IVCA Provides Updates for State Legislative Issues – 01/07/2026
IVCA Illinois Legislative Report
David Stricklin, IVCA Legislative Liaison, Stricklin & Associates
LEGISLATURE READIES FOR RETURN TO SESSION
The Illinois General Assembly begins its work in 2026 with the Senate in session next week and the House the week following. Much of the activity in January will be organizational and preparatory when Governor Pritzker delivers his budget address February 18. Policy makers are wrestling with whether changes to federal programs will impact state spending and what consequences that will have for Illinois residents receiving those benefits.
FEDERAL GOVERNMENT WITHOLDS $1B FROM ILLINOIS
In Illinois, about $1 billion is being frozen that would normally go toward programs that help families pay for child care, support child care workers and help pay for other services, according to Gov. JB Pritzker’s office. The administration is also withholding funds meant for California, Colorado, Minnesota and New York.
RELATED:
* Tribune | Feds to award Illinois $193M next year for rural health care as part of Big Beautiful Bill Act, as state braces for Medicaid cuts.: The federal government is awarding Illinois $193 million next year to support rural health care — money that’s part of the One Big Beautiful Bill Act, but not enough to make up for Medicaid cuts from the measure, state health leaders say. Illinois asked the federal government for $200 million a year for each of the next five years in its application for the funds. […] The federal Centers for Medicare & Medicaid Services announced the award amounts for each state Monday, noting that states are getting an average of $200 million in the first year of funding. The largest amount of $281 million is going to Texas, and the smallest amount of $147 million is for New Jersey.
REVENUE FORECAST SUGGESTS CAUTION
Halfway through the current fiscal year and with a new budget being assembled for next year the Illinois agency which helps guide fiscal policy left this for policy makers to chew on: “a cautious approach to revenue expectations for the second half of FY26 remains warranted until additional clarity emerges through actual tax collections.”
RELATED
GRADUATED INCOME TAX REMAINS A LONGSHOT
AFTER FURTHER REVIEW SPEAKER STILL NOT CONVINCED BY BEARS
* Crain’s | Welch says Bears stadium bid collides with Springfield’s affordability agenda: The Bears aren’t the only ones who are at risk from Democrats’ renewed focus on affordability. Welch, like Gov. JB Pritzker, signaled an interest in insurance reform. “Everything’s going to come down around affordability issues. Folks are concerned about their homeowners insurance, their car insurance,” he said.