Illinois Legislative News
Third Reading Report: January 26, 2026
The House Convenes for 2026 Session
The House met for three days last week, spending most of its time debating non-binding resolutions on federal issues such as ICE, healthcare subsidies, childcare funding cuts, and tariffs. The chamber wrapped up Thursday morning and will not return until February 17. The Senate is also on a brief break, reconvening on February 3 for three days before returning again on February 17. Legislators in both chambers have until February 6 to file bills for this session.
GOMB Releases Update on Gov. Pritzker’s Executive Order Calling on State Agencies to Withhold 4% of Appropriated Funds
Last September, Gov. JB Pritzker signed Executive Order 2025-05, which directed most state agencies to identify and reserve up to 4% of their FY 2026 General Funds appropriations as a safeguard against federal funding changes and broader economic risk. The Executive Order also directed agencies to limit non-essential spending, purchases, and travel, and to prioritize essential roles in hiring. At the time of the order’s signing, the Governor’s Office of Management and Budget (GOMB) estimated that withholding 4% of state agency appropriations would result in savings of $301M. Besides counteracting federal government changes and economic uncertainty, the 4% holdback was designed to largely offset a required $303M continuing appropriation to the State Employees’ Retirement System (SERS), one of Illinois’ five state pension funds, due to an initial FY 2025 contribution that did not meet the statutory requirement.
On Thursday, January 22, GOMB released an update on progress toward the Executive Order, including a list of state agency FY 2026 General Funds reserve targets and approved amounts. State agencies identified a combined total of $481.6M in General Funds savings from reserves under the Executive Order, exceeding the originally projected amount by $180.6M. Below is a breakdown of the savings by service area.
- Healthcare and Human Services: $361.5M (includes $200M from HFS’ decision to forgo a planned transfer to the Healthcare Provider Relief Fund due to a lower-than-expected caseload)
- Higher Education: $30.5M (includes withholding of Gov. Pritzker’s 2% or $25.1M discretionary funding increase to state universities)
- Public Safety: $22.1M
- Economic Development, Environment & Culture: $10.3M
- Government Services: $57.2M
These savings were achieved through administrative efficiencies, staffing adjustments, lower-than-expected caseloads, and cost controls. GOMB noted in its press release that funding for pensions and K-12 education was not impacted.
Looking ahead, Gov. Pritzker is scheduled to deliver his State of the State and FY 2027 budget address on February 18, 2026. Despite stronger-than-expected revenues in the first half of FY 2026, federal cuts and annual spending growth, primarily in pensions, healthcare, and education, pose challenges the state will need to address in FY 2027.
Illinois Joins 11 States in Bid for Earlier 2028 Primary
Illinois Democrats are seeking to move the state’s 2028 primary election to an earlier date in an effort to give Illinois voters greater influence in selecting the next Democratic presidential nominee. Proponents argue Illinois’ primary should be near the front of the calendar because the state is the most demographically similar to the entire United States population, according to analysis from The Conversation in 2024. Considering Illinois’ racial, ethnic, age, gender, income, education, and occupational statistics, it is the state that compares most closely to the country overall. Proponents believe that demographically similar states have the best chance of representing the sentiments of the entire nation.
Illinois joined 11 other states in petitioning the Democratic National Committee (DNC) to hold their 2028 primaries on an earlier date to gain more influence. Currently, the Illinois primary election is slated for March 21, 2028. If the effort to move the primary earlier succeeds, this would not be the first time Illinois has moved its primary election. The state moved its presidential primary in 2008, when an earlier date helped bolster then-U.S. Senator Barack Obama’s campaign.
The petition renews speculation about Gov. JB Pritzker’s national ambitions, with some suggesting an early Illinois primary could help position him should he decide to enter the 2028 presidential race. While the DNC remains in the early stages of determining the primary calendar, party officials say the final lineup will be based on rigorous selection criteria.
Important Upcoming Dates – Statewide
February 6 – Bill Introduction Deadline
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
Illinois tightens its belt by $500M ahead of budget fights and federal cuts – Crain’s Chicago Business, January 22, 2026
The state of Illinois says it has come up with a nearly half-billion-dollar cushion against anticipated shortfalls and disruptions in federal funding. Gov. JB Pritzker told state agency leaders last fall to identify 4% in spending cuts.
Illinois targeted in Trump review of federal funds to Democratic states – Crain’s Chicago Business, January 22, 2026
The Trump administration has ordered a sweeping review of federal funding flowing to Illinois and 13 other Democratic-controlled states, raising fresh questions about potential disruptions to money supporting state government, local agencies, nonprofits and universities.
McCombie not in support of ‘millionaire tax,’ calls for more transparency around state spending – The Daily Line, January 22, 2026
Illinois’ House Republican leader is again calling for more transparency around state spending as the House legislative session kicks off in Springfield.
Affordability tops Illinois House agenda this session – WAND TV, January 21, 2026
Affordability is the top issue for Democrats and Republicans in the Illinois House this session. Welch said he wants to address homeowner insurance rates as escrow payments continue to rise. However, House GOP leaders said lawmakers can help Illinoisans by allowing people to benefit from President Donald Trump’s economic policies.
Illinois AG Kwame Raoul says state has filed more than 50 lawsuits against Donald Trump administration – ABC 7, January 20, 2026
Over the past 365 days, Illinois has filed more than 50 lawsuits. The attorney general said the state is locked in a series of legal battles with the Trump administration challenging everything from federal funding freezes to “aggressive and unconstitutional” immigration enforcement tactics.
Lawmakers Return to Springfield, Some Demand Focus – WLS, January 21, 2026
As the Illinois House convenes in Springfield, the Illinois Freedom Caucus is warning that Illinois families cannot afford a repeat of the political theater that dominated the Spring session in 2025.
Illinois House Republicans propose bill to make all felonies detainable under SAFE-T Act – The Daily Line, January 21, 2026
After Democratic leaders expressed they would be willing to make changes to Illinois pretrial release system, two House Republicans have introduced a measure that would include all felonies as detainable offenses.
Gov. JB Pritzker’s office inks new deal with outside lawyer to advise in Chicago Bears stadium talks – Chicago Tribune, January 21, 2026
Gov. JB Pritzker’s office signed a new $25,000 contract late last month with an outside attorney to continue advising the administration in negotiations with the Chicago Bears through the end of June as the NFL franchise seeks to pressure Springfield to act this spring on a proposal that would aid plans for a new stadium in Arlington Heights.
Bipartisan calls to bring no tax on tips to Illinois – Central Illinois Proud, January 19, 2026
Some state lawmakers are hoping to pass a bill to bring “no tax on tips” to Illinois after it decided to not enact the federal policy.
2 million Illinoisans eligible for automatic sealing of convictions – Chicago Tribune, January 16, 2026
An estimated 2 million Illinois residents who’ve served their sentences for nonviolent offenses will become eligible to have their state criminal records automatically sealed from public view beginning in 2029, under the so-called Clean Slate measure Gov. JB Pritzker signed into law Friday.
ICE hiring ban bill reignites SAFE-T Act fight at Illinois Capitol – The Center Square, January 16, 2026
A newly introduced bill that would bar former Immigration and Customs Enforcement agents from working in state and local law enforcement in Illinois is sparking intense debate, with supporters calling it a necessary accountability measure and critics warning it could worsen police shortages and undermine public safety.
Jury acquits Chicago man facing charge of soliciting murder of Border Patrol Cmdr. Bovino – Chicago Tribune, January 22, 2026
A federal jury on Thursday found a Chicago construction worker not guilty of charges he solicited the murder of Border Patrol Cmdr. Gregory Bovino, delivering a swift repudiation in a case the Trump administration had held up as evidence of violence toward immigration officials.
CTA to focus on safety, cleanliness and bus service improvements in 2026, acting president says – Chicago Tribune, January 22, 2026
The CTA will focus on safety, cleanliness and improvements to bus service in 2026, its acting president, Nora Leerhsen, said Thursday.
American signals it’s not backing down in O’Hare grudge match with United – Crain’s Chicago Business, January 22, 2026
American Airlines is adding routes at O’Hare, rejecting United CEO Scott Kirby’s claim that the carrier is losing money in Chicago and signaling it plans to keep expanding in one of the country’s most lucrative airline markets.
Chicago zoning leadership fight enters new phase – Crain’s Chicago Business, January 21, 2026
With Mayor Brandon Johnson and the City Council yet to reach a compromise over who should lead the Zoning Committee, the acting chair took the formal step today to elevate himself to the position.
Chicago paid $26.5 million in OT to ineligible employees, report says – Chicago Tribune, January 21, 2026
Chicago doled out $26.5 million in overtime in recent years to government employees who should not have gotten it, according to a report released Wednesday by the city’s inspector general.
Ald. Hopkins waters down curfew ordinance, again, to appease Mayor Brandon Johnson – Chicago Sun-Times, January 21, 2026
Ald. Brian Hopkins revised his teen curfew ordinance yet again Wednesday — this time to appease Mayor Brandon Johnson — but failed to get it through the City Council amid complaints it was more like a legislative placebo.
Unwilling to make ‘a bad deal even worse,’ Mayor Johnson drops out of competition to buy back parking meters – Chicago Sun-Times, January 20, 2026
After submitting an undisclosed bid, Mayor Brandon Johnson quickly learned that the asking price would have been at least triple the $1.15 billion that Chicago received from the 75-year lease in 2008. The leveraged buy-out would have required the City Council to “raise parking rates year after year,” the mayor said.
Logistics company expands HQ, eyes hiring run with move to River North – Crain’s Chicago Business, January 20, 2026
A logistics company that bolstered its Chicago headcount over the past few years has more than doubled its downtown office footprint to make room for what could be another 200 jobs in the city’s core.
Chicago weighs costly buyback of parking meter deal – Crain’s Chicago Business, January 18, 2026
Mayor Brandon Johnson is considering a costly bid to take back control of Chicago’s parking meters, a move that would reverse one of the city’s most infamous deals while exposing City Hall to fresh financial and political risk.
Well-funded potential challengers already circling Mayor Brandon Johnson – Chicago Tribune, January 18, 2026
A large and growing field of candidates is angling to take out Mayor Brandon Johnson, who is seen as very beatable. New campaign finance records showing a couple of likely challengers holding commanding leads in fundraising over the freshman incumbent drive home the tough battle he faces.
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Previous Reports
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