SPRINGFIELD, Ill. (WAND) — Gov. JB Pritzker signed the $55.2 billion Fiscal Year 2026 budget Monday. Democrats said the spending plan doubles down on strong fiscal discipline, but Republicans argue taxpayers deserve more relief.
The FY26 budget includes a $100 million bridge reserve fund to help cover short-term emergencies and revenue shortfalls. Democrats stressed this fund will be critical to respond to cuts of healthcare access and infrastructure caused by President Donald Trump and Congressional Republicans.
“You’re seeing red states and blue states across the country struggle this year, forced to grapple with the lagging national economic growth estimates due to high tariffs and bad policy choices in Washington,” Pritzker said.
House Republicans did not appreciate the fact that Democrats described hard decisions they made while increasing spending by $2 billion. They also blasted Democrats for diverting road funds to pay for their own priorities.
“We’re robbing the road fund to pay for operating expenses of the state of Illinois,” said Rep. Ryan Spain (R-Peoria). “We’re offering a wage increase, a de minimus wage increase, to DSPs while reducing their hours. But, legislators are going to come out great here making almost $100,000.”
The budget invests $307 million in the evidence-based funding formula for K-12 schools and includes a $10 million increase in MAP grant funding to help even more people achieve higher education goals. It also features $263 million for the Home Illinois program and efforts to address homelessness.
“The numbers on the page are not just numbers on a spreadsheet,” said Sen. Elgie Sims (D-Chicago). “They’re lives. They represent people’s lives. We are lifting people and make sure that we continue to close the wage gap. We continue to make sure that we run right towards the challenges facing our communities.”
Democrats earmarked $53 million to fully implement the state-based insurance marketplace and $25 million for a new community pharmacy program to lift up local brick and mortar pharmacies. Yet, Senate Republicans said the budget ignores the realities facing most working families.
“While everyday Americans are struggling to put gas in our tanks, buy groceries, and pay our utility bills, this Illinois budget adds more than $1 billion in taxes and increases spending by nearly 40%,” said Sen. Sally Turner (R-Lincoln).
Democratic lawmakers agreed with Pritzker to end the state’s free healthcare program for immigrant adults ages 42 to 64. Although, the budget still includes $132 million to provide free healthcare for immigrant seniors.
“The decisions that shaped this budget were not easy, but were made strategically, using the best information we have to make the best decisions for working families and seniors throughout Illinois,” said House Speaker Emanuel “Chris” Welch (D-Hillside).
The appropriations plan passed out of the House on a 75-41 vote. Democrats Stephanie Kifowit and Larry Walsh voted against the budget. Rep. Carol Ammons (D-Urbana) was excused for that portion of the evening.
This budget passed out of the Senate on a 34-23 vote with four Democrats voting against the measure, including Sen. Doris Turner (D-Springfield).
“Over the last six years, while Illinois families have struggled under the pressure of inflation and rising costs, the governor and his Democratic allies increased state spending by $15 billion – nearly 40%,” said Senate Minority Leader John Curran (R-Downers Grove). “This unprecedented taxpayer funded spending growth has included no meaningful tax relief for Illinois families and will continue to hold our state back.”
The Fiscal Year 2026 budget takes effect July 1.
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