Illinois state lawmakers have successfully approved a $55.2 billion budget plan for the upcoming fiscal year, just minutes before a crucial midnight deadline on Saturday night. While the Illinois Senate advanced a measure aimed at overhauling and funding the mass transit system in the Chicago area, the Illinois House ultimately adjourned its spring session without taking action on the measure.
The budget plan, which was unveiled by Democratic leadership on Friday night, includes new taxes targeting gambling, tobacco, and vape products. Additionally, it introduces a delinquent tax payment incentive program designed to assist the state in recovering overdue tax payments. Proposed by Governor JB Pritzker, this initiative is anticipated to generate approximately $198 million in revenue.
Notably, the budget also proposes the elimination of a health care program that provides benefits to undocumented immigrants aged 42 to 64 in Illinois. This decision, part of a broader effort to save the state $330 million, has raised concerns among advocates for immigrant health care.
In terms of educational funding, the proposed budget allocates $307 million in additional support for K-12 schools. However, it does not include the $43 million in property tax relief funds called for under the state’s evidence-based school funding model.
Importantly, the budget does not propose any new sales, income, or service taxes. Following House approval of the budget plan shortly after 10 p.m. on Saturday, it was moved to the Senate for further consideration. However, lawmakers still need to pass the revenue package necessary to fund the spending plan and the “budget implementation” bill, which would legally authorize various programs and services outlined in the budget.
As Democrats hurried to finalize the budget deal shortly after its unveiling, Illinois Senate Republicans expressed frustration with the fast-paced Democratic-led process. Illinois Senate Republican Leader John Curran voiced his concerns, stating, “In less than nine hours, the Democrats are going to file over $1 billion in tax increases. The public are not going to see it until it is filed. They are going to pass it through the House and pass it through the Senate.”
Governor JB Pritzker praised the budget’s passage during a press conference on Sunday morning, emphasizing that it was focused on the needs of Illinois residents. “I’m very proud to say we delivered for them in this budget,” Pritzker stated.
Meanwhile, Chicago residents are anxiously awaiting resolution regarding additional state funding for the region’s mass transit systems. Transit officials have warned that the Regional Transportation Authority system faces a $771 million budget deficit in 2026. If the state legislature does not address this funding shortfall by this summer, the Chicago Transit Authority (CTA), Metra, and Pace may need to implement service cuts of up to 40% next year.
Current proposals for mass transit funding include the implementation of a $1.50 tax on delivery services like Amazon, Grubhub, and Uber Eats, a 10% tax on rideshare trips, and an additional tax on electric vehicles. While these measures aim to generate revenue primarily for mass transit in Chicago, transportation expert Joe Schwieterman from DePaul University cautioned that suburban taxpayers may question the fairness of such funding sources.
He stated, “Revenue sources, taxes aren’t easy to swallow for a lot of suburban governments; ride-share taxes, tollway fees. And the latest news suggests this is going to be a very treacherous effort.”
Among the key components of the mass transit funding proposal is a significant restructuring of the governance and organization of the Chicago area’s mass transit systems. The plan suggests replacing the existing Regional Transportation Authority, which currently oversees budgets for CTA, Metra, and Pace, with a newly proposed body called the Northern Illinois Transit Authority.
While the current funding for Chicago’s mass transit systems is secured through the end of the year, transit officials have indicated that a fall veto session may present another opportunity for adjustments before the budget must be finalized. However, without guaranteed funding for 2026 in place by the summer, transit agencies will begin planning for service reductions as early as next week.
The CTA has outlined potential dire consequences, stating that without the necessary funding, it would be forced to cease operations on some or all service for at least four of its eight rail lines and dramatically cut service at over 50 rail stations. Moreover, they would have to eliminate 74 out of 127 bus routes starting next year. Specific details on affected lines and bus routes have not yet been disclosed.
Similarly, Metra has indicated that it would have no choice but to cut all early morning and late evening trains, reduce weekday service to one train per hour on each route, and curtail weekend train service to one train every two hours on each route. Meanwhile, Pace would be compelled to eliminate all weekend services and cease all weekday operations after 8 p.m.
Schwieterman emphasized that significant cuts could severely disrupt the city and that the economy would likely suffer as a result. “I think right now, there’s wide understanding that we can’t have these draconian 40% cuts. I mean, it just would be very painful, disruptive for the city. The economy would really suffer at the same time.”
He further underscored the necessity of maintaining a strong transit system, noting that without it, highway traffic congestion would intensify. “We already have a congestion problem, so I think even drivers recognize that we have to keep these trains running for quality of life.”
Finally, Schwieterman highlighted that the challenge lies in convincing areas where the necessity of a robust transit system is less visible to constituents. Going forward, any funding deal that could take effect prior to June 1, 2026, will now require a supermajority of 3/5ths to pass, rather than a simple majority. Ben Szalinski and Jerry Nowicki of Capitol News Illinois have contributed to this report.
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