Illinois Democrats near $56B budget despite tax fights

Illinois Democrats – Democratic lawmakers in Springfield say they are nearing a nearly $56 billion state budget as the session runs out, moving to expand food assistance after federal cuts while weighing new revenue from prediction markets, cryptocurrency, and other digital indust

SPRINGFIELD — The clock was down to hours before the spring legislative session, and Democratic negotiators were trying to finish something that would shape daily life across Illinois: a nearly $56 billion state budget.

The blueprint being discussed Sunday night would raise food assistance in the wake of federal funding cuts. supporters say. while insisting it does not “burden” everyday working families. But it also points to a new set of taxes aimed at rapidly growing sectors that lawmakers say have benefited during a shaky economic stretch—prediction markets. cryptocurrency and fantasy sports—along with additional pressure on digital advertising revenue and large social media companies.

Even as leaders described the overall package as targeted, they were not yet banking on every proposed levy. Budget negotiators were expected to avoid assuming revenue from all the controversial taxes. a choice that would matter because those measures were widely expected to trigger legal challenges.

State Rep. Robyn Gabel. an Evanston Democrat and top budget negotiator. framed the deal as a response to a national environment that has left families squeezed. “We’ve constructed a budget that meets people’s most pressing needs. including key investments that allow Illinois to move forward in areas where Washington has chosen to retreat. ” Gabel told the House Executive Committee. “The uncertainty in Washington and the resulting affordability crisis facing families has emphasized our need to be surgical and our approach to building this budget.”.

A coalition of progressive Democrats. however. said the proposal did not do enough—arguing it falls short of fully funding quality education. accessible healthcare and reliable public services for every Illinoisan. Republicans, meanwhile, said the budget is too steep and too rushed, with negotiations conducted without them.

“They’re loading up their grocery cart literally before they have any idea how much they’re going to spend,” said state Sen. Chapin Rose, a top GOP budget negotiator from downstate Mahomet. He criticized the increase from last year’s $55.2 billion budget and the new taxes.

The series of budget bills was still moving through the Capitol as the afternoon wound down before the end of session. The budget scramble was happening at the same time lawmakers were also pushing new legislation meant to lure the Chicago Bears to build a new stadium in Illinois rather than Indiana.

A first draft of the 3,500-plus page spending plan was unveiled with barely a day left in the legislative session. The spending plan was largely aligned with the maintenance budget Gov. JB Pritzker proposed earlier this year amid troubling economic headwinds and federal funding cuts under President Donald Trump.

“There are no tax increases on everyday working families,” said state Sen. Elgie Sims, a Chicago Democrat and chief Senate budget negotiator. “In fact, everyday working families, as a result of this budget, will see their lives get easier.”

Property tax relief and food support for families

As lawmakers tried to address the Bears’ property tax concerns, they also tried to address homeowners’ fears by refunding a property tax relief program that was left out of last year’s budget.

Because property taxes are levied by school boards and local taxing bodies to make up for funding that does not come from the state, Sims said school districts that need more funds could apply for additional state funding to help keep a lid on local property taxes.

Sims also said Illinois would suspend a scheduled 1.3-cent-per-gallon increase in the gas tax and implement a sales tax holiday on school supplies.

The spending plan was also set to retain a $143 million health care program for older immigrants without documentation, and $4 million for immigrant welcoming service centers.

With new federal work requirements pending for SNAP recipients, the proposal carved out $70 million for a new program named Families Receiving Emergency Support for Hunger, or FRESH.

Sims described it as an urgent response. “We are facing a crisis,” he said. “There are over 100,000 individuals who will lose SNAP benefits as a result of the actions from our hostile federal government.”

Under the FRESH plan, families who were recently booted from SNAP would receive a one-time $400 individual payment.

Legislators’ pay raises and disputed revenue sources

Illinois legislators were also set to get 3% cost-of-living raises tied to inflation, as outlined by state law. That would raise their base salaries to $101,450.

The budget partially relies on extra state revenue brought in from sales tax on motor fuel in the last few months due to skyrocketing gas prices. The additional $150 million. lawmakers said. wasn’t anticipated by the governor when he first proposed a budget in February. and it was redirected to plug other holes.

Rose pushed back on the idea of a “surplus on sales tax for motor fuel,” saying “there is no surplus. We’re gouging these people because of what is happening with the price of gas.”

A second potential win for cities, seen as unusually aligned with Chicago’s priorities, involved income tax sharing with municipalities. Lawmakers were on track to restore funding to local governments’ cut of state income tax back to 6.47% over the Pritzker-proposed 6.23%.

The governor’s proposal would have cost municipalities an estimated $60 million annually. including $12.7 million for Chicago alone. according to data from the Illinois Municipal League. Chicago Mayor Brandon Johnson had joined numerous other mayors in Springfield earlier this month to protest the governor’s proposed shift.

While these pieces were being debated and refined, lawmakers were also working to reshape other parts of Pritzker’s agenda—at least where agreements already existed.

Cellphones in schools moves toward final approval

After passing regulations on artificial intelligence and insurance companies last week, Pritzker scored another long-awaited legislative win in the waning hours of session: a statewide ban on cellphones in schools.

A statewide school cell phone ban was first proposed by the governor in early 2025, but it failed to make it through both chambers. A year later, the bill was awaiting an easy signature from Pritzker, allowing Illinois to join multiple other states across the country with similar cellphone bans.

In a statement. Pritzker said the effort had broad support because families and educators see the impact of screen time in classrooms. “Every parent and educator knows the damage that unchecked screen time and social media can do to our children and how disruptive they can be in school. ” Pritzker said. “The bipartisan support for this effort reflects the urgency educators and families across Illinois feel.”.

The budget and the political math behind it

The push and pull around the new budget package comes down to how Illinois will pay for what Democrats say families need most. and how much revenue can safely be counted on from taxes that could invite court fights. Food assistance. older immigrants’ healthcare. and a one-time $400 emergency payment are being framed as responses to federal changes that are arriving without much warning.

At the same time. the proposed taxes aimed at prediction markets. cryptocurrency. fantasy sports. digital advertising revenue. and large social media companies are the flashpoints that Republicans say are being rushed into law. Democrats. including Sims. insist the tradeoff is about affordability and targeting. and that the state will avoid loading everyday workers with new costs.

As the session ends, lawmakers are still moving through the Capitol with budget bills—while the broader political contest over what Illinois can afford, and who should pay, continues to narrow to a set of final votes.

Illinois budget Illinois Democrats Robyn Gabel Elgie Sims Chapin Rose SNAP FRESH program prediction markets tax cryptocurrency tax fantasy sports tax cell phone ban in schools JB Pritzker