As of midnight on October 1, 2025, the federal government shut down after Congress failed to pass a new funding bill. While shutdowns aren’t unusual, this one comes with added concern: some federal agencies have been directed to prepare for permanent staff reductions.
There are more than 153,000 federal employees in Illinois, including federal law enforcement and active-duty military. Many federal workers deemed “nonessential” are expected to be furloughed until a funding agreement is reached, while core programs such as Social Security, Medicare, Medicaid, and veterans’ health care will continue to operate. The U.S. Postal Service also continues to operate, as do essential services like border protection, disaster response, and law enforcement. Even so, the ripple effects are already being felt across a wide range of programs.
The most immediate impacts are expected to fall on federal services that rely on discretionary funding. These include:
- Furloughs of nonessential federal workers
- Delays in customer service for Social Security, Medicare, and VA
- Disruption to WIC, SNAP benefit delivery, and EBT retailer renewals
- Reduced food and environmental inspections (USDA, EPA)
- Limited operations at national parks and monuments
- Delays at airports (TSA, air traffic control)
- Freeze on federal research grants and small business loans
- Staffing cuts at the Department of Education, where about 87% of employees have been furloughed and most grant activity has been suspended
Programs that will not shut down, such as Social Security, Medicare, Medicaid, veterans’ benefits, mail delivery, and national security functions, provide some stability, but the broader economic and operational consequences are significant. History shows shutdowns cost far more than they save. The Congressional Budget Office (CBO) estimates that the 2018-19 shutdown reduced the Gross Domestic Product (GDP) by a total of $11 billion, including $3 billion that could not be recovered. This time, the added directive from the Office of Management and Budget to prepare for long-term workforce reductions raises the possibility that the impact will extend well beyond the shutdown itself.
Important Upcoming Dates – Statewide
October 14-16 – Veto Session Week 1
October 28-30 – Veto Session Week 2
In the News
Here’s what’s in Illinois’ $50.6B six-year infrastructure plan – Capitol News Illinois, October 2, 2025
Illinois’ latest six-year infrastructure plan includes $50.6 billion in projects, according to the Illinois Department of Transportation.
Shutdown showdown: Pritzker blames Trump – Politico, October 2, 2025
While there’s a lot of finger-pointing among Democrats and Republicans in Washington, Pritzker said the blame rests with President Donald Trump.
New program looks to address lawyer shortage in Illinois – The State Journal-Register, October 2, 2025
The Illinois Supreme Court has greenlit a commission to develop a program that would allow people who are not lawyers to offer limited legal advice, citing a shortage of lawyers.
Pritzker announces $50.6 billion multi-year infrastructure program – Capitol Fax, October 1, 2025
Governor JB Pritzker and the Illinois Department of Transportation (IDOT) joined state and local leaders, labor and transportation stakeholders today to announce the largest multi-year [2026-2031] program to build and repair infrastructure in state history: $50.6 billion over six years, continuing an unprecedented investment in safety, mobility and quality of life made possible by the Governor’s Rebuild Illinois capital program.
Pritzker spells out potential support for Bears stadium – WBBM, October 1, 2025
Governor Pritzker said he’s open to supporting the Bears’ request for state assistance for development around the team’s planned future stadium in Arlington Heights and is clarifying one of his conditions for that support.
Pope defends church honoring Durbin – POLITICO, October 1, 2025
Pope Leo XIV waded into the contentious waters of U.S. politics Tuesday — and at the heart of the storm was Sen. Dick Durbin. He urged Catholics to resist reducing any political figure — Durbin included — to a single-issue caricature.
Insurance company seeking $4M reimbursement for ‘fraudulent’ claim made by Wyndham Hotel – WCIA, October 1, 2025
An insurance company claiming a Springfield hotel owner was responsible for vandalism is also asking to be reimbursed for a previous damage claim paid out to the hotel.
What a federal government shutdown means for Illinois – Chicago Tribune, October 1, 2025
What that means is that while government offices continue to stay open for their most important operations, so-called nonessential work is suspended, paychecks are not issued and many workers are furloughed until Congress approves a new funding plan. President Donald Trump has amped up the threats this time around, saying he plans to fire employees, rather than just furlough them, a move he says will hurt Democrats.
Greg Hinz: Finger-pointing abounds as state moves to speed delivery of late — very late — financial report – Crain’s Chicago Business, October 1, 2025
With audited Illinois financials now arriving a jaw-dropping 25 months after the end of the state’s fiscal year, top officials are moving to implement a new system they say will expedite the release of data on the state’s financial condition.
Eye On Illinois: Loudly opposed bill loses its primary sponsor to a career change – Shaw Local, October 1, 2025
One item unlikely to gain new traction later this month is House Bill 2827, the Homeschool Act. That might’ve been a safe prediction anyway, given the vocal and visible opposition during the spring session, but one recent development could be a strongly mitigating factor: the bill’s primary sponsor is leaving the Legislature.
Illinois officials say DHS has requested 100 National Guard troops deployed in Chicago days after Oregon National Guard federalized – The Daily Line, September 30, 2025
Gov. JB Pritzker says the Department of Homeland Security (DHS) has sent a memo to the Department of Defense (DOD) requesting the deployment of 100 Illinois National Guard troops in Chicago.
Illinois, 11 other states win temporary injunction in lawsuit against DHS funding cut – The Daily Line, October 1, 2025
A federal judge granted a temporary restraining order Tuesday blocking a federal order reallocating funding from Illinois and 11 other states.
What a federal government shutdown would mean for Chicago and Illinois – Chicago Sun-Times, October 1, 2025
There are more than 153,000 federal employees in Illinois. Federal workers have already experienced massive upheaval due to DOGE cuts earlier this year. Now they could face potential firings with the government now shut down.
House speaker unsure if there’s enough support for Bears stadium tax break – Daily Herald, September 30, 2025
During an appearance in Arlington Heights Tuesday night, Illinois House Speaker Emanuel “Chris” Welch said he’s unsure whether property tax break legislation that would allow the Bears to leave Chicago for the Northwest suburb has a chance of passing.
WATCH: Trump calls Pritzker ‘loser’ as governor prepares for troop deployment lawsuit – The Center Square, September 30, 2025
Trump told members of the military Tuesday morning that multiple murders a week in Chicago has the city and Pritzker on his radar.
During visit to Yorkville, Bailey and Del Mar talk taxes, power shifts as they begin campaign for governor’s race – WSPY News, September 30, 2025
The second time around, Republican gubernatorial candidate Darren Bailey is counting on people to know they need to get off the fence and show up at the polls. The southern Illinois farmer carried 89 of the state’s 102 counties in 2022 but got just 42 percent of the vote overall, his popularity offset by J.B. Pritzker’s mainly in heavily Democratic and densely populated Cook County. Bailey says the state’s in deeper distress now and taxes are a big reason.
WATCH: Former state lawmakers endorse, donors support GOP candidate Dabrowski – The Center Square, September 29, 2025
Former state Reps. Jeanne Ives, R-Wheaton, and Tom Morrison, R-Palatine, announced their endorsements of former Wirepoints President Ted Dabrowski on Monday.
Illinois officials say DHS has requested 100 National Guard troops deployed in Chicago days after Oregon National Guard federalized – The Daily Line, September 30, 2025
Gov. JB Pritzker says the Department of Homeland Security (DHS) has sent a memo to the Department of Defense (DOD) requesting the deployment of 100 Illinois National Guard troops in Chicago.
Raoul joins panel discussion on state consumer, worker protection efforts in light of federal pull back – The Daily Line, September 30, 2025
Illinois Attorney General Kwame Raoul joined state attorneys general on Monday to discuss actions taken by states to fill gaps in consumer and worker protections.
Hunters Feeding Illinois could be entering final year amid funding cuts – WCIA, September 29, 2025
A program that helps provide protein to Illinois residents and families is exploring what its future may look like as funding runs dry due to federal budget cuts. Hunters Feeding Illinois is returning for its fourth season, but organizers said one of its major partners may need to end programming after the passage of the One Big Beautiful Bill Act.
Opinion: Pritzker can curb Chicago gun violence by enforcing state law – Crain’s Chicago Business, September 29, 2025
Though President Donald Trump’s threat to use the National Guard has nothing to do with crime in Chicago, our governor can take a major step to reduce it.
Opinion: Why Illinois needs to reform its tax policy – The Daily Herald, September 27, 2025
But as former Chicago Mayor Rahm Emanuel once said, “You never want a serious crisis to go to waste.” No doubt, Trump’s policies have created a serious crisis. If anything positive comes out of the fiscal chaos Trump’s created, it’ll be incentivizing Illinois lawmakers to eliminate the structural deficit by reforming Illinois tax policy.
Illinois law prohibits sheriffs from assisting ICE with civil immigration enforcement. Some wish they could – Capitol News Illinois, September 29, 2025
Illinois sheriffs had mixed views on the TRUST Act, which restricts state law enforcement officials from cooperating with federal officers on civil immigration matters.
New law has Illinois creating statewide office to support public defenders amid ongoing justice reforms – Chicago Tribune, September 29, 2025
To help overworked public defenders, the so-called FAIR Act calls for providing county public defenders with access to more attorneys, forensic experts, paralegals and other office staff members.
Pritzker criticizes Trump over federal budget, vaccine policy and new Tylenol stance – Journal Star, September 28, 2025
Illinois Gov. JB Pritzker took two positions this week that directly contrast with the Trump administration’s standings on vaccinations and budgeting.
State senator files multiple bills to protect consumers from unfair insurance rate setting – WAND News, September 26, 2025
Sen. Michael Hastings (D-Frankfort) has filed four bills to help address auto and homeowner insurance ratemaking.
Central Illinois Republicans rally for increased student privacy – WGLT, September 26, 2025
Central Illinois Republicans are putting their weight behind a former political candidate’s complaint with the U.S. Department of Education about student privacy.
Chicago’s international grocery stores struggle to keep prices down and import goods – Chicago Sun-Times, October 3, 2024
Tariffs are hitting Chicago’s ethnic and international grocery stores particularly hard because most of their products are imported. And often, these items, like grains, spices or herbs, are not easily sourced in the U.S.
RTA cuts 2026 transit gap in half — but funding fight remains – Crain’s Chicago Business, October 2, 2025
The long-feared $771 million “fiscal cliff” facing Chicago’s transit agencies may not be as steep as expected. The Regional Transit Authority is poised to revise its 2026 budget shortfall tomorrow to less than $300 million.
Illinois students continue to fall behind on proficiency standards, higher education affordability barriers remain, report finds – The Daily Line, October 2, 2025
Evidence-based funding has improved per-pupil spending, but Illinois students continue to fall behind the national average on proficiency, a new report found. Illinois’ public universities and community colleges are also seeing a decrease in enrollment and face growing budget gaps.
New study on Illinois’ public education system sees promise and problems – Chicago Tribune, October 1, 2025
Education in Illinois shows promising areas of growth — including improved kindergarten readiness and increased graduation rates — but remains hampered by stagnant reading and math literacy, as well as rising higher education costs, according to a new report.
Resolution would require direct introductions, substitute legislation to be publicly available an hour before council committee votes – The Daily Line, October 2, 2025
For the second time in several years, alderpeople will consider changing City Council rules to require substitute ordinances and directly introduced legislation to be available for public viewing ahead of consideration and votes by members.
State and local officials attend groundbreaking for quantum computer campus on former South Side steel mill site – The Daily Line, October 1, 2025
State and local officials joined Related Midwest, real estate firm CRG and tech leaders Tuesday to break ground on the first phase of Quantum Shore Chicago, which will be a 440-acre technology and innovation district on the old U.S. Steel South Works site along the Chicago lakefront.
Villegas introduces resolution calling for aligning Chicago with statewide election schedule – The Daily Line, September 30, 2025
A Northwest Side alderman has introduced a resolution that calls on state lawmakers to allow the city to move its municipal elections in alignment with statewide general elections as a way to drive up turnout and drive down costs.
Hundreds gather to denounce federal push to deploy military to Illinois – Chicago Tribune, September 30, 2025
Through the same downtown streets federal immigration agents patrolled over the weekend, chants of “No ICE, no troops!” rang out Tuesday evening as hundreds marched against President Donald Trump’s recent surge in immigration enforcement locally.
Museum of Science and Industry workers’ union votes to authorize strike – WBEZ, September 23, 2025
The museum employees have been in contract negotiations for more than two years. Workers say 90% of eligible employees voted to strike, if necessary.
Villegas introduces resolution calling for aligning Chicago with statewide election schedule – The Daily Line, September 30, 2025
A Northwest Side alderman has introduced a resolution that calls on state lawmakers to allow the city to move its municipal elections in alignment with statewide general elections as a way to drive up turnout and drive down costs.
Ethics committee to hold hearings on OIG mental health equity audit, report for Q2 2025 – The Daily Line, September 30, 2025
The City Council Committee on Ethics and Government Oversight on Wednesday will hold two subject matter hearings on recent Office of Inspector General (OIG) reports. The committee is set to meet in council chambers at 10 a.m.
Knudsen introduces ordinance to lift ban on dogs in restaurants if businesses choose – The Daily Line, September 29, 2025
A Lincoln Park alderman on Thursday introduced a proposal that would allow restaurants and cafes to accept dogs inside their establishments if they choose. Ald. Timmy Knudsen’s (43) ordinance would formally legalize and regulate the practice that is currently outlawed but often selectively enforced.
Pritzker says feds seeking Chicago troop deployment. ‘What I have been warning of is now being realized’ – Capitol News Illinois, September 29, 2025
The Department of Homeland Security is seeking to send 100 military troops to Chicago, according to Gov. JB Pritzker, who assailed the move as the Trump administration’s latest — yet not unforeseen — push to consolidate power.
Feds stage show of force in Chicago – Politico, September 29, 2025
Dozens of armed and masked federal officers fanned out across downtown Chicago on Sunday in an operation that Gov. JB Pritzker and Mayor Brandon Johnson condemned as a staged show of intimidation, not a serious crime-fighting effort.
With potential mass transit service cuts looming, IL legislators seek reforms – The Center Square, September 29, 2025
Illinois taxpayers may be put on the hook to pay for a more than three-quarters of a billion dollar fiscal cliff for mass transit in the Chicago region. Regional Transportation Authority officials point to a combined $771 million budget shortfall in annual spending. Authorities warn if the fiscal cliff isn’t addressed, changes the system’s more than one million daily riders could face are cuts that limit now 24-hour daily bus and rail service to operating only between the hours of 6 a.m. and 9 p.m.
Knudsen introduces ordinance to lift ban on dogs in restaurants and bars if businesses choose – The Daily Line, September 29, 2025
A Lincoln Park alderman on Thursday introduced a proposal that would allow restaurants and bars to accept dogs inside their establishments if they choose. Ald. Timmy Knudsen’s (43) ordinance would formally legalize and regulate the practice that is currently outlawed but often selectively enforced.
More office workers are helping to revive the Loop, but office vacancy rate is still high – Chicago Sun-Times, September 29, 2025
Foot traffic is coming back to the Loop, though it’s still behind prepandemic levels, as some companies remain skittish on a full return to in-person work.
As Illinois congressional delegation seeks answers, ICE cancels meeting – Capitol News Illinois, September 26, 2025
Members of Congress and Gov. JB Pritzker want ICE to answer questions about enforcement operations in the state and what happens to people after they’ve been detained by federal agents.
