SPRINGFIELD, Ill. — Illinois lawmakers approved a $55.9 billion state budget early Monday morning after overnight debate, sending the Fiscal Year 2027 spending plan to Gov. JB Pritzker. The budget is the largest in state history and includes full funding of the state’s Evidence Based Funding formula for K through 12 schools, pension obligations and increased funding for local governments. Democrats supported the plan, saying it prepares Illinois for potential federal funding cuts, while Republicans argued it relies too heavily on new taxes and spending.
The budget passed largely along party lines after lawmakers worked through the night. The Senate approved the spending bill on a 37 to 21 vote shortly after 3 a.m., and the House followed with a 76 to 39 vote about an hour later. Republicans criticized the process, noting that the more than 3,700 page spending plan and related amendments were filed only hours before final votes. State Sen. Chris Balkema called the process embarrassing, while State Rep. Brad Fritts of Dixon said the late night action lacked transparency and represented bad government.
To balance the budget, lawmakers approved a series of tax and revenue changes expected to generate hundreds of millions of dollars. New taxes will be imposed on social media companies based on the number of Illinois users, along with taxes on fantasy sports operators, digital asset transactions, prediction market sports betting and remote tobacco retailers. Lawmakers also extended a cap on corporate net operating loss deductions. Democrats said the measures were necessary to maintain services without increasing taxes on working families.
“ It continues the same path we’ve been down that has Illinois trailing national growth. It is killing us economically. We did not address affordability. We are raising taxes even more. The tax and spend mentality has failed. It has failed Illinois, and it has failed my constituents, and there is no attempt to put us on a better path,” State Senator Li Arellano said early Monday morning, “And until we get budgets that are fair to all of Illinois and actually shift path towards prosperity, I will be voting no.”
The spending plan also includes several affordability measures. Lawmakers delayed a scheduled increase in the state motor fuel tax until January and created a sales tax holiday on school supplies from Aug. 7 through Aug. 16. A new one year FRESH program will provide eligible residents who lose or see reductions in federal SNAP food assistance benefits with a one time $400 payment. The budget also contains about $65 million in reductions to government operations, though Democrats said no state employees will lose their jobs.
Republican lawmakers remained critical of the budget and revenue package. State Rep. Joe Sosnowski of Rockford voted against the plan and argued that delaying the gas tax increase only postpones a future tax hike. He also opposed shifting an estimated $150 million in gas related sales tax revenue into the state’s general operating budget. Republicans said the spending plan adds roughly $800 million in taxes and fees and fails to address long term financial concerns. Democrats countered that the budget protects key services and helps Illinois respond to uncertainty from federal policy changes and spending reductions.