SPRINGFIELD, IL (Chambana Today) – With just hours to spare before the end of the legislative session, Illinois Democrats muscled through a $55.2 billion state budget late Saturday night, drawing swift criticism from Republicans for raising taxes and offering little time for public scrutiny.
The spending plan, supported by $55.3 billion in revenue, features over $1 billion in new or increased taxes targeting sports betting, nicotine products, foreign corporate income, and certain business activities. It passed along strict party lines, with the House approving Senate Bill 2510 in a 75-41 vote and the Senate following 34-23 around 11:30 p.m.
“This is the best budget we could craft in a difficult year,” said House Majority Leader Robyn Gabel, D-Evanston. “It’s fiscally and socially responsible in the face of erratic federal leadership.”
The package raises spending by nearly 4% over the current fiscal year but does not include a rainy-day fund deposit. Instead, it creates a new $100 million “emergency fund” for the governor to tap into amid uncertainties tied to potential federal funding changes.
New Revenue Measures:
- A sports betting tax: 25 cents per wager for the first 20,000 bets, 50 cents thereafter.
- An increase in the tobacco tax from 36% to 45%, now also applied to vapes and nicotine pouches.
- Expanded sales tax obligations for remote sellers, including large e-commerce companies like Amazon.
- A new corporate tax on foreign income to capture profits shifted offshore.
- A delinquent tax incentive program expected to raise $228 million.
Despite Gov. JB Pritzker’s prior resistance to “broad-based” tax increases, he issued a statement Saturday night supporting the final budget deal, saying he would sign the measures.
Controversial Cuts and Priorities:
- A program offering health coverage to noncitizens aged 42–64 will be eliminated in FY26, saving an estimated $330 million, while a $110 million program for noncitizen seniors will continue.
- Lawmakers increased funding for Federally Qualified Health Centers by $40 million to help offset those cuts.
- The K-12 evidence-based funding model received $307 million but left out $43 million for property tax relief.
- Community college funding dropped by $24 million due to underused workforce development grants.
- Public university funding increased just 1%, down from Pritzker’s proposed 3%.
Other Notable Provisions:
- A $75 million reserve fund was created to address possible Tier 2 pension law violations.
- No new funding was provided for a Chicago Bears stadium, though NASCAR and the PGA Tour will receive $6 million total for events in Illinois.
- Lawmakers’ salaries will increase to $98,304, a hike that drew fire from Republicans, who accused Democrats of prioritizing themselves and pork projects over taxpayers.
- The budget includes an 80-cent hourly wage boost for Direct Support Professionals, though critics argued actual take-home pay may be diminished due to reduced hours.
“There’s no fiscal responsibility in this budget,” said Sen. Don DeWitte, R-St. Charles. “It’s a betrayal of the taxpayers.”
Democrats defended the package as a tough but necessary response to flat revenues and fiscal threats from Washington. “It’s not a great budget, but it’s the budget we need for this very difficult moment,” said Rep. Lindsey LaPointe, D-Chicago.