Illinois Lawmakers Approve FY 2027 State Budget

The Illinois House approved the Fiscal Year 2027 state budget early Wednesday morning, sending the measure to the governor after both chambers passed the spending plan.

The House took up the budget bill, House Bill 111, at 3:40 a.m. Debate lasted about half an hour before the bill was approved 76-39 at 4:12 a.m. As with other measures needed to complete the state budget, the House voted to suspend its rules so the bill could be called immediately after arriving in the chamber.

House Republicans questioned the affordability of the budget, arguing it would not help the average Illinois resident. House Republican Leader Ryan Spain commended the chamber for better communication between the parties than in past years, but said it is time to move beyond communication and toward collaboration.

Democratic budgeteer Rep. Robyn Gabel said the vote was not just a vote for a budget, but a vote for the people, saying the spending plan would make life better for Illinois residents.

One portion of the budget discussed by multiple House members was an increase in salary for members of the General Assembly. According to the budget bill, the base pay for lawmakers would increase from $98,000 to $101,450, a 3.2 percent increase.

The budget also includes moving $150 million from the motor fuel tax to the general revenue fund. Republicans raised concerns about the move in both chambers, questioning why the money was not returned to consumers at a time when gas prices remain high.

The spending plan also includes $70 million for programs to help people who lost SNAP benefits in Illinois.

Republicans criticized the budget as the largest in Illinois history and said it includes $800 million in tax hikes. They pointed to comments made earlier this year by House Speaker Emanuel “Chris” Welch during a City Club of Chicago event in January.

"Everything is about affordability and that's going to be our focus."

House Republicans said Illinois families struggling with rising costs may find that hard to believe after Democrats approved a $55.9 billion state budget that includes new taxes, spending and what Republicans described as political giveaways.

Republicans said the budget includes a $200 million social media tax, sweeps $150 million from the sales tax on motor fuel, sets aside at least $220 million for pork projects and special spending priorities, spends $40 million on welcoming centers for illegal immigrants and allocates $110 million for health care benefits for illegal immigrants over the age of 65.

They also criticized additional tax proposals being pursued by Democrats, including a digital advertising tax, a tax on prediction markets and efforts to decouple Illinois from federal tax provisions. Republicans said many of those proposals face legal questions.

House Republicans said the latest tax increases come on top of 57 tax and fee hikes enacted under Gov. JB Pritzker, which they estimate have cost Illinois taxpayers $77 billion.

The Illinois Chamber of Commerce also responded to the FY 2027 budget package, saying it entered the legislative session focused on policies tied to economic development, affordable and reliable energy, workforce development and a more competitive regulatory environment.

The chamber said the budget includes some investments that align with those priorities and commended lawmakers for advancing several pro-growth initiatives. The group pointed to the extension of the Research and Development Tax Credit, River’s Edge Program, the Pass-Through Entity tax election and the Angel Investment Tax Credit, saying those measures will help support innovation, entrepreneurship and capital investment across Illinois.

The chamber also said it appreciated lawmakers’ decision to delay implementation of the Interchange Fee Prohibition Act, saying the move provides more time to address operational concerns tied to the legislation.

However, the chamber raised concerns about the budget’s reliance on what it called burdensome tax proposals to achieve balance. The group specifically cited changes to the Net Operating Loss deduction cap, as well as revenue measures it said are likely to face legal scrutiny, including the Targeted Advertising Services Tax Act, Digital Asset Tax and Social Media Platform Fee.

The chamber said those measures risk undermining Illinois’ competitiveness and sending an unfavorable signal to employers, investors and job creators considering long-term commitments in the state.

The Illinois Chamber of Commerce said it remains committed to working with members of the General Assembly, the Governor’s Office and stakeholders across Illinois to advance policies that foster economic growth, encourage investment and strengthen the state’s position as a place to live, work and do business.

House Republicans unanimously opposed the budget and said they will continue pushing for lower taxes, responsible spending and relief for Illinois families facing rising costs.