The One Big Beautiful Bill Act (OBBB) passed both chambers of Congress, and President Trump signed it into law on July 4. Most major provisions, including Medicaid cuts, tax cuts, and SALT deduction changes, will take effect on January 1, 2026. SNAP eligibility requirements will change before the end of 2025, administrative funding reduction will take effect October 1, 2026, and state error rate penalties will begin October 1, 2027.

• Medicaid Cuts: Medicaid will see $1.02 trillion in national cuts over ten years. Illinois will be severely affected by new restrictions on provider taxes, which currently generate $4.1 billion annually for the state’s Medicaid program. The bill gradually reduces the provider tax cap from 6% to 3.5% by 2031. In addition, the legislation imposes new work requirements and eligibility restrictions that would significantly increase the state’s administrative burden to ensure compliance. Additional cuts include reductions in supplemental provider payments and restrictions on immigrant eligibility.
• SNAP Cuts: The federal SNAP budget will be cut by approximately 20% or $186B through 2034. Beginning on October 1, 2026, states will have to cover 75% of SNAP administrative costs, rather than the current 50%. Additionally, the bill adds a penalty of 5% to 15% of SNAP benefit costs for state’s with error rates over 6%, effective on October 1, 2027. Illinois’ FY 2024 error rate was 11.56%, a level that would require the state to fund 15% of SNAP benefits for a cost of around $705 million. Illinois will have to significantly increase its administrative capacity to avoid the penalty.
• Tax Changes: The bill increases the State and Local Tax (SALT) deduction cap to $40,000 for five years before returning to the current $10,000 limit. It also makes the Child Tax Credit permanent at $2,200, indexed to inflation. Tipped income up to $25,000 is not taxed through 2028, with income-based limitations.
• Clean Energy Changes: The OBBB terminates federal electric vehicle tax credits at the end of September 2025, seven years earlier than scheduled. Wind and solar tax credits also face December 2027 project deadlines. New restrictions on foreign entities, particularly Chinese companies that dominate the renewable energy and electric vehicle markets, may slow future renewable energy projects that rely on global supply chains. These changes could limit future renewable energy development, which the State of Illinois has invested heavily into.
• Limited Spending Increases: Despite significant cuts, Congress approved $50 billion nationally to be used toward rural health transformation grants over five years. The bill also provides $150 million in new national funding for home and community-based service waivers.

Important Upcoming Dates – Statewide

October 14-16 – Veto Session Week 1

October 28-30 – Veto Session Week 2

In the News

Illinois attorney general investigation of DuPage County clerk a concern for county’s Democratic growth – Chicago Tribune, July 11, 2025.

DuPage County Circuit Judge Bonnie Wheaton’s order on Monday appointing Raoul’s office as special prosecutor is rooted in more than two years of internecine battles between the Democratic clerk and the Democratic-led DuPage County Board.

Audit finds state agency fell short on social equity initiatives outlined in Gov. JB Pritzker’s landmark climate bill – Chicago Tribune, July 9, 2025.

Gov. JB Pritzker’s economic development agency fell short in implementing elements of the governor’s landmark climate bill aimed at ensuring social equity in the effort to move the state toward a carbon-free future, Illinois’ auditor general said in a report released this week.

Richard Porter eyeing Durbin’s seat – Politico, July 9, 2025.

Richard Porter, a battle-hardened Republican Party loyalist, is considering a bid for the U.S. Senate seat now held by Democratic Sen. Dick Durbin, who’s retiring. Porter sees an opening for himself and the Illinois Republican Party by blending establishment savvy with MAGA fealty. His background: Porter, 65, is a seasoned attorney from Chicago’s northern suburbs and a former Republican National Committeeman who has worn many hats over the years.

State Sen. Simmons joins congressional race – Evanston Now, July 8, 2025.

State Sen. Mike Simmons of Rogers Park announced Tuesday he’ll join the crowded field seeking to represent the 9th District in Congress.

Illinois officials blast Medicaid, SNAP cuts in Trump-led megabill – NBC Chicago, July 8, 2025.

Chicago Mayor Brandon Johnson and Congressman Sean Casten weighing in on the cuts in the bill that they say is going to impact working families and their access to healthcare and benefits, like Medicaid and SNAP.

Competition for 9th Congressional District heats up as 2 state legislators join large Democratic field – Chicago Tribune, July 8, 2025.

State Sen. Mike Simmons will launch his campaign Tuesday, he told the Tribune, joining recently announced state Rep. Hoan Huynh — who also planned a campaign kickoff event Tuesday evening — and some 10 other Democratic candidates vying for the seat.

What Christian Mitchell brings to the table for Pritzker – Crain’s Chicago Business, July 7, 2025.

At 38 years old, Christian Mitchell has been inside most corners of state government as a top advisor on political campaigns, state legislator, deputy governor and civic engagement leader at a major university.

Hammond announces reelection campaign for Illinois 94th District – Herald-Whig, July 7, 2025.

Hammond has served in the Illinois house since 2010, representing the Illinois 94th District before redistricting shifted her district to the 93rd in 2011. In 2022, Hammond was again elected to represent the 94th District.

Illinois Senate President Don Harmon appeals potential $9.8 million fine for improperly accepting campaign cash – Chicago Tribune, July 7, 2025.

An attorney for Illinois Senate President Don Harmon’s political operation says state election authorities reached an “absurd” conclusion earlier this year in issuing nearly $10 million in penalties against Harmon’s campaign fund.

Eye On Illinois: Good time for local officials to get out in front with budget explanations – Shaw Local, July 5, 2025.

If federal money is frozen or eliminated, will state or local revenue make up the difference? If so, will that cause something else to be cut or increase taxpayer obligations?

It will be difficult to discuss these challenges without acknowledging the cart-before-the-horse aspect of freezing funding related to federal laws without changing the laws requiring implementation of the programs the money supports

As Burnett exits the City Council, Johnson loses a bridge-builder – Crain’s Chicago Business, July 10, 2025.

City Hall veterans say the City Council is not only losing its elder statesman when Ald. Walter Burnett, 27th, resigns this month, but Mayor Brandon Johnson will be out a valuable ally whose 30 years of experience and political savvy allowed him to share hard truths with the Fifth Floor.

Chicago police misconduct costs keep soaring with proposed $35.2 million in deals –Chicago Tribune, July 10, 2025

Chicago’s record spending on police misconduct settlements is likely to climb higher this month with another $35.2 million in proposed deals, most tied to decades-old wrongful conviction cases featuring disgraced detectives.

New Chicago police support center will monitor crime on CTA – ABC7Chicago, July 10, 2025.

The Chicago Police Department has a new support center to help monitor and respond to CTA related crimes. According to CPD’s latest numbers, there is a slight increase in reported CTA crimes this year compared to this time last year. This year, there have been 872 incidents reported, compared to 866 incidents at the same time in 2024. Theft and robberies are the most common crime.

What’s in Bears stadium survey? Seating chart, ticket prices and ‘VIP tailgating’ – Daily Herald, July 9, 2025.

A survey sent to some Bears season ticket holders this week sheds light on possible seating options, ticket prices and amenities in and around a potential new Arlington Heights stadium.

Lawsuit over Cook County tax sales can now include hundreds of former homeowners – Crain’s Chicago Business, July 9, 2025.

Cook County’s delinquent tax sales, which have been on shaky ground since the U.S. Supreme Court deemed the system unconstitutional three years ago, are now being challenged by a class of former homeowners who together may have lost millions of dollars in home equity.

Daily Herald opinion: Compromise and public transit: Mayors raise valid concerns about restructure, but reasonable minds can avert crisis – Daily Herald, July 8, 2025.

And an open letter to lawmakers from the Suburban Mayors Coalition for Fair Transit outlines some critical areas in the failed proposal, which called for replacing the RTA with a new oversight board called the Northern Illinois Transit Authority, that must be addressed.

Mayor Johnson ‘seriously considering’ City Council dean Walter Burnett to run Chicago Housing Authority – Chicago Sun Times, July 8, 2025.

Mayor Brandon Johnson said Tuesday he is seriously considering City Council dean Walter Burnett (27th) to take over a Chicago Housing Authority that has fallen short on delivering on promises of the “Plan for Transformation” made after CHA high-rises were demolished.

Mayor Johnson determined to push for Council vote on ‘granny flats’ measure next week – Chicago Sun Times, July 7, 2025.

Mayor Brandon Johnson may or may not have the votes to give single-family homeowners carte blanche to turn their attics, basements, garages and coach houses into revenue-generating “granny flats.”

Supreme Court ruling casts doubt on birthright citizenship for immigrant families in Chicago – Chicago Tribune, July 6, 2025.

The 6-3 high court decision doesn’t directly address whether birthright citizenship, which is spelled out in the 14th Amendment, applies to the children of immigrants. But the ruling has opened the possibility that President Donald Trump can fulfill the executive order he signed on his first day in office of his second term and block U.S.-born children of immigrants from obtaining citizenship in most of the country — although not, for now, Illinois — until courts decide whether Trump’s efforts are constitutional.

Chicago rent ranks in top 11% of US housing markets – Crain’s Chicago Business, July 3, 2025.

Rents in the Chicago area rank in the top 11% of U.S. housing markets, according to a new report on nationwide housing affordability by Harvard University’s Joint Center for Housing Studies. The median monthly gross rent in the Chicago area rose to $1,400.