Illinois Legislative News: January 12, 2026
Third Reading Consulting Group
Third Reading Consulting Group
The federal government, effective immediately, is withholding more than $10B in family and childcare assistance from Illinois and four other states as part of a broad effort to crack down on what federal officials describe as fraud and misuse in state‑run programs. The freeze applies to the Child Care and Development Fund ($2.4B), the Temporary Assistance for Needy Families program ($7.35B), and the Social Services Block Grant ($869M). In Illinois, the move would freeze more than $1B in funding to support childcare providers, low‑income families, and community organizations. The other states impacted are California, Colorado, Minnesota, and New York.
Officials in the Trump administration say they initiated the freeze after internal reviews flagged irregularities in how certain states documented eligibility, verified payments, and monitored providers, arguing that these gaps created opportunities for improper or duplicate claims. The five states must now submit justifications and documentation before payments are released under the U.S. Department of Health and Human Services’ (HHS) expanded Defend the Spend system, which now applies to all U.S. Administration for Children & Families (ACF) payments nationwide. Federal officials claim they are also reviewing whether benefits were improperly provided to ineligible immigrants.
Despite strong revenue totals in the first half of FY 2026, Illinois faces a variety of federal funding changes that will impact future state budgets. Illinois is still recovering from Supplemental Nutrition Assistance Program (SNAP) payment delays in November caused by the longest federal government shutdown in U.S. history, which left nearly two million residents with partial or late benefits and forced families to rely on food pantries while waiting for full payments to resume. At the same time, the state is preparing for major Medicaid changes under the federal budget reconciliation bill, H.R. 1, which will trigger large‑scale eligibility shifts and coverage losses as redeterminations ramp up beginning January 1, 2027. These overlapping disruptions have already strained families and providers, and the federal funding freeze adds yet another pressure point to systems that are struggling to stabilize. Childcare providers and social‑service agencies say the freeze could force reductions in capacity, delays in payments, or temporary closures.
Mastering the State Contracting Game Webinar Series
The Illinois Department of Innovation & Technology (DoIT) Office of Supplier Diversity, in collaboration with the IT Procurement Office (ITPO), announced a new webinar series, “Mastering the State Contracting Game,” as part of its “Leveraging Diversity in Technology Procurement” educational series.
This five-part series equips IT vendors with the knowledge to navigate the State of Illinois’ procurement process. The series will be presented by representatives from the ITPO team and moderated by Reginald Lampkin, BEP/VBP Manager for DoIT Supplier Diversity. Each session will include live demonstrations in BidBuy, the State’s electronic procurement system.
To register for the webinar series, click here.
Webinar Series Schedule:
Part I – Cracking the Code: Responding to an Invitation for Bid (IFB)
January 21, 2026 | 10:00 – 11:00 AM CT
Covers mandatory vs. desired requirements, submission protocols, pricing sheets, delivery schedules, and includes live BidBuy demos.
Part II – Small Purchase, Big Opportunity: Navigating Informal Solicitations
February 11, 2026 | 10:00 – 11:00 AM CT
Focuses on small purchases under $100K, with guidance on eligibility, response protocols, timing challenges, and BidBuy monitoring tips.
Part III – Reading Between the Lines: RFP Part I
March 11, 2026 | 10:00 – 11:00 AM CT
Breaks down RFP structures, evaluation criteria, and compliance requirements, with hands-on BidBuy access for RFP tracking.
Part IV – Building a Winning Proposal: RFP Part II
April 15, 2026 | 10:00 – 11:00 AM CT
Provides advanced guidance on crafting technical narratives, Statements of Work, and supporting documents to avoid common submission errors.
Part V – Price, Proposals, Questions, and Post-Submission Process: RFP Part III
May 13, 2026 | 10:00 – 11:00 AM CT
Covers pricing strategies, handling amendments, clarification questions, and BidBuy monitoring for updates and negotiation opportunities.
Important Upcoming Dates – Statewide
February 6 – Bill Introduction Deadline
February 18 – Governor’s State of the State and Budget Address
March 13 – Initial Chamber Committee Deadline (Senate)
March 27 – Initial Chamber Committee Deadline (House)
April 17 – Initial Chamber Third Reading Deadline
May 8 – Opposite Chamber Committee Deadline
May 22 – Opposite Chamber Third Reading Deadline
May 31 – Adjournment