Illinois Insights: An Update from Cozen O’Connor (1/5)

January 5, 2026

ILLINOIS

AROUND THE STATE

Despite mounting budget pressure, graduated income tax remains political longshot 

“Pritzker, who put the ‘fair tax’ at the center of his 2018 gubernatorial campaign and served as its chief champion during the failed 2020 referendum campaign, told reporters in November that putting the question on the ballot is ‘not something that’s been a priority for me going into the next session,’” by Capitol News Illinois. 

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Illinois hopes to lure major developments by expanding a bond program statewide

“A bill passed by Illinois lawmakers includes the creation of sales tax and revenue bonds in the state — designed to lure major developers that will do at least $60 million in gross sales annually,” by STLPR.  

Feds to award Illinois $193M next year for rural health care as part of Big Beautiful Bill Act, as state braces for Medicaid cuts 

“The federal government is awarding Illinois $193 million next year to support rural health care — money that’s part of the One Big Beautiful Bill Act, but not enough to make up for Medicaid cuts from the measure, state health leaders say,” by the Chicago Tribune.

Trump administration sues Illinois over state law limiting federal immigration actions 

“In an expected move, the Trump administration filed a lawsuit last week seeking to nullify a new state law that allows Illinois residents to sue federal immigration agents who arrest them in or near courthouses or if they believe their constitutional rights were violated,” by Capitol News Illinois. 

Blagojevich seeks ex-ComEd CEO’s clemency from political corruption conviction

“Former Gov. Rod Blagojevich is lobbying President Donald Trump for ex-ComEd CEO Anne Pramaggiore’s clemency after she was convicted of conspiring to influence former Illinois House Speaker Michael Madigan in exchange for legislation favoring the utility company,” by the Chicago Sun-Times. 

 

CHICAGO

MORE FROM CITY HALL

North Side alderman pausing Chicago Zoning Committee meetings to pressure Mayor Brandon Johnson to pick chairperson

“The interim chair of the Chicago City Council’s Zoning Committee is halting its meetings to try to force Mayor Brandon Johnson to appoint a permanent head of the critical committee. North Side Ald. Bennett Lawson, who has led the committee since August, said Monday he is no longer willing to serve as its interim chief,” by the Chicago Tribune. 

Sports betting in Chicago to continue in 2026, after sportsbooks drop bid to immediately block tax and licensing law 

“Sports betting will continue uninterrupted in Chicago in 2026, after a coalition of sportsbooks dropped their effort to immediately block new taxes and licensing requirements in the city,” by CBS News. 

City Hall hiring freezes, including under Mayor Brandon Johnson, have proved to be more of a chill 

“When Mayor Brandon Johnson faced a long-expected budget deficit this fall, he again turned to a government hiring freeze as a means to save money and show the public that City Hall was taking the problem seriously,” by the Chicago Tribune. 

As federal health tax credits end, Chicago-area leaders warn about costs to Cook County and Illinois hospitals

“With health care subsidies expiring in the new year, Cook County Health officials and political leaders on Wednesday warned the impact will not only hurt millions of Americans but also affect the county’s bottom line and hospitals around the state,” by the Chicago Tribune. 

 

FEDERAL

‘Twas the Night Before 2026

In this holiday special, our hosts look back on the 2025 federal landscape the only way that feels appropriate, through seasonal song parodies paired with real-world anecdotes spanning the White House and Capitol Hill. From unpacking the first year of Trump 2.0 to navigating the longest government shutdown in U.S. history, our politicos blend humor, harmony, and political and policy truths as we look ahead to 2026. Featuring Public Strategies’ Howard Schweitzer, Mark Alderman, Towner French, and Patrick Martin. Listen to the Beltway Briefing here.

Cozen Currents: AI-merica First

President Trump issued an executive order that seeks to block state AI laws, but his own party is divided over the issue. 

The Trump administration’s decision to approve the sale of Nvidia’s H200 semiconductors to China represents a significant departure from the previous consensus in Washington on sales of advanced chips to China. 

The Trump administration is pursuing efforts to decrease its reliance on Chinese critical mineral supply chains not only through a whole-of-government approach domestically but also the uncharacteristically multilateral support of allies and partners abroad. Read the Cozen Currents here.

Authors

About Cozen O’Connor Public Strategies

Cozen O’Connor Public Strategies, an affiliate of the international law firm Cozen O’Connor, is a bipartisan government relations practice representing clients before the federal government and in cities and states throughout the country. With offices in Washington D.C., Richmond, Albany, New York City, Philadelphia, Harrisburg, Chicago, and Santa Monica, the firm’s public strategies professionals offer a full complement of government affairs services, including legislative and executive branch advocacy, policy analysis, assistance with government procurement and funding programs, and crisis management. Its client base spans multiple industries, including healthcare, transportation, hospitality, education, construction, energy, real estate, entertainment, financial services, and insurance.

About Cozen O’Connor

Established in 1970, Cozen O’Connor has over 775 attorneys who help clients manage risk and make better business decisions. The firm counsels clients on their most sophisticated legal matters in all areas of the law, including litigation, corporate, and regulatory law. Representing a broad array of leading global corporations and middle-market companies, Cozen O’Connor serves its clients’ needs through 31 offices across two continents.

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