Illinois Lawmakers Pass $55.2B Budget With New Sports Betting, Tobacco Taxes

Illinois Democrats passed a $55.2 billion state budget for fiscal year 2026, which includes over $1 billion in new taxes primarily targeting sports betting, nicotine products, and businesses, while not affecting income and sales taxes. The budget represents a 3.9% spending increase from the previous year and includes strategic spending cuts, a $100 million emergency fund, and allocations such as grants for NASCAR and the PGA Tour, but excludes funding for a new Chicago Bears stadium or Chicago-area mass transit shortfalls. Republicans criticized the budget for its rushed approval process, lack of significant cuts, and repeated legislative pay raises, with concerns about transparency and fiscal responsibility. Democrats defended the budget as balanced, fiscally and socially responsible, and necessary to address economic uncertainties influenced by federal policy changes. The plan also includes tens of millions for chambers of commerce and community centers, reflecting a broad approach to economic development. The legislative session concluded with the budget passage just before the midnight deadline amid partisan disagreements on its contents and process.