{"id":30826,"date":"2026-02-16T15:24:11","date_gmt":"2026-02-16T21:24:11","guid":{"rendered":"https:\/\/www.thexradio.com\/news\/?p=30826"},"modified":"2026-02-16T15:24:11","modified_gmt":"2026-02-16T21:24:11","slug":"pritzker-to-present-8th-budget-as-illinois-faces-federal-budget-uncertainty","status":"publish","type":"post","link":"https:\/\/www.thexradio.com\/news\/local-news\/30826-pritzker-to-present-8th-budget-as-illinois-faces-federal-budget-uncertainty\/","title":{"rendered":"Pritzker to Present 8th Budget as Illinois Faces Federal Budget Uncertainty"},"content":{"rendered":"<div class=\"pdfprnt-buttons pdfprnt-buttons-post pdfprnt-top-right\"><a href=\"javascript: window.print()\" class=\"pdfprnt-button pdfprnt-button-print\" target=\"_self\" ><img decoding=\"async\" src=\"https:\/\/www.thexradio.com\/news\/wp-content\/plugins\/pdf-print\/images\/print.png\" alt=\"image_print\" title=\"Print Content\" \/><span class=\"pdfprnt-button-title pdfprnt-button-print-title\">Print<\/span><\/a><\/div><p><i><span style=\"font-weight: 400;\">Democrats seeking new taxes while Republicans call for limiting spending\u00a0<\/span><\/i><\/p>\n<p><span style=\"font-weight: 400;\">By BEN SZALINSKI<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Capitol News Illinois<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><a href=\"mailto:bszalinski@capitolnewsillinois.com\"><span style=\"font-weight: 400;\">bszalinski@capitolnewsillinois.com<\/span><\/a><\/p>\n<p><b>Article Summary<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Gov. JB Pritzker will present his eighth budget on Wednesday and outline a plan to deal with limited revenue growth and significant uncertainty over the future of federal funding for the state.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Several policies from the federal government raise costs for the state or diminish how much money Illinois will receive, causing forecasters to project growing deficits in the coming years.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A recent economic forecast expects the state\u2019s economy to struggle under the weight of tariffs and cuts to social services.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Progressive lawmakers want the governor to raise taxes on corporations and billionaires while Republicans are hoping to keep spending flat in fiscal year 2027.<\/span><\/li>\n<\/ul>\n<p><i><span style=\"font-weight: 400;\">This summary was written by the reporters and editors who worked on this story.\u00a0<\/span><\/i><\/p>\n<p><span style=\"font-weight: 400;\">SPRINGFIELD \u2014 Gov. JB Pritzker will stand in front of the General Assembly on Wednesday in a familiar position: confronting tremendous uncertainty over the state\u2019s financial future.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Pritzker will present his eighth budget as he seeks reelection to a rare third term and becomes a growing national presence as a possible 2028 presidential candidate and one of President Donald Trump\u2019s loudest critics.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The Trump administration has put Illinois and other states whose leaders disagree with his vision in the crosshairs, targeting them for massive cuts to federal funding. In the last two months alone, that has included a $1 billion child care funding cut that\u2019s temporarily been <\/span><a href=\"https:\/\/capitolnewsillinois.com\/news\/judge-blocks-trumps-10b-child-care-funding-freeze-that-targeted-blue-states-including-illinois\/\"><span style=\"font-weight: 400;\">blocked by the courts<\/span><\/a><span style=\"font-weight: 400;\"> and $100 million in threatened <\/span><a href=\"https:\/\/www.nytimes.com\/2026\/02\/09\/health\/trump-public-health-cuts-california.html\"><span style=\"font-weight: 400;\">health care funding<\/span><\/a><span style=\"font-weight: 400;\"> cuts.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">At the same time, the economy has been shaken by Trump\u2019s tariff policies and Congress passed a sweeping domestic policy bill, known as the One Big Beautiful Bill Act, that will alter the fiscal landscape for states across the country. That measure cuts eligibility for Medicaid and the <\/span><a href=\"https:\/\/capitolnewsillinois.com\/news\/new-snap-work-requirements-go-into-effect-feb-1-threatening-recipient-eligibility\/\"><span style=\"font-weight: 400;\">Supplemental Nutrition Assistance Program<\/span><\/a><span style=\"font-weight: 400;\">, increases administrative costs and reduces what the state can collect in <\/span><a href=\"https:\/\/capitolnewsillinois.com\/news\/illinois-medicaid-program-faces-looming-funding-crisis-due-to-federal-changes\/\"><span style=\"font-weight: 400;\">provider taxes<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The ever-changing federal funding landscape presents lawmakers and Pritzker with a murky picture of the future \u2014 one that can change as fast as the president can send a social media post or a judge can issue a restraining order.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But the state constitution requires lawmakers to pass a balanced budget, and Pritzker will outline his plan for one on Wednesday.\u00a0 His annual budget address sets up months of negotiations \u2014 mostly between supermajority Democrats. They\u2019ll try to balance their desires to fund programs while revenues \u2014 both from the feds and the state\u2019s base sources \u2014 are projected to flatten at best.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Rep. Kam Buckner, a top House Democrat budget negotiator from Chicago, said one of the goals of this year\u2019s budget will be to play \u201cdefense.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cIt\u2019s hard when the biggest variable in the budget is not something that you can control,\u201d he said, referring to federal funding. \u201cAnd with this president, the volatility isn\u2019t a possibility; it\u2019s a given.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Pritzker and his team have already started setting expectations for a conservative budget, telling agency leaders in <\/span><a href=\"https:\/\/capitolnewsillinois.com\/wp-content\/uploads\/2026\/01\/Budget-Reserves-Letter.pdf\"><span style=\"font-weight: 400;\">memos<\/span><\/a><span style=\"font-weight: 400;\"> and signaling to legislators that it will be difficult for the state to fulfill funding requests this year.\u00a0<\/span><\/p>\n<p><b>Federal impacts<\/b><\/p>\n<p><span style=\"font-weight: 400;\">The Governor\u2019s Office of Management and Budget <\/span><a href=\"https:\/\/budget.illinois.gov\/content\/dam\/soi\/en\/web\/budget\/documents\/economic-and-fiscal-policy-reports\/Economic_and_Fiscal_Policy_Report_FY26_10.9.25.pdf\"><span style=\"font-weight: 400;\">estimated in October<\/span><\/a><span style=\"font-weight: 400;\"> that lawmakers will have to close a $2.2 billion deficit for fiscal year 2027, which begins July 1. Much of that deficit is driven by the state\u2019s own spending exceeding projected revenue. But GOMB projected changes at the federal level are making the problem more challenging and will further exacerbate deficits in the coming years.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In the short-term, Pritzker\u2019s budget office estimates income tax revenue for the state will be lower because of federal tax code changes and some administrative costs for food assistance programs will be required this year.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Most of the impacts of Trump\u2019s big bill won\u2019t be felt until FY28. But that doesn\u2019t mean it won\u2019t factor into this year\u2019s process.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cYou can&#8217;t ignore what is coming down the road, and so we should expect and work towards a proactive plan for next year\u2019s gap starting now, not after May, because the gap is being driven by forces that won\u2019t wait for the spring,\u201d Buckner said.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">BUCKNER<\/span><\/p>\n<p><b>Read more: <\/b><a href=\"https:\/\/capitolnewsillinois.com\/news\/pritzkers-new-budget-report-could-set-tone-for-conservative-2027-spending-plan\/\"><b>Pritzker\u2019s new budget report could set tone for conservative 2027 spending plan<\/b><\/a><b> | <\/b><a href=\"https:\/\/capitolnewsillinois.com\/news\/judge-blocks-trumps-10b-child-care-funding-freeze-that-targeted-blue-states-including-illinois\/\"><b>Judge blocks Trump\u2019s $10B child care funding freeze that targeted blue states, including Illinois<\/b><\/a><\/p>\n<p><span style=\"font-weight: 400;\">Dwindling federal funding is already starting to appear in the state\u2019s balance sheets. The Commission on Government Forecasting and Accountability\u2019s <\/span><a href=\"https:\/\/capitolnewsillinois.us11.list-manage.com\/track\/click?u=e56e9828a85a66845e18ee97f&amp;id=5d99753a01&amp;e=13c59c0b21\"><span style=\"font-weight: 400;\">January report<\/span><\/a><span style=\"font-weight: 400;\"> shows revenue was 3% lower in January compared to the same month in 2025, largely because of decreased federal funding.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Federal funding to Illinois has declined for three consecutive months, though the commission cautioned there could be a variety of reasons for that, such as the timing of payments. In any case, federal funding was 35% lower this January than last and is now down 8% for the year. Overall revenue for the year is still up 3.5%.<\/span><\/p>\n<p><b>Economic conditions<\/b><\/p>\n<p><span style=\"font-weight: 400;\">It\u2019s not just federal funding that presents a challenge for lawmakers \u2014 the overall health of the economy does as well. A <\/span><a href=\"https:\/\/cgfa.ilga.gov\/Upload\/2026StofILEconomicForecast%20Moody's.pdf\"><span style=\"font-weight: 400;\">forecast by Moody\u2019s Analytics<\/span><\/a><span style=\"font-weight: 400;\"> released last week set an ominous tone: \u201cIllinois\u2019 economy is in a precarious spot,\u201d and a weak economy ultimately makes it difficult for revenue to naturally grow.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cPotential budget shortfalls in Illinois and the city of Chicago mean lawmakers may need to consider a mix of revenue enhancements and spending adjustments, measures that could ultimately stifle consumer spending,\u201d the report said.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The forecast predicts employment will not grow or decline, and the economy will grow at a slower rate than other states because of outmigration, a shrinking tax base, and a massive long-term pension liability. Additionally, tariffs are hurting the state\u2019s manufacturers, and rural areas are suffering from both tariffs and higher farming costs.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cIllinois has a lot at stake, given its reliance on manufacturing and logistics and its above-average exposure to foreign trade,\u201d the report said.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Moody\u2019s said the results of Trump\u2019s big bill will be mixed by region, but the overall impact of the policy will be negative because it weakened social services.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">More broadly, Moody\u2019s notes an artificial intelligence bubble in the stock market could burst and trigger a recession.\u00a0<\/span><\/p>\n<p><b>Health care costs to balloon\u00a0<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Lawmakers could also consider taking proactive steps to absorb new health care costs and cuts set to take effect in the coming years.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Under a provision in Trump&#8217;s big bill \u2014 one that applies only to states like Illinois that expanded Medicaid eligibility under the Affordable Care Act \u2014 a 6% cap on the tax Illinois can charge health care providers will gradually be cut starting in FY28 until it reaches 3.5% in FY32.<\/span><\/p>\n<p><b>Read more: <\/b><a href=\"https:\/\/capitolnewsillinois.com\/news\/illinois-medicaid-program-faces-looming-funding-crisis-due-to-federal-changes\/\"><b>Illinois Medicaid program faces looming funding crisis due to federal changes<\/b><\/a><\/p>\n<p><span style=\"font-weight: 400;\">When the lower cap is combined with a decline in federal aid for Medicaid, the state could lose $1.7 billion annually by FY31, according to the governor\u2019s budget office.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The impending limits on Medicaid provider taxes will pose a significant challenge for lawmakers who will either have to find some other way to pay the state\u2019s share of the cost or adjust the program to fit within the new fiscal constraints.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Since the federal changes do not take effect for another year, it is possible lawmakers will not feel pressure to take immediate action in the upcoming legislative session.<\/span><\/p>\n<p><b>Current-year changes<\/b><\/p>\n<p><span style=\"font-weight: 400;\">The October GOMB report also revealed the state was on track to run a small deficit in the current fiscal year ending June 30, largely because the state\u2019s income tax code was tied to the federal level and Congress made changes that will ultimately lower tax revenue flowing into Illinois.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In response, lawmakers <\/span><a href=\"https:\/\/capitolnewsillinois.com\/news\/illinois-bill-decouples-state-federal-taxes-raising-revenue-and-angering-businesses\/\"><span style=\"font-weight: 400;\">decoupled<\/span><\/a><span style=\"font-weight: 400;\"> the state\u2019s tax code from the federal government in certain areas, which GOMB expects to reduce the deficit by $243 million. The state still faces a $587 million deficit because of the federal tax changes.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Pritzker has also asked several state agencies to <\/span><a href=\"https:\/\/capitolnewsillinois.com\/news\/illinois-to-withhold-nearly-500m-in-spending-citing-federal-uncertainty\/\"><span style=\"font-weight: 400;\">reserve nearly $500 million<\/span><\/a><span style=\"font-weight: 400;\"> in spending because of uncertainty over how revenue will shake out as federal funding remains in flux. The reserves largely focus on cost savings, such as forgoing hiring in certain agencies for the remainder of the fiscal year, reducing available grants and saving money on health insurance costs.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In the last two budgets, Pritzker and lawmakers have also relied on <\/span><a href=\"https:\/\/capitolnewsillinois.com\/news\/new-taxes-on-sports-bets-nicotine-products-as-democrats-pass-55-2b-budget\/\"><span style=\"font-weight: 400;\">targeted tax increases<\/span><\/a><span style=\"font-weight: 400;\">. Though the FY26 budget ultimately amounted to a $2 billion spending increase, most discretionary spending outside core areas increased by less than 1%. Pritzker also warned lawmakers last year that if they want to increase spending for a certain program, they must come up with a corresponding cut. Pritzker has also opposed <\/span><a href=\"https:\/\/capitolnewsillinois.com\/news\/pritzker-threatens-to-veto-any-budget-containing-broad-based-tax-increase\/\"><span style=\"font-weight: 400;\">broad tax increases<\/span><\/a><span style=\"font-weight: 400;\">, such as statewide sales and income tax hikes.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Senate Republican Leader John Curran, R-Downers Grove, said at a news conference earlier this month that he expects limited spending to continue in this year\u2019s proposal.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cYou saw the rollback on the health care for working-age population for undocumented immigrants last year,\u201d Curran said.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The Health Benefits for Immigrant Adults program was launched in 2021 and covered qualifying individuals aged 42-64 but was ended in this fiscal year\u2019s budget because it far <\/span><a href=\"https:\/\/capitolnewsillinois.com\/news\/audit-finds-illinois-noncitizen-health-care-programs-far-outstripped-original-cost-estimates\/\"><span style=\"font-weight: 400;\">outstripped initial estimates<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cThat was something that the governor, in his budget address, readily admitted that it was a mistake to go down that road, and the state could not afford that,\u201d Curran said. \u201cSo I think that process already started last year. I expect that to continue this year in this budget.\u201d<\/span><\/p>\n<p><b>What lawmakers want<\/b><\/p>\n<p><span style=\"font-weight: 400;\">A group of progressive Democrats want to raise taxes substantially to fill gaps in the budget. The $4 billion tax package calls for taxing the appreciation of billionaires\u2019 assets, a 10% tax on digital ads, increasing taxes on corporations&#8217; offshore earnings, and closing loopholes in the corporate tax code.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Lawmakers said at a news conference earlier this month that the taxes are necessary because businesses and wealthy Americans have benefited from tax policies in Washington.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cIf we don\u2019t fight back with taxing the ultra-wealthy, we\u2019re going to continue to chop services in order to balance budgets,\u201d Sen. Karina Villa, D-West Chicago, said.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Speaking to CNI, Buckner said any new revenue must be reliable for the state beyond one year and fair to taxpayers so they \u201care not the default state ATM.\u201d\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cWe got to create some certainty in this chaos and that means that we have to build a budget that can take a hit without passing the pain straight to families, hospitals, schools and local governments,\u201d Buckner said.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">ELIK<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Rep. Amy Elik, R-Godfrey, who leads budgeting for House Republicans, framed concerns about federal funding differently.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cIn my opinion, it is always volatile because you are relying on another level of government with programs that they may begin or end,\u201d Elik told Capitol News Illinois.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Elik said Republicans are worried Democrats will go to the taxpayers\u2019 well for more money.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cThey\u2019re not even ashamed or embarrassed anymore to say we need to raise taxes,\u201d Elik said. \u201cAnd so when they\u2019ve got so many people on board with that theory and concept, I\u2019m very, very concerned.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Republicans in the House have largely been shut out of budget negotiations for several years and Elik said she doesn\u2019t expect this year will be different, adding Republicans won\u2019t agree to vote for a budget before it is completed.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The House Democratic Women\u2019s Caucus said in a statement they are hoping to see the governor boost funding for social services that have been cut at the federal level and are \u201copen to potential revenue options that do not negatively or disparately impact the vulnerable populations we represent.\u201d<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><a href=\"https:\/\/capitolnewsillinois.com\/\"><i><span style=\"font-weight: 400;\">Capitol News Illinois<\/span><\/i><\/a><i><span style=\"font-weight: 400;\"> is a nonprofit, nonpartisan news service that distributes state government coverage to hundreds of news outlets statewide. It is funded primarily by the Illinois Press Foundation and the Robert R. McCormick Foundation.<\/span><\/i><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Democrats seeking new taxes while Republicans call for limiting spending\u00a0 By BEN SZALINSKI Capitol News Illinois bszalinski@capitolnewsillinois.com Article Summary Gov. JB Pritzker will present his eighth budget on Wednesday and [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":30827,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[19],"tags":[],"class_list":["post-30826","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-local-news"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Pritzker to Present 8th Budget as Illinois Faces Federal Budget Uncertainty - Effingham&#039;s News and Sports Leader, 979XFM and KJ Country 102.3<\/title>\n<meta name=\"description\" content=\"Effingham&#039;s News and Sports Leader\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.thexradio.com\/news\/local-news\/30826-pritzker-to-present-8th-budget-as-illinois-faces-federal-budget-uncertainty\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Pritzker to Present 8th Budget as Illinois Faces Federal Budget Uncertainty - 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