Illinois Legislative News: May 11, 2026
Third Reading Consulting Group
April 2026 Tax Revenue Update
Illinois collected $7.305B in General Funds revenue in April of FY 2026, an increase of 2.0% (or $146M) over April of FY 2025. While this total represents the second-highest revenue month in state history, trailing only the pandemic stimulus-aided $8.0B received in April of FY 2022. The 2.0% growth rate is slightly below the 2.4% budgeted growth assumption for the full fiscal year. April is the largest revenue month of every fiscal year, and this year April revenues represent 13.21% of the state’s enacted $55.290B FY 2026 budget. At year end, this percentage will likely decrease a bit if current trends continue and Illinois closes FY 2026 with a slight surplus.
Heading into April, Illinois’ year-to-date revenues were up 4.2% over FY 2025. The strong growth in the first three quarters more than compensated for the modest increase in April, with year-to-date total General Funds revenue now standing 3.8% (or $1.716B) above the same point last year. When factoring out all one-time revenues, base General Funds are up 4.0% (or $1.778B) over the same point in FY 2025. With April revenues on the books and year-over-year growth exceeding the projected amount, Illinois appears on pace to close FY 2026 with a slight surplus.
To date, personal income tax revenue is up 4.2% (or $1.167B), sales tax revenue is up 4.0% (or $387M), and corporate income tax revenue is down 7.1% (or $344M). Personal income tax has been the largest contributor to growth in FY 2026, benefiting from sustained wage growth and additional business-related revenues flowing through the personal income tax as a result of the true-up process, despite the negative impact of OBBBA changes. Corporate income tax has experienced the inverse effect, losing revenue through the true-up process while absorbing an even greater hit from OBBBA changes. Sales tax growth has continued since the second half of FY 2025, supported by cumulative inflation dating back to the COVID-19 pandemic.
All other state sources are up a combined 10.4%, led by 42.4% (or $216M) growth in estate tax collections and 29.7% (or $121M) growth from insurance taxes and fees. Transfers into General Funds are also up a combined 32.6% (or $633M), led by 176.7% (or $447M) growth from the Income Tax Refund Fund, 95.0% (or $153M) growth from sports wagering, and 34.8% (or $55M) growth from gaming. After significantly lagging their FY 2025 totals through most of the first half of FY 2026, federal sources have begun to rebound and are now only 1.4% (or $45M) below their level at this point in FY 2025. With two months remaining, continued year-over-year growth from federal revenues could result in year-end totals meeting or exceeding FY 2025 levels. Lawmakers are expected to pass their budget by May 31, with the new fiscal year beginning July 1.
Opposite Chamber Committee Deadline Extensions
Friday, May 8 was supposed to be the deadline for opposite chamber bills to pass out of committees. However, both chambers ended up extending the opposite chamber committee deadlines until May 15 for a large number of bills that were not heard in committee before the May 8 deadline. In practice, the week of May 15 will feel more like the committee deadline. With only three weeks left until the scheduled adjournment date of May 31, prepare for a fast-paced end to the 2026 regular session of the Illinois General Assembly.
Important Upcoming Dates – Statewide
May 8 – Opposite Chamber Committee Deadline
May 22 – Opposite Chamber Third Reading Deadline
May 31 – Adjournment
November 3 – Illinois General Election