Moody’s Upgrades Illinois’ Credit Rating to A1

On August 26, Moody’s Ratings upgraded Illinois’ general obligation (GO) bond and Build Illinois sales tax bond rating from A2 to A1 with a stable outlook. The upgrade follows a series of meetings during the week of August 17 between the Pritzker administration and all three major credit rating agencies ahead of the state’s next GO bond sale, planned for late September. This marks the highest credit rating received by the state from Moody’s since December 2011. Following the two-year budget impasse under then-Gov. Bruce Rauner, Illinois’ bond rating had fallen to just one notch above junk status. Since June 2021, the state has received 11 consecutive credit rating upgrades under Gov. JB Pritzker.

 

Moody’s described the upgrade as driven by “realized and expected continued improvement in the state’s financial metrics.” The rating agency cited governance as a key factor for the upgrade, noting that eight consecutive on-time balanced budgets and consistently conservative fiscal management have led to solid reserves and increased confidence in the state’s ability to navigate future budget pressures. The upgrade also reflects the elimination of the state’s bill backlog, growth of the rainy-day fund to over $2.5B, and the recent extension of the state’s pension buyout program through FY 2028.

 

Gov. Pritzker stated, “Moody’s latest upgrade returns Illinois to its highest rating in nearly 15 years and reflects the tremendous financial progress we have made since taking office. With the General Assembly as a committed governing partner, we have moved Illinois from years of fiscal instability to its strongest financial position in decades.”

 

Despite all the recent progress, Illinois continues to have the lowest bond rating of any state in the country. The next-closest state is New Jersey, which is rated A+ by both S&P Global Ratings and Fitch Ratings and Aa3 by Moody’s — one notch above Illinois by Moody’s and two notches above Illinois by S&P and Fitch. Moody’s pointed to the state’s high fixed costs as reason not to rate Illinois higher at this time, driven by large unfunded pension liabilities, a constitutional prohibition preventing the reduction of pension benefits, and ever-growing annual education and healthcare spending. These high fixed costs make Illinois particularly susceptible to changes in economic conditions. Even though the state has grown a rainy-day fund from nothing, current reserves still represent less than 5% of the state’s estimated FY 2027 budget revenues.

 

Notably, Moody’s A1 rating now sits two notches above where S&P and Fitch rate Illinois GO bonds. S&P last upgraded Illinois’ bond rating from BBB+ to A- in February 2023, and Fitch last upgraded also from BBB+ to A- in November 2023. Both agencies currently maintain Illinois’ GO bonds at A- with a stable outlook, the equivalent of A3 on Moody’s scale.

 

NITA Board Appointments

Public Act 104-457, signed into law in December 2025, creates The Northern Illinois Transit Authority (NITA) Act. The Act is a comprehensive transit reform package creating a new regional authority, NITA, to replace the outgoing Regional Transportation Authority (RTA)’s oversight of the Chicago Transit Authority (CTA), Metra Commuter Rail, and Pace Suburban Bus. It provides approximately $1.5B annually for transit and associated infrastructure, including capital projects and tollways statewide, largely funded through redirected revenues and board-approved regional taxing authority. In 2026, the General Assembly passed and Gov. Pritzker signedPublic Act 104-543as a trailer to the original NITA Act, making a variety of changes to clean up language and correct discrepancies.

 

NITA will assume certain individual service-board functions (budgeting, scheduling, capital planning) and work to unify services, ticketing, and safety across the entire regional network. Across the entire network, NITA aims to improve service, address budget deficits, avoid fare increases, and better connect northeastern Illinois region. Beyond the Chicago area, the NITA Act will provide millions in new funding for downstate transportation agencies.

 

NITA’s 20-member board takes effect September 1, 2026, with its first meeting scheduled for September 10. 17 members will serve on both the NITA board and one of the individual service boards. See below for the full list of board appointments.

 

Governor Pritzker’s Appointees(pending Illinois State Senate confirmation):

• Bashir Qaasim— NITA & Metra Boards; Vice President at The Whole Group
• Nedra Sims Fears— NITA & CTA Boards; Executive Director of The Greater Chatham Initiative
• Nirali Shah— NITA Board; Senior Director of Procurement and Culture, Impact, and Opportunity at the Obama Foundation
• Rosa Ortiz— NITA & Pace Boards; urban planner and founder of 3e. Studio
• Vanessa Uribe— NITA Board; Associate Vice President for People and Operations at The Chicago Community Trust

 

Mayor Johnson’s Appointees(approved by City Council):

• Lester Barclay— NITA & CTA Boards; attorney and current CTA Board Chair
• Oswaldo Alvarez— NITA & CTA Boards; Executive Director of the Illinois Legislative Latino Caucus Foundation
• Dennis Mondero— NITA & Metra Boards; former Executive Director of the Chinese Mutual Aid Association
• Natasha Jenkins— NITA & Pace Boards; Senior Attorney at Clark Hill PLC
• Dee Atkins— NITA Board; Chief of Community Engagement and Equity at Thresholds

 

Cook County Board President Preckwinkle’s Appointees(approved by Cook County Board):

• Thomas Kotarac— NITA & CTA Boards; Senior Vice President of the Civic Committee of the Commercial Club of Chicago
• Diane Williams— NITA & Metra Boards; former President of the Safer Foundation
• Rory Hoskins— NITA & Pace Boards; Mayor of the Village of Forest Park
• Romayne Brown— NITA & Metra Boards; former CTA Vice President of Rail Operations
• Luis Montgomery— NITA & Pace Boards; transportation and infrastructure consultant at MacKay

 

Collar County Appointees(approved by respective county boards):

• DuPage County, David Pileski— NITA & Pace Boards; DuPage County; Mayor of Roselle
• Kane County, Brian Dahl– NITA & Pace Boards; former County Board member and President of the Fox Valley Building and Construction Trades Council
• Lake County, Gary Gorndon— NITA & Metra Boards; Lake County; Chief Financial and Administrative Officer at the Shedd Aquarium
• McHenry County, Brian Sager– NITA & Metra Boards; former Mayor of Woodstock
• Will County, John Noak— NITA & Pace Boards; Mayor of Romeoville

 

On Tuesday, August 25, at its final meeting before NITA assumes oversight on September 1, the RTA Board approved its 2027 projected operating funding totaling just over $4B. All three service providers received significant year-over-year funding increases, with CTA receiving over $2B in funding (up 29.6%); Metra receiving $943M (up 37.6%); and Pace receiving $335M (up 19.9%). An additional $2.1B is projected to be spent on capital projects in 2027. NITA will open its budget process with public engagement in September. Service boards must submit proposals by October 2, with a final adoption vote scheduled for December 10.

 

Bill Action Update

As of Wednesday, August 27, Gov. JB Pritzker ha​d signed every bill passed in the 2026 regular session of the Illinois General Assembly into law.

 

Important Upcoming Dates – Statewide

November 3– Illinois General Election

November 17-19– Veto Session Week 1

December 1-3– Veto Session Week 2

 

In the News

Illinois to receive up to $768M in Meta settlement over teen social media addiction–Capitol News Illinois,August 27, 2026

Illinois will receive up to $768 million from a multi-state $17.1 billion settlement with social media giant Meta, the parent company of Facebook and Instagram — the culmination of a three-year legal battle brought by state attorneys general.

Roger Goodell says Illinois still has an opportunity to keep the Bears–NBC Sports, August 27, 2026

Despite the Bears saying last month that they are moving forward with plans to build a new stadium in Indiana, NFL Commissioner Roger Goodell says Illinois is not out of the running.

 

Rating Action: Moody’s Ratings upgrades State of Illinois to A1 from A2, all ratings one notch and assigns A1 to new GOs; outlook stable–Moody’s Ratings, August 26, 2026

Moody’s Ratings (Moody’s) has upgraded to A1 from A2 the issuer rating of the State of Illinois. We have also upgraded to A1 from A2 the ratings on the state’s general obligation bonds and its Build Illinois sales tax bonds. We have also upgraded to A3 from Baa1 the rating on Metropolitan Pier & Exposition Authority, IL bonds that are partially paid with state appropriations. The outlook is stable.

 

Illinois attorney general joins suit against Postal Service over mail voting rules–Capitol News Illinois, August 26, 2026

Case follows Supreme Court ruling allowing Trump administration to proceed with restrictions.

 

Bailey implores Republicans to improve turnout as he plans to shift focus to Chicago–Capitol News Illinois, August 26, 2026

Republican nominee for governor says late August downstate tour is last of the campaign.

 

Gov. Pritzker Continues Push for PJM Accountability and Governance Reform–Office of Governor JB Pritzker, August 26, 2026

Governor calls for stronger state oversight and ratepayer protection as severe storms underscore the need for grid reliability.

RTA board approves 2027 funding amounts for Chicago-area transit–The Daily Line, August 26, 2026

The final meeting of the Regional Transportation Authority’s (RTA) board of directors highlighted some of the areas of improvement for Chicago-area transit the new governing authority will look to tackle — starting with the 2027 budget. 

 

Ammonses’ court case reassigned to Springfield-based federal judge–The News-Gazette, August 26, 2026

The federal case against state Rep. Carol Ammons and Champaign County Clerk and Recorder Aaron Ammons has been reassigned to U.S. District Judge Colleen Lawless, who is based in Springfield — meaning that the high-profile trial could take place in the state capitol.

 

Gov. Pritzker Launches Illinois Opportunity Zones 2.0 to Drive Investment in Communities Statewide–Office of Governor JB Pritzker, August 25, 2026

Today, Governor JB Pritzker and the Illinois Department of Commerce and Economic Opportunity (DCEO) launched Illinois’ Opportunity Zones 2.0 – a statewide initiative to identify and nominate the next group of federally designated Opportunity Zones that will help attract private investment to communities across Illinois.

Supreme Court sides with Trump administration on mail voting restrictions ahead of midterms–Chicago Sun-Times, August 24, 2026

It remains unclear how much can be implemented before the fast-approaching midterm elections. The U.S. Postal Service laid out its plan for implementing the order last week, but time is running short to impose major changes.

 

Trials for Aaron and Carol Ammons delayed to November–WAND, August 24, 2026

The federal trials for Champaign County Clerk Aaron Ammons and Illinois State Rep. Carol Ammons (D-Urbana) have been postponed until November, with their rescheduled pretrial conferences now landing on Election Day.

 

State Rep accused of sexual harassment, office drug use by former staffer–The Center Square, August 24, 2026

State Rep. Amy Murri Briel, D-Ottowa, is the latest lawmaker subject to allegations of ethics violations and inappropriate behavior in office after a former staffer went public with allegations including drug use and sexual harassment.

 

Expert says Illinois politics are to blame for failure to secure stadium for Chicago Bears in state–CBS News, August 23, 2026

An expert blames Illinois lawmakers and “internecine political problems” for the failure to seal a deal for a new stadium within the state for the Chicago Bears.

 

Illinois State Fair Recap: Democrats and Republicans rally in Springfield–WGN9, August 21, 2026

Illinois politicians stopped by the state fair this week to kick off the final sprint to the November election. Democrats are looking for another dominant performance at the ballot box, with Governor JB Pritzker pumping $65 million into his campaign fund.

 

Third Dem exits House ‘accountability’ working group–The Center Square, August 21, 2026

At the Illinois State Fair this week, controversy surrounding ethics, transparency and complaints against lawmakers followed politicians from the State Capitol to the state fairgrounds just 3 miles north.

 

US House Minority Leader Jeffries visits Chicago as Democrats push to regain House majority–ABC7 Chicago, August 21, 2026

House Democratic Leader Hakeem Jeffries visited Chicago on Friday as part of a national fundraising tour, urging supporters to stay focused on affordability concerns and the party’s effort to flip five House seats in November.

                     

Alexi Giannoulias says he won’t raise property taxes if elected Chicago mayor–Chicago Tribune, August 27, 2026

Illinois Secretary of State Alexi Giannoulias vowed Thursday to hold the line on property taxes if elected Chicago mayor, saying instead the path to righting the city’s fiscal ship goes through Springfield.

United CEO says O’Hare’s two-airline era will end — and Chicago will be better off–Crain’s Chicago Business, August 27, 2026

United Airlines CEO Scott Kirby predicts O’Hare eventually will become a one-hub airport rather than the duopoly it is today — something he argues will be good for the city in the long run as it competes against rivals such as Dallas-Fort Worth and Atlanta.

 

Chicago program that set aside billions for development has left poor areas behind, UIC study finds–Chicago Sun-Times, August 26, 2026

The research found that the TIF tax program intended to revive blighted neighborhoods has helped Downtown but done much less for poor neighborhoods on the South Side and West Side

 

Johnson puts city contractors on notice over ties to ICE–Crain’s Chicago Business, August 26, 2026

Companies that work with federal immigration authorities could face new scrutiny over their city contracts under an executive order signed today by Mayor Brandon Johnson.

Mayor to plug 2026 budget shortfall by refinancing debt, tapping ARPA and grants administration funds–The Daily Line, August 26, 2026

Mayor Brandon Johnson on Tuesday announced a plan to close a shortfall in the 2026 budget without resorting to layoffs.

 

Mail ballots are secure, Illinois election officials stress after Supreme Court ruling–Chicago Sun-Times, August 25, 2026

As courts continue to decide the fate of President Donald Trump’s executive order restricting mail-in ballots, Cook County and Illinois election officials say they’re going full speed on their preparations for early voting and vote-by-mail ballots in the November election. 

 

Illinois Promised To Protect Immigrants. Local Officials Helped Deport Them Anyway–Block Club Chicago, August 25, 2026

In over a third of Illinois counties, cops, sheriffs, and even prosecutors helped federal immigration agents route at least 150 people into the deportation system since Trump returned to office, despite a state law intended to prevent such collaboration.

 

‘O’Hare Flyer’ would whisk travelers between airport, Chicago Loop in 15 minutes–Capitol News, August 25, 2026

A prominent Statehouse lobbyist is the organizing force behind a $2.25 billion proposal to buildan express trainline that’d cut the travel time between Downtown Chicago and O’Hare International Airport by nearly two-thirds.

O’Hare to the Loop in 15 minutes? This company thinks it can finally bring fast rail to Chicago–Chicago Sun-Times, August 25, 2026

Where Elon Musk and former Mayor Rahm Emanuel failed, owners of the O’Hare Flyer envision battery-powered trains leaving every quarter hour between the Old Post Office and O’Hare on former freight tracks.

 

Chicago’s Democratic Socialists Back 2 City Council Challengers, While Declining to Endorse 2 Incumbents–WTTW, August 21, 2026

Two Chicago City Council hopefuls have won the backing of the Chicago chapter of the Democratic Socialists of America — but the expanding organization declined to endorse two incumbents in other races, a decision that could complicate efforts by the group to capitalize on the growing popularity of socialist candidates.