Illinois Legislative News: October 5, 2026
Third Reading Consulting Group
Gov. Pritzker Establishes Illinois Artificial Intelligence (AI) Cabinet
As policymakers across the country consider new regulations and safeguards for artificial intelligence (AI), Gov. J.B. Pritzker has established a panel of experts to examine the technology’s potential risks and develop regulatory recommendations for Illinois. On September 22, 2026, Gov. Pritzker signed Executive Order 2026-07, establishing the Illinois Artificial Intelligence Cabinet. The Cabinet will bring together professionals from a range of industries and fields to assess the risks AI may pose to the safety of Illinois residents and develop policy recommendations.
Gov. Pritzker is expected to appoint Cabinet members “in the coming weeks,” who will work alongside leaders from several state agencies, including the Department of Innovation and Technology, Department of Public Health, and Illinois Emergency Management Agency. The Cabinet is expected to develop policy proposals through 2027. In announcing the initiative, Gov. Pritzker said, “Artificial Intelligence has enormous potential to transform our everyday lives, but when experts and industry leaders sound the alarm bell, urge us to slow down, and ask for guardrails, we should listen.”
The AI Cabinet's creation follows a legislative session in which the Illinois General Assembly extensively debated and passed a range of measures regulating AI. Despite extensive debate over the POWER Act supported by environmental advocates, the General Assembly did not pass comprehensive data center regulation, and that issue will continue to be debated heading into the fall veto session and a potential January lame-duck session. In the meantime, Gov. Pritzker unilaterally directed the Department of Commerce and Economic Opportunity to suspend the processing of new state data center tax exemptions, effective July 1, 2026, while lawmakers work toward a legislative solution.
Mayor Johnson Proposes Chicago Data Center Moratorium
Gov. Pritzker’s establishment of the AI Cabinet comes as the City of Chicago is also examining the broader impacts of AI infrastructure and data center development. On August 11, 2026, Mayor Brandon Johnson signed Executive Order 2026-5, directing City departments to strengthen oversight of data center development and calling on the Chicago City Council to enact a temporary moratorium on new data centers and the material expansion of existing facilities.
The executive order itself does not impose a moratorium. Instead, it expressly recognizes that the Chicago City Council holds the legislative authority to establish one. The order took immediate effect and directed enhanced review of air pollution permits, noise control, and planned developments as the city works toward a more comprehensive regulatory framework for data center development. The executive order also establishes the Interdepartmental Data Center Environment and Community Protection Task Force, which will evaluate data center impacts and develop policy recommendations for the city. The task force will bring together relevant City departments to assess environmental and community concerns associated with data center development.
Important Upcoming Dates – Statewide
November 3 – Illinois General Election
November 17-19 – Veto Session Week 1
December 1-3 – Veto Session Week 2