BUDGET/TAXES
Democrats Pass $55.2 Billion Budget. Another year, another budget, and a record-breaking spending increase.
Just before midnight on the last day of the legislative session, Illinois House Democrats passed the FY26 budget that will cost taxpayers more than $55.2 billion, a $2 billion increase over last year.
State spending under Governor Pritzker has grown exponentially since he took office in 2019. When he took over as Governor, state expenditures were $40.3 billion. Each year since we have seen state spending grow and we now have a budget that is $15 billion higher than when he took office.
When Governor Pritzker delivered his Budget Address in February, he said, “If you come to the table looking to spend more – I’m going to ask you where you want to cut.”
So much for that sound bite. The newly passed budget contains $1 billion in tax hikes and fund sweeps to pay for new spending, pork barrel projects for Democrats, and pay raises for politicians.
For several years in a row, the Democrats have negotiated spending plans behind closed doors, excluded Republican input, rejected accountability, and raised taxes on Illinoisans in order to quench their never-ending thirst to spend more money.
House Republicans have repeatedly offered to work with the majority party to craft a balanced budget without tax hikes, but were once again completely shut out of the process.
Democrats succeeded in incorporating near-record spending and huge tax hikes in the FY26 budget, showing no fiscal restraint and failing to implement structural reforms. Democrats even rewarded themselves with hundreds of millions in pork projects and a big fat pay raise for politicians in the budget. All on the taxpayer’s dime. Like a kid in a candy store, Democrats can’t seem to control themselves.
State Representative Kevin Schmidt says the budget does not reflect the needs of Illinois residents:
This massive budget does not reflect the needs of Illinois citizens. Bad public policy has cost the state billions,” said Rep. Schmidt. “I’m disappointed to see Democrats tap into the pockets of working families to accommodate their appetite for spending on pork projects in Democratic districts.”
$1 Billion in New Taxes and Fund Sweeps. The $55.2 billion budget for Fiscal Year 2026 is reliant on one-time revenues and a billion dollars in tax hikes and fund sweeps.
The Budget and Revenue Package consisted of three major components:
- FY26 Budget Appropriations – SB 2510
- FY 26 Budget Implementation Bill (BIMP) – HB 1075
- FY 26 Revenue Package – HB 2755
Democrats imposed a laundry list of new taxes and money was swept from dedicated funds paid for by user fees to prop up the Democrats’ wasteful spending.
Ultimately, Democratic lawmakers voted to raise their own pay, impose new taxes, and make life in general a lot more expensive for already cash-strapped Illinois taxpayers.
Below is a list of major revenue changes that were included as part of the FY26 budget, which includes tax increases, fund sweeps, pauses in statutory transfers, among other items.
PUBLIC CORRUPTION
Federal Prosecutors Seek 12.5-Year Sentence for Madigan. The federal government is seeking a prison sentence of 12.5 years and a fine of $1.5 million for former Speaker of the House Michael J. Madigan, who was convicted on corruption charges earlier this year. Madigan will face sentencing on June 13.
“The crimes charged and proven at trial demonstrate that Madigan engaged in corrupt activity at the highest level of state government for nearly a decade,” federal prosecutors argued in their sentencing memo. “Time after time, Madigan exploited his immense power for his own personal benefit by trading his public office for private gain for himself and his associates, all the while carefully and deliberately concealing his conduct from detection.”
Madigan’s long-running reign as Speaker of the House ended with his ouster in January 2021 amid a federal bribery investigation. He resigned his legislative seat one month later. Madigan had served in the legislature for more than 50 years, 36 of those years as Speaker. For much of that time, he simultaneously led the Illinois Democratic Party, tightening his stranglehold not just on legislators, but on all Democratic elected officials in Illinois.
Rep. Schmidt says ethics reform must be addressed in Illinois because the level of corruption is unacceptable:
“The fact that no meaningful action was taken on ethics during the 2025 legislative session despite the guilty verdict of former Speaker Mike Madigan is completely unacceptable. House Democrats must start taking corruption seriously and work with us to pass the ethics reforms we all know Illinois needs.”
“Mike Madigan’s fall from power is no surprise — it’s the bill coming due for decades of corruption,” stated House Republican Leader Tony McCombie after learning of the recommended sentencing. “He betrayed the public trust, lined his pockets, and now faces justice. Illinois deserves better. It’s time to turn the page and end the era of crooked politics for good.”
Republicans continue to call for stronger ethics measures in the wake of Madigan’s conviction.
CONSUMERS
Controversial ‘swipe fee’ delayed for one year. In a last-minute move, a massive change being imposed by the State of Illinois on Illinois consumers who use credit cards was delayed for one year. The controversial ‘swipe fee’ law would ban financial institutions that issue credit cards from imposing a fee on the retailers that accept these credit cards for use in Illinois. The law was enacted in May 2024 for implementation this year.
For complex legal reasons, this ‘swipe fee’ law is entangled with the transactions on which an Illinois State sales tax is collected. This would create a complex and snarled situation in which a transaction could be fee-imposed and taxed in two separate categories depending on the sales tax applicability of each transaction. An especially ugly scenario arose with respect to food service transactions, where it appeared likely that implementation of the controversial ‘swipe fee’ law could require many Illinois consumers who use their credit cards at table-service restaurants to run their cards twice, once for the meal and once for the service fee or tip paid to personnel. The action by the Illinois General Assembly to delay implementation of the ‘swipe fee’ does not make this law go away; its implementation has been ‘paused’ for one year. This debate will continue into the 2026 spring session.
FIREARMS
House Republicans Vote to Protect the Rights of Law-Abiding Gun Owners, Stand Against Unconstitutional Storage Restrictions.
Senate Bill 8, also known as the Safe Gun Storage Act, imposes new mandates requiring gun owners to store firearms in locked containers when in the presence of minors, prohibited persons, or so-called “at-risk” individuals. Rep. Schmidt stated the bill has conflicting provisions and creates legal uncertainty for all law-abiding gun owners across the state.
“Democrat lawmakers keep pushing questionable legislation that further restricts law-abiding gun owners from exercising their Second Amendment Rights,” said Schmidt. “Senate Bill 8 invites lawsuits and creates excessive gun-storage mandates that are completely unnecessary for responsible Illinois citizens.”
Additionally, SB 8 requires gun owners to report stolen firearms within 48 hours or face civil penalties, despite most gun owners already acting responsibly and taking such steps voluntarily. Republicans argue a provision in the bill gives greater Second Amendment rights to non-residents transporting firearms through Illinois than to state residents themselves.
House Republicans also voted against an amended House Bill 850. The bill makes changes to Illinois’ Clear and Present Danger statute which strips due process protections and will lead to further constitutional violations.
After legislative session adjourned Wednesday night, House Minority Leader Tony McCombie released the following statement:
“Democrats spent more time extolling the virtues of violating federal immigration laws than they did taking away the Second Amendment rights of law-abiding gun owners.”