FY 27 Revenue Report: The Commission on Government Forecasting and Accountability reports that in the first quarter of FY 2027, the State’s General Funds increased by $1.023 billion (8.2%), driven primarily by substantial growth in Corporate Income Tax (up $695 million or 60.1%) and Sales Tax (up $305 million or 10.0%). Personal Income Tax also rose by $137 million (1.9%) despite constraints from last year’s adjustments. Other State Sources rose modestly by $56 million (5.9%), led by Insurance Taxes and Fees. However, several areas declined, including Interest on State Funds, Other Sources, and Estate Tax. Transfers In experienced a total decline of $70 million, though revenue from Gaming, Sports Wagering, and Cannabis transfers improved. Federal sources increased by $83 million (8.0%) despite lower totals in September, but still fell short of the growth rate needed to meet the budget projection of nearly $4.0 billion for the fiscal year. The Commission continues to caution that “while the first quarter produced strong revenue gains, several factors are expected to place downward pressure on revenues during the remainder of FY 2027 and could offset a significant portion of the gains realized thus far.” Read the full report here.
September Revenue Report: The Commission also reported September revenue figures. In September, the State’s General Funds rose by $508 million (9.7%), leading to a strong first-quarter total of $1.023 billion (8.2%) compared to FY 2026. Corporate Income Tax receipts rose significantly, up $555 million (62.7%) from last year. Personal Income Tax receipts, however, fell by $61 million (1.9%). Sales Tax receipts continued to rise, up $82 million (8.1%), marking five consecutive months of growth above FY 2026 levels. Other state sources rose $60 million, driven mainly by Insurance Taxes. Transfers in also gained $79 million, largely from the Income Tax Refund Fund Transfer. In contrast, Federal Sources were down $89 million in September. Overall, while the strong start to the fiscal year is promising, potential factors could offset future gains. Read the full report here.
Illinois Gaming Report: A new report shows that Illinois’ gambling industry generated a record $2.7 billion in state and local tax revenue last year, up 19.2% from the previous year and 90% since 2019, when Illinois significantly expanded legalized gambling. Video gambling was the largest source of gambling revenue for the second consecutive year, generating more than $1 billion in state and local taxes. Illinois now has nearly 50,000 terminals, and Chicago’s recent decision to allow video gambling is expected to substantially increase revenue. Sports betting also grew, with more than $15 billion wagered and $593 million generated in state taxes; nearly 99% of the more than 319 million bets were placed online. Casino receipts rose 13%, but state fiscal analysts attributed much of that growth to opening additional casinos rather than stronger performance at existing properties. Lottery revenue remained relatively flat at about $788 million. Capitol News offers more here.
Federal Judge Blocks Illinois Rules on Prediction Markets: A federal judge sided with Kalshi and other prediction-market operators, blocking the state from enforcing much of its new regulatory framework that treated these markets like gambling. Judge Martha Pacold ruled that prediction-market contracts are likely financial swaps subject to federal oversight by the Commodity Futures Trading Commission (CFTC), meaning Illinois laws requiring state licensing, limiting sports-related contracts, restricting users under 21, and controlling where and to whom the contracts can be sold are likely preempted by federal law. However, the ruling does not eliminate Illinois’ proposed tax on prediction-market transaction fees; Pacold left that issue open for further arguments, suggesting a tax may not conflict with federal regulation in the same way that direct regulation of the market does. The case is part of a broader national fight over whether companies such as Kalshi and Polymarket are operating financial markets or essentially offering sports betting, and the dispute is expected to eventually reach the U.S. Supreme Court. Read more here.
State Farm Increasing Homeowners Rates: In a recent filing with the Department of Insurance, Bloomington-based State Farm disclosed plans to raise Illinois homeowners’ insurance rates by nearly 8% this fall. The increase took effect on new policies on October 1 and will apply to existing customers beginning in December. State Farm, which insures about 1.49 million Illinois homeowners, attributed the increase to catastrophic losses from extreme weather events. Read more here.
Constellation and Google Announce Plans to Increase Nuclear Power: On Tuesday, Constellation Energy, the largest U.S. nuclear power provider, agreed to invest $4.3 billion to boost output at 11 nuclear plants in Illinois, Pennsylvania and New Jersey and sell the additional power to Google over 20 years. Constellation spokesman Paul Adams said about $2 billion of the investment will go to the Byron, Braidwood, LaSalle and Quad Cities plants in Illinois. Read more here.
ICC Judges Recommend Cut to People’s Gas Rate Increase: Illinois Commerce Commission judges have recommended approving less than half of Peoples Gas’ requested $144 million rate increase. According to the proposed order, Peoples Gas would receive a $66 million rate increase. “This is a step in the right direction, but we urge the ICC to go even further than the proposed order, especially at a time when it is crucial for regulators to address unjustified utility costs,” said Eric DeBellis, general counsel for the Citizens Utility Board, in a news release on Wednesday. The ICC is expected to issue a final decision next month. Any approved increase would take effect in late 2026 or early 2027. Read more here.