Illinois Insights: An Update from Cozen O’Connor (12/8)

December 8, 2025

ILLINOIS

AROUND THE STATE

Pritzker: ‘No’ to state taxpayer-funded guaranteed income 

“Gov. J.B. Pritzker says he is not planning to follow Cook County by implementing a guaranteed income program, and one Statehouse Democrat wants to prevent government units from funding such programs with taxpayer dollars,” by the Center Square Illinois

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State pension shortfall improves, thanks to strong market 

“The unfunded liabilities of the state’s five big pension systems improved slightly for the fiscal year ended June 30, thanks to strong investment returns,” by Crain’s Chicago Business

Gov. JB Pritzker announces plans for America’s 250th anniversary

“As the United States approaches its 250th anniversary, Illinois is rolling out a range of initiatives aimed at showcasing the state’s contributions to the country’s early history. Gov. JB Pritzker announced plans for the celebration Wednesday at Navy Pier on Illinois’ 207th anniversary,” by the Chicago Sun-Times

Illinois Democrats running to replace Durbin release economic proposals

“With that in mind, the three top Democrats vying to become the party’s nominee for U.S. senator in Illinois have released proposals detailing how they plan to make life more affordable for Americans,” by Crain’s Chicago Business.  

Illinois ends race-based teacher scholarship restrictions, ending legal challenge

“Illinois has eliminated racial preferences in a state-funded scholarship program for aspiring teachers, following a legal challenge that argued the policy violated constitutional protections,” by My Stateline

 

CHICAGO

MORE FROM CITY HALL

Johnson floats head tax overhaul amid budget stalemate 

Mayor Brandon Johnson is offering a revamped version of his corporate head tax — targeting only the city’s largest employers and raising the rate to $33 per worker — in a last-minute effort to salvage his $16.6 billion budget and head off a potential government shutdown,” by Crain’s Chicago Business

Johnson Warns Chicago is Headed for Shutdown Amid Budget Deadlock

“Mayor Brandon Johnson warned Monday morning that Chicago was headed for its first-ever government shutdown after a marathon weekend meeting failed to break the budget deadlock gripping the city,” by WTTW

Johnson pours cold water on council bloc’s budget plan

“Mayor Brandon Johnson has rejected much of the budget overhaul put forward by 26 aldermen, arguing the projections are unreliable and the savings unachievable in 2026, even while leaving wiggle room for negotiations,” by Crain’s Chicago Business.  

Chicago Housing Authority head told HUD ‘we do not recommend’ Mayor Brandon Johnson ally as CEO

“The Chicago Housing Authority board told the federal government this fall that Mayor Brandon Johnson was pressuring the agency behind the scenes to install a close political ally to lead the nation’s third-largest public housing agency,” by the Chicago Tribune

Chicago headed for a bond rating drop if City Hall doesn’t get budget right, Civic Fed president says

“Chicago’s second straight budget stalemate is not about the City Council vs. Mayor Brandon Johnson, or left vs. centrist. It’s about Wall Street rating agencies and an almost certain downgrade in the city’s bond rating ‘if we don’t get this right,’ Civic Federation President Joe Ferguson said Thursday,” by the Chicago Tribune

 

FEDERAL

Beltway Briefing: Federal Power vs. City Streets: A Constitutional Shutdown

From Chicago to Portland to Charlotte, President Trump’s deployment of immigration agents to Democratic-led cities has sparked a nationwide debate over the limits of federal authority and local control. Chicago’s showdown with the White House exemplifies the growing tension between Washington and America’s urban centers—and the legal battles that could redefine the balance of power. Featuring Public Strategies’ John Dunn, Pat Carey, and Sydney Holman. Listen to the Beltway Briefing here.

Cozen Currents: Trump Blames the Message But Not the Messenger

Democrats’ electoral success last month has put increased attention on the affordability issue facing voters and raised questions about what President Trump and Republicans will do, but so far, the indications are that the main emphasis will be on adjusting the message rather than policy. 

Lawmakers are racing to make up for lost time in negotiations over full-year government spending bills as the January 30th deadline to fund the federal government through the end of FY26 rapidly approaches. 

Congress is expected to pass the National Defense Authorization Act by year-end and the legislation presents an opportunity for other bills to hitch a ride and become law as amendments. Read the Cozen Currents here.

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