Illinois Insights: An update from Cozen O’Connor (6/2)

ILLINOIS

AROUND THE STATE

Illinois Democrats pass budget in final minutes with sports betting tax hike 

“Illinois lawmakers approved a $55.2 billion state budget package minutes ahead of a key constitutional deadline Saturday night, relying on tax hikes that would hit smokers, gamblers and big out-of-state companies to help seal an estimated $1 billion shortfall,” by the Chicago Sun-Times.

After lawmakers pass budget with cuts and tax hikes, Gov. JB Pritzker blames state’s fiscal challenges on Trump 

“While offering a sunny take on the passage of a roughly $55 billion state spending plan balanced in part by cutting back on some of his own priorities, Gov. JB Pritzker on Sunday blamed Illinois’ latest fiscal challenges not on a state tax system he once described as “unfair” and “inadequate” but on economic headwinds created by President Donald Trump,” by the Chicago Tribune.

Transit bailout in Springfield falls apart

“A proposed overhaul to reform and provide needed funding for regional transit fell short during the General Assembly’s spring session, postponing the conversation and nudging transit agencies to the edge of a $771 million fiscal cliff,” by Crain’s Chicago Business.

Illinois bill aims to lower cost of prescriptions, rein in pharmacy benefit managers 

“A bill that seeks to control the rising cost of prescription drugs while also offering financial help for many small, independent pharmacies in Illinois cleared the General Assembly on Saturday and will soon be sent to Gov. JB Pritzker for his signature,” by Capitol News Illinois.

Illinois delays implementation of credit card swipe fee law until July 2026

“The Illinois General Assembly pushed back by a year implementation of its controversial Interchange Fee Prohibition Act, which would exempt state and local taxes and tips from so-called swipe fees charged by credit card processors,” by Crain’s Chicago Business.

Amid uncertainty in Washington, Illinois lawmakers pass slimmed-down Medicaid package 

“This year, however, lawmakers passed one of the narrowest packages in recent memory, due mainly to the Trump administration’s vows to make sweeping cuts in federal funding for the program while state lawmakers faced their own set of budget constraints,” by Capitol News Illinois.

CHICAGO

MORE FROM CITY HALL

Chicago is spending $3.2 million on consultants to probe city’s budget 

“Chicago will spend nearly $3.2 million to have Ernst & Young consultants scour the budget for efficiencies as the city confronts anticipated shortfalls the next two years of over $1 billion,” by Crain’s Chicago Business.

A bill to reform Chicago’s mass transit and charge a $1.50 delivery fee stalls in Illinois House 

“Illinois lawmakers ended their spring session early Sunday without passing legislation to reform mass transit governance in the Chicago area or direct upwards of $1 billion in new funding to the CTA, Metra and Pace to fend off a $770 million fiscal cliff that looms next year,” by the Chicago Sun-Times.

Chicago Bears’ stadium efforts run out of time in Springfield, but suburban lawmaker says deal was close 

“While the Illinois General Assembly didn’t end up passing legislation this session that helped or hurt the Chicago Bears’ stadium efforts, one suburban lawmaker said the legislature got close to a deal on property tax legislation — a measure widely seen as a way to ease a team move to Arlington Heights,” by the Chicago Tribune.

Because Johnson balks at compromise ‘granny flats’ measure, affordable housing lags, ex-zoning chair says 

“Mayor Brandon Johnson doesn’t have the votes to give single family homeowners carte blanche to turn their attics, basements and garages into revenue-generating “granny flats,” and if he doesn’t accept a compromise, a city that needs every affordable housing unit it can get will end up with nothing,” by the Chicago Sun-Times.

Finance committee to hold hearing on city’s credit rating downgrades, future of U.S. municipal bond policy

“The City Council’s finance committee on Tuesday will gather to hear subject matter on the city’s recent credit ratings downgrades and negative financial outlook,” by The Daily Line.

FEDERAL

Cozen Currents – The Known Unknowns of Trump 2.0

House Republicans have made significant progress on their version of the reconciliation bill encompassing much of President Trump and the GOP’s legislative agenda in recent weeks, but they will still need to negotiate changes with their Senate counterparts as Trump remains impatient to sign the bill into law.

Trump’s tariff policies have created a cloud over global trade, but his moves to ratchet back his initial proposals in recent weeks have tempered some of this uncertainty. While the exact path forward for his America First approach to geoeconomics and geopolitics has not yet become fully clear, it appears to be more transactional in nature than based on any grand strategy.

DOGE founder Elon Musk is taking a step back in the Trump administration but Office of Management and Budget Director Russ Vought is poised to carry the torch on spending cuts.

Read the Cozen Currents here.

Beltway Briefing – The NYC Political Season Heats Up

With New York City’s primaries just weeks away, the political season is heating up. Who are the key candidates in the mayoral, comptroller, and city council races? What dynamics and strategic alliances are emerging? What role will federal decision-making play in shaping the city’s future—and how are local candidates positioning themselves in response? Featuring New York Public Strategies’ Katie Schwab, Jamie Ansorge, and Ashley Thompson DiNardo.

Listen to the Beltway Briefing here.

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