FY2025/2026 Illinois State Budget Released
Illinois Democrats introduced a $55 billion budget Friday evening ahead of today’s deadline to pass the fiscal year 2026 spending plan. The 3,363-page spending proposal was unveiled after 6 p.m. Friday night. The proposal raises about $1 billion in revenue.
Democratic lawmakers are not using broad tax hikes to balance the budget, although the plan does call for specific tax increases in certain areas. The proposal includes new taxes on gambling as well as tobacco and vape products. Some businesses will pay more under the plan – though Illinois’ constitution mandates that the state corporate income tax remain a flat rate.
Late last night, in a House hearing on the spending plan, Democratic leaders said that there will be $55.4 billion in revenue with $55.2 billion in spending. But at several points the chamber’s budget leaders declined to talk about revenue, noting that proposal will come before the committee sometime today.
The plan is roughly in line with what Gov. JB Pritzker proposed in his February budget address as budget talks in Congress have injected uncertainty in state finances.
A health care program that provides benefits to undocumented immigrants in Illinois between ages 42 and 64 also appears to be eliminated.
Pritzker proposed a $55.2 billion spending plan in February, but revenue forecasts have declined since then. The latest estimate in early May from the governor’s office pegged FY26 revenue at $54.9 billion while the General Assembly’s independent Commission on Government Forecasting and Accountability projected revenue would come in at $54.5 billion – $1 billion below Pritzker’s February revenue estimate. Expected declines in federal funding and a diminishing economic outlook have caused the downward revisions.
Republicans pressed on why House Democrats are set to get $1.5 million of spending for their districts while Senate Democrats are expecting $3 million of spending on districting projects – although Democrats wouldn’t confirm or deny those numbers.
Lawmakers will also see their salaries rise as part of the budget, going to a $98,304 base salary from roughly $92,000.
Democratic lawmakers are not using broad tax hikes to balance the budget, although the plan does call for specific tax increases in certain areas. The proposal includes new taxes on gambling as well as tobacco and vape products. Some businesses will pay more under the plan – though Illinois’ constitution mandates that the state corporate income tax remain a flat rate.
Late last night, in a House hearing on the spending plan, Democratic leaders said that there will be $55.4 billion in revenue with $55.2 billion in spending. But at several points the chamber’s budget leaders declined to talk about revenue, noting that proposal will come before the committee sometime today.
The plan is roughly in line with what Gov. JB Pritzker proposed in his February budget address as budget talks in Congress have injected uncertainty in state finances.
A health care program that provides benefits to undocumented immigrants in Illinois between ages 42 and 64 also appears to be eliminated.
Pritzker proposed a $55.2 billion spending plan in February, but revenue forecasts have declined since then. The latest estimate in early May from the governor’s office pegged FY26 revenue at $54.9 billion while the General Assembly’s independent Commission on Government Forecasting and Accountability projected revenue would come in at $54.5 billion – $1 billion below Pritzker’s February revenue estimate. Expected declines in federal funding and a diminishing economic outlook have caused the downward revisions.
Republicans pressed on why House Democrats are set to get $1.5 million of spending for their districts while Senate Democrats are expecting $3 million of spending on districting projects – although Democrats wouldn’t confirm or deny those numbers.
Lawmakers will also see their salaries rise as part of the budget, going to a $98,304 base salary from roughly $92,000.