Illinois Legislative News: September 29, 2025
On September 23, 2025, Gov. JB Pritzker signed Executive Order 2025-05, instructing state agencies to reserve 4% of their FY 2026 appropriation to mitigate the economic policies of the Trump Administration. According to the Governor’s Office, the recently enacted H.R. 1 (a.k.a. the One Big Beautiful Bill) and other federal policy changes have led to increased tariffs, wealth inequality, strained Illinois businesses, and could lead to an economic downturn. As required by the Executive Order, most state agencies must conduct budget reviews to find areas of reduction within the next 30 days, limit non-essential spending, and use restraint in hiring decisions. Agencies must prioritize essential roles and propose changes or transfers as a mitigation plan in case the state ends up facing a budget shortfall.
The order does not apply to the General Assembly, Judicial Branch, Attorney General, Secretary of State, State Comptroller, State Treasurer, Offices of Executive Inspectors General, Executive Ethics Commission, State Board of Elections, Illinois Power Agency, State Board of Education, any public college or university, or any state retirement system.
The anticipated federal policy changes from the Trump administration come as Illinois’ economy has been strong. Illinois’ GDP crossed the $1 trillion mark in 2022, revenues grew to record levels allowing for balanced budgets, the state has received nine credit rating upgrades, saved over $2 billion in a rainy-day fund, and reduced the bill backlog from over $17 billion to only a standard monthly accounts payable balance. In FY 2026, Illinois budgeted for 2.4% General Funds revenue growth over the previous year. Two months into the new fiscal year, the state has only achieved 0.5% revenue growth. Even so, it is far too early to determine if the projected revenue growth level can or cannot be achieved.
Important Upcoming Dates – Statewide
October 14-16 – Veto Session Week 1
October 28-30 – Veto Session Week 2