Illinois General Assembly Bill Filing Deadline

​The Senate convened briefly last week, but most of the action was behind the scenes as members worked to finalize legislation ahead of Friday’s filing deadline. As of Friday morning, 1,060 Senate bills and 1,230 House bills had been filed since Veto Session. Now, attention will quickly shift to committee assignments and early bill movement ahead of the committee deadlines – March 13 in the Senate and March 27 in the House.

Neither chamber will meet this week; both will return to session on Tuesday, February 17. Gov. JB Pritzker will deliver a combined State of the State and Budget Address to a joint session of the Illinois General Assembly on Wednesday, February 18.

Gov. Pritzker Announces New Pension Funding Plan

2024 Long-Term Pension Funding Plan

On February 21, 2024, Gov. JB Pritzker announced a long-term pension funding plan as a part of his FY 2025 state budget address. The central tenet of this plan was to extend the state’s longstanding pension funding ramp from 90% funded in FY 2045 to 100% funded in FY 2048 by allocating funds freed by retiring bonds in FY 2030 and FY 2033 to the state’s pension system. $6B in backlog borrowing General Obligation Bonds from 2017 are set to be retired in FY 2030, and $10B in pension funding General Obligation Bonds from 2003 are set to be retired in FY 2033. These retirements would allow for additional pension contributions of $250M per year between FY 2030 and FY 2033 and $750M from FY 2034 to FY 2048. The additional contributions planned by Pritzker represent only half of the amounts freed by retiring bonds, as the other half was already earmarked for pensions when the bonds were issued years ago.

As of June 30, 2025, Illinois’ five state retirement systems carry $144.6B in unfunded liability and have an actuarial funded ratio of 47.4%, which is the highest funding level in nearly 20 years. Even so, this funding level is only slightly over half of what is required by the end of the current ramp in FY 2045, and the funded ratio can be heavily impacted by poor investment returns, which are largely out of the state government’s control. Pritzker’s plan attempts to solve these issues by decreasing the annual pension payment growth rate from 2.6% under the current ramp to 1.85%, making the annual payments more manageable. Additionally, it would create fixed-length amortization strips beginning in FY 2035 to soften the potential shock of negative investment returns as the state approaches 100% funding. The plan also addresses the Tier 2 safe harbor issue by adjusting the pensionable earnings cap to match the Social Security Wage Base. The state’s FY 2026 budget set aside $75M for this effort, once the triggering legislation passes. Credit rating agencies have signaled that should Pritzker’s plan be implemented, it could lead to additional credit rating upgrades for the State of Illinois.

Ultimately, Pritzker’s funding proposal did not end up passing in the FY 2025 budget and was not seriously considered as a part of the FY 2026 budget. Hesitancy among General Assembly members to commit funding years in advance and opposition from public sector unions, who want the plan paired with Tier 2 benefit increases to narrow the gap with Tier 1, prevented it from gaining momentum.

Using ITRF Surplus Funds for Additional Pension Contributions

After two years of Pritzker’s pension plan taking a backseat to other significant issues in the General Assembly, he decided to revive his 2024 plan with a new twist in a February 2 press conference. In addition to committing funds freed by retiring bonds, Pritzker is proposing an additional pension funding source by transferring surplus funds above a baseline $150M balance from the state’s Income Tax Refund Fund (ITRF) to pensions at the end of each fiscal year. This could provide an additional funding source as early as FY 2027, allowing for higher pension contributions to occur earlier in the funding ramp and further smoothing out the ramp’s rate of annual increase. If this proposal had been implemented in recent years, the state would have contributed an additional $405M in FY 2024, $103M in FY 2025, and $550M in the current fiscal year to pensions.

The ITRF, which is the proposed funding source for additional pension payments, collects a percentage of personal and corporate income tax revenues to be used to reimburse taxpayers who are owed money when they file taxes. Although there is a formula to set the percentage of funds to be reserved in the ITRF, in recent years, the annual percentage has been set statutorily as part of the budget process to prevent overcollection. At the end of each fiscal year, if funds remain in the ITRF, they are transferred to the General Revenue Fund in the next fiscal year. Under Pritzker’s proposal, the ITRF would maintain a balance of $150M, but surplus funds would be redirected to pensions at the end of the fiscal year. In recent years, transfers from the ITRF to the General Revenue Fund have exceeded budgeted levels, providing a boost to state revenues that would effectively be eliminated by Pritzker’s pension plan. At a time when federal cuts to the Supplemental Nutrition Assistance Program (SNAP) and Medicaid are expected to put strain on upcoming state budgets, Pritzker’s plan could prove difficult to pass the General Assembly. The plan also does not address likely opposition from public sector unions, who would want new pension funding sources tied to benefit increases for Tier 2 employees.

Pension Buyout Program Extension

In addition to the ITRF surplus pension funding provisions, Pritzker also proposed extending the state’s pension buyout program by two years through FY 2028. Extending the program through FY 2028 would reduce the state’s unfunded pension liabilities by an estimated $1.4B—a positive but relatively minimal impact in the context of over $144B in unfunded liability systemwide. Since their inception in FY 2018, pension buyout programs have reduced unfunded liability by an estimated $2.9B. Buyout programs have already been extended twice since 2018, making another extension likely as part of the FY 2027 budget package.

Important Upcoming Dates – Statewide

February 18 – Governor’s State of the State and Budget Address

March 13 – Initial Chamber Committee Deadline (Senate)

March 27 – Initial Chamber Committee Deadline (House)

April 17 – Initial Chamber Third Reading Deadline

May 8 – Opposite Chamber Committee Deadline

May 22 – Opposite Chamber Third Reading Deadline

May 31 – Adjournment

In the News

Pritzker puts a price tag on federal cuts looming over Illinois budget – Crain’s Chicago Business, February 6, 2026

As Gov. JB Pritzker prepares to unveil his next budget, he’s got good news and bad news. The hit this year from tax-law changes passed by Congress isn’t as bad as feared. That’s because legislators took steps to decouple some of the aspects of the state tax code from federal regulations.

Illinois attorney general wins state’s first civil hate crime lawsuit – Capitol News Illinois, February 5, 2026

The win came among dozens of lawsuits the state has filed against the Trump administration in the past year.

Illinois insurers clash with states over regulation as profits soar – Crain’s Chicago Business, February 5, 2026

Illinois insurers State Farm and Allstate are putting on a full-court press when it comes to regulation they say is hampering their ability to lower prices for customers. But while State Farm is asking for less, Allstate wants more.

Fine proposes measure to ban former ICE agents from being hired by Illinois law enforcement agencies – The Daily Line, February 5, 2026

State lawmakers could consider a bill this spring to bar former employees of U.S. Immigration and Customs Enforcement (ICE) from being hired by Illinois law enforcement agencies.

Ahead of midterms, Illinois’ GOP members of Congress question the state’s ‘election integrity’ – Chicago Sun-Times, February 4, 2026

Amid President Donald Trump’s push to nationalize elections in 15 states, Illinois’ three Republican members of Congress expressed strong concerns this week about the Illinois State Board of Elections’ commitment to the integrity and accuracy of its voter rolls.

Advocates call for stronger paid leave policies in Illinois – Audacy, February 4, 2026

According to an annual report from the organization titled “Paid Leave Means a Stronger Nation” five million workers lack access to paid family leave through their job and 62% of Illinoisans can’t access unpaid leave under the FMLA. “We found that people in Illinois are losing $2.4 billion in wages every year when they need to take leave and don’t have pay or only have partial pay,” said Jessica Mason, Senior Policy Analyst for Economic Justice for the NPWF.

OPINION: Market-based fix for Chicago police and fire pensions – Crain’s Chicago Business, February 4, 2026

In 2018, Illinois enacted voluntary pension buyout legislation for government workers. Years later, the state’s buyout program has quietly saved billions while giving retirees more options. It’s time to offer Chicago police and firefighters the same choice the state gave its workers.

Pritzker revives proposal to fully pension liability by 2048 – The Daily Line, February 4, 2026

Gov. JB Pritzker is reviving a 2024 proposal to fully fund Illinois’ pensions by 2048 and proposing a two-year extension to the state’s pension buyout program.

Illinois Rewilding Law, first in US, a step toward state wetland protection – Chicago Tribune, February 4, 2026

As sweeping changes to the federal Clean Water Act in recent years have weakened protections for wetlands, Illinois has become the first state in the nation to officially recognize a conservation tactic known as rewilding.

Illinois joins World Health Organization network – Chicago Tribune, February 3, 2026

Illinois is joining a network of the World Health Organization in hopes of better positioning the state to handle potential health threats, following the U.S. withdrawal from the group last month.

Illinois bill would expand voter registration chances for students – NBC 5, February 2, 2026

House Bill 4339 is known as the Jesse Jackson, Sr., Young Voter Empowerment Law, and if passed it would require Illinois high schools to provide students with opportunities to register to vote.

Acting CTA chief lays out priorities – Chicago Tribune, February 2, 2026

Leerhsen sat down with the Tribune for a wide-ranging interview last week as she wrapped up her first year on the job. The CTA’s future in many ways looks brighter than it did a year ago. Most notably, state lawmakers last fall approved a massive transit funding package that will raise $1.5 billion for public transportation each year, averting a fiscal catastrophe that could have required the CTA to institute drastic service cuts and lay off thousands of workers.

Lawmaker, officer: ‘Blue Envelope” could help navigate autism during stops – The Center Square, January 31, 2026

An Illinois lawmaker who also serves in law enforcement says proposed legislation creating a “Blue Envelope” program for autistic drivers could improve communication during traffic stops, though questions remain about training and implementation.

Illinois pushes to move up 2028 Democratic primary; hurdles remain – Chicago Tribune, January 31, 2026

The Rules and Bylaws Committee chose to advance all 12 states, including Illinois, that applied to be one of up to five states in the early, pre-Super Tuesday window of the primary process. The states will now make in-person presentations to panel members this spring to make the case for their selection.

IL Accountability Commission chair: “People need to be prosecuted” – The Center Square, January 30, 2026

The Illinois Accountability Commission is studying changes in federal immigration law enforcement after President Donald Trump’s border czar promised improvements.

Cardenas faces assessor-backed former Friends of the Parks director in Board of Review District 1 – The Daily Line, February 6, 2026

Cook County Board of Review Comm. George Cardenas (D-1) is facing a primary challenge this spring from Juanita Irizarry, the former executive director of Friends of the Parks. While Cardenas has accepted funding from property tax attorneys and consultants, Irizarry has sworn off the practice but is backed by the county assessor, who has frequently criticized the Board of Review.

City to award what it calls the biggest U.S. airport concessions deal ever – Crain’s Chicago Business, February 6, 2026

Chicago received more than 100 bids for concessions in the main domestic terminals at O’Hare International Airport, and it expects to begin awarding contracts by the end of March, Aviation Commissioner Michael McMurray said yesterday.

Johnson says ICE executive order not intended to step on State’s Attorney’s jurisdiction – The Daily Line, February 5, 2026

Mayor Brandon Johnson this week insisted his office was not trying to usurp decision making about felony charges through the issuance of his “ICE on Notice” executive order, which directs the Chicago Police Department (CPD) to investigate and report alleged instances of illegal behavior by federal agents with U.S. Immigration and Customs Enforcement and other agencies to the Cook County State’s Attorney’s Office.

Chicago banks bullish after loan growth drives strong Q4 – Crain’s Chicago Business, February 5, 2026

Chicago banks posted strong profit growth in the fourth quarter as loan demand returned, and expectations are high for the year ahead even as uncertainty on interest rates looms.

Mayor Brandon Johnson’s public market plan slows to a crawl – Chicago Tribune, February 5, 2026

Mayor Brandon Johnson’s marquee plan to increase access to fresh groceries on the city’s South and West sides — a plan that initially called for a city-owned grocery store and later evolved into a proposed year-round market — appears to have slowed to a crawl.

Mayor Brandon Johnson heads to budget opponent’s ward to continue fight – Chicago Tribune, February 4, 2026

Mayor Brandon Johnson held a South Side town hall Tuesday evening to again hammer the city budget, the latest score-settling between him and the City Council bloc that passed its own plan in December after rejecting key parts of his proposal.

Chicago schools, transit, public housing remain rudderless under Mayor Brandon Johnson – Chicago Tribune, February 4, 2026

Chicago’s schools, its train and bus system and its public housing agency have all been without permanent leaders for at least a year now under Mayor Brandon Johnson, complicating their mission to deliver essential services without someone setting clear goals and funding priorities at the top.

Mayor Brandon Johnson says it’s up to Cook County state’s attorney to prosecute federal agents – Chicago Tribune, February 3, 2026

Mayor Brandon Johnson on Tuesday said it’s now up to Cook County state’s attorney Eileen O’Neill Burke to decide whether to prosecute federal immigration agents for crimes they committed in Chicago, after he signed an executive order he said lays the groundwork for the unprecedented move.

Plan for 28-story apartment tower adds to growing number of high-rises in Lincoln Park – Crain’s Chicago Business, February 3, 2026

A local development team is planning a 28-story apartment tower in an area of Lincoln Park that’s seeing more and more high-rises.

Cook County state’s attorney’s office reviewing mayoral directive – Chicago Tribune, February 2, 2026

The Cook County state’s attorney’s office on Monday said “a thorough analysis is being conducted” to assess the legality of a mayoral executive order that directs Chicago police to investigate potential wrongdoing by immigration agents, after the weekend signing was overshadowed by a political brouhaha due to social media pushback from the county’s top prosecutor.

The Chicago Teachers’ Mystery Audits – Wall Street Journal, February 1, 2026

The Chicago Teachers Union (CTU) has resisted making its financial audits public, and we are starting to learn why. The union recently produced audits going back to 2020, and the records show that its finances haven’t always received a clean slate by its official independent auditor.

Stricter Great Lakes freighter rules demanded for invasives – Chicago Tribune, February 1, 2026

In December, the law and policy center and three other environmental groups filed a petition in D.C.’s U.S. Circuit Court of Appeals calling on the EPA to include existing freighters in all of the new standards, arguing that lax regulations have contributed to the spread of invasive species nationwide. The same month, the attorneys general of Illinois, Michigan and Vermont also filed an amicus brief in support of the resolution.

Chicago bank fails, becoming first in nation to go under in 2026 – Chicago Sun-Times, January 31, 2026

State regulators closed Metropolitan Capital Bank & Trust on Friday, marking the first bank failure in the United States in 2026 and Chicago’s second in as many years.

Mayor Johnson Signs Executive Order Designed to Lay ‘Groundwork’ to Prosecute Federal Agents for Actions During Immigration Raids – WTTW, January 31, 2026

Mayor Brandon Johnson signed an executive order on Saturday that he said would lay “the groundwork to prosecute Immigration and Customs Enforcement and Border Patrol agents for criminal misconduct.”

Chicago bonds struggle amid Johnson-City Council budget fight – Crain’s Chicago Business, January 30, 2026

Chicago’s general obligation bonds are struggling in the market amid lingering tension between Mayor Brandon Johnson and the City Council over the 2026 budget that could be causing “headline risk,” according to analysts.