Pritzker Orders 4% FY2026 Budget Reserve

Gov. J.B. Pritzker signed an executive order directing most Illinois state agencies to identify immediate spending reductions and reserve up to 4% of FY2026 general fund appropriations within 30 days to cushion the state against policies by President Trump he called economically harmful. The directive targets nonessential hiring, purchases, travel and other operational expenses and asks agencies to propose program changes or funding transfers if shortfalls emerge. With a $55.1 billion FY2026 budget, the 4% reserve would total about $2.2 billion; the order exempts some entities such as the State Board of Education and certain pension systems. Pritzker cited federal cuts to health and nutrition programs, tariffs hurting Illinois businesses and recession risks as reasons and noted a separate $100 million bridge reserve as additional but limited protection. Republicans accused Pritzker of overspending—saying state spending has risen roughly 40% since he took office—and urged broader fiscal restraint rather than blaming federal policy.