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Pritzker Set to Outline Tight Illinois Budget as Federal Revenues Slide

Legislative leaders expect no new taxes from the governor, signaling caution.

Overview

  • Gov. J.B. Pritzker delivers his annual budget address Wednesday, with leaders briefed on the plan describing a restrained, “maintenance” proposal near the current roughly $55 billion level.
  • Senate President Don Harmon said he does not expect Pritzker to propose new taxes and suggested a very small surplus could be included, reflecting a tight fiscal year.
  • State-source revenues are modestly higher year to date by about $1 billion, or 3.5%, while federal receipts have weakened, including a 36% drop in January for a third consecutive monthly decline.
  • The Governor’s Office of Management and Budget reported a $587 million revenue hit from federal tax changes, and Pritzker has moved to withhold $482 million in state spending to cushion the impact.
  • The Trump administration’s cancellation of $100 million in Illinois public‑health grants is temporarily blocked by a 14‑day restraining order, as Democrats file targeted revenue bills and Republicans press for spending restraint.