Illinois Enacts Record $55.2B FY26 Budget

Illinois Governor JB Pritzker signed a record $55.2 billion fiscal year 2026 budget, his seventh consecutive balanced budget. The plan boosts funding for education, early childhood programs, child welfare, and sets aside $100 million for a bridge reserve fund and $161 million for the rainy day fund, though critics say this falls short of recommended levels. While avoiding broad income or sales tax hikes, the budget employs $482 million in targeted tax increases, $100 million in fund sweeps, and $444 million in one-time revenue. It has drawn criticism for deferring a projected $770 million shortfall for Chicago-area transit, diverting infrastructure funds, and underfunding pensions by $5.1 billion. Democrats praise the budget's fiscal discipline and preparation for potential federal cuts, while Republicans argue it relies on unsustainable, short-term measures. Major long-term fiscal challenges remain unresolved.