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CURRENT LEGISLATION Illinois Statehouse Briefing November 9, 2026 Illinois House Speaker Emanuel “Chris” Welch announced November 5 that he will not seek another term as Speaker, following a public call for new leadership from 26 incumbent and incoming House Democrats. The announcement came just two days after Democrats expanded their House supermajority in the general election. The leadership change follows months of internal concerns over Welch's handling of sexual harassment allegations involving former Rep. Harry Benton, as well as broader frustrations with caucus management, communication and legislative procedures. Welch, who became Speaker in 2021 following Michael Madigan's departure, will remain in the House as a rank-and file member. No successor has emerged. House Democrats are expected to begin selecting their next leader when lawmakers return to Springfield for veto session on November 17. VETO SESSION outlook: House Speaker Chris Welch's decision not to seek another term has created a leadership vacuum at a time when Democrats are preparing to enter the next General Assembly with expanded supermajorities. With House Democrats beginning the process of selecting a new Speaker, attention is expected to shift toward internal leadership discussions rather than advancing major legislation. One issue that could still advance is legislation intended to keep the Chicago Bears in Illinois. The team confirmed November 6 that it is working with state leaders on a potential stadium financing framework that could accommodate a new stadium in either Chicago or Arlington Heights. Discussions have focused on allowing municipalities to establish public stadium authorities, although financing and infrastructure details remain under negotiation. Also, the POWER Act, which would establish new regulations governing data centers' energy and water use while protecting utility customers from higher costs, remains under negotiation but is increasingly unlikely to advance during veto session. The issue gained additional attention following the November election, when voters overwhelmingly opposed data center development in several nonbinding local referendums, including in Bloomington, Joliet Township, and communities in Madison County, signaling growing public concern over the industry's impact on local infrastructure and utility costs. 2026 Election: Democrats Expand Legislative Supermajorities As detailed in our post-election report, Illinois Democrats secured significant gains in the November 3 election, expanding their already substantial legislative supermajorities. Gov. JB Pritzker won a historic third term, and Democrats swept all statewide constitutional offices, each winning more than 60% of the vote. Based on unofficial results, Democrats are positioned to enter the 105th General Assembly with approximately 84 House seats and 45 Senate seats. Republican losses were widespread, extending well beyond traditionally competitive suburban districts. In the Senate, incumbents Seth Lewis, Darby Hills, Craig Wilcox, and Erica Harriss were defeated, while Democrats also captured the open seat vacated by Sen. Don DeWitte. In the House, Republican incumbents Martin McLaughlin, Jennifer Sanalitro, Dan Ugaste, Brandun Schweizer, and Kevin Schmidt lost their reelection bids. Democrats also captured the open House seat vacated by Rep. Amy Grant. Republican legislators Rep. Jeff Keicher and Sen. Dave Syverson held narrow leads as additional ballots continued to be counted. The results highlight the continued Democratic shift in Chicago's suburbs, where Pritzker carried all five collar counties, including historically Republican McHenry County. He also became the first Democratic gubernatorial candidate to carry Sangamon County since 1964. While the expanded majorities further diminish Republican leverage in Springfield, the Democratic caucuses now encompass an increasingly broad range of ideological and reginal perspectives, meaning that building consensus on complex issues such as taxes, spending, energy, and other major policy initiatives will remain an important part of the legislative process. November 9, 2026 | Page 1 JESSICA A. NARDULLI CONSULTING, LLC | Illinois Statehouse Briefing ILLINOIS ROUNDUP Pritzker Unveils 200-Point Federal Policy Agenda Following his reelection, Gov. JB Pritzker unveiled Fighting for Illinois: The Day One Agenda, a set of approximately 200 policy recommendations for the incoming Congress in Washington, DC. Developed with input from state agencies, the agenda largely focuses on reversing Trump administration policies and restoring federal funding and protections in healthcare, education, immigration, energy and infrastructure. Proposals include reversing Medicaid and SNAP cuts, restoring Affordable Care Act subsidies, expanding Pell Grants, supporting clean energy investments and strengthening federal oversight of immigration enforcement. Several recommendations address Illinois-specific economic interests, including year-round E15 sales, funding for the Brandon Road project, and federal support for quantum computing. While framed around the needs of Illinois residents, the agenda is directed at federal policymakers rather than the Illinois General Assembly and does not establish new state legislative priorities. Its release also places Pritzker more prominently in the national policy debate amid ongoing speculation about a potential 2028 presidential campaign. Chicago Budget Battle Intensifies Over Corporate Taxes Chicago Mayor Brandon Johnson's proposed $17.6 billion FY27 budget seeks to close an $882 million deficit through new business taxes and borrowing. The plan includes a $25 monthly head tax per employee on businesses with more than 125 workers, an increase in the tax on software, cloud computing and equipment leases from 15% to 20%, and a higher sports wagering tax. Together, the head tax and lease tax increases are projected to generate approximately $336 million annually. The proposal avoids a property tax increase but includes $481 million in borrowing over two years to cover police misconduct settlements. Opposition remains strong, with 29 alderpersons signaling they will reject the head tax, as they did last year. The budget negotiations became more complicated when City Council voted 44–6 to redirect $75 million in parking meter proceeds toward pensions rather than general budget expenses, creating an additional revenue gap. Budget hearings continue through November 10, with a balanced budget required by December 31. New Leadership at Illinois Department of Labor Mike Lazzeri took over as Director of the Illinois Department of Labor (IDOL) on November 1, succeeding Jane Flanagan, who departed after more than four years leading the agency. Lazzeri brings more than 20 years of federal government experience, most recently serving as Midwest Regional Administrator for the U.S. Department of Labor's Wage and Hour Division, where he oversaw labor law enforcement across 10 states. His background includes wage and hour enforcement, regulatory compliance and major child labor investigations. Lazzeri's appointment remains subject to Senate confirmation. Leadership Changes at CMS and Governor’s Office Gov. JB Pritzker announced that Illinois Department of Central Management Services (CMS) Director Raven DeVaughn will transition to the Governor’s Office as a senior advisor, focusing on key policy and legislative priorities. DeVaughn has led CMS since 2023, overseeing workforce initiatives, the $500 million Surplus to Success program and the James R. Thompson Center transaction. She previously held leadership positions at the University of Chicago, World Business Chicago and the Public Building Commission of Chicago. Erin O’Boyle will serve as interim director of CMS following DeVaughn’s departure. Illinois Public University Enrollment Reaches 11-Year High, but Challenges Persist Enrollment at Illinois’ 12 public universities surpassed 190,000 students this fall, reaching its highest level since 2015 and marking the third consecutive year of growth, according to the Illinois Board of Higher Education. However, the statewide increase was modest, with just 287 students, or 0.15%. Undergraduate enrollment grew 1.8%, while graduate and professional enrollment declined 3.9%, largely driven by a 14.2% drop in international students. The Pritzker administration attributed the decline to changes in federal student visa processing. Western Illinois University continues to face particularly significant challenges, with enrollment falling 16.7% to 4,447 students, including a freshman class of just 429. Career and Technical Education Enrollment Climbs at Illinois Community Colleges Career and Technical Education (CTE) enrollment at Illinois community colleges increased 5.9% this fall to 75,208 students, reaching its highest level in nine years, according to the Illinois Community College Board (ICCB). CTE enrollment has grown 26.1% since 2022 and now accounts for 27.7% of all community college students, reflecting growing demand for workforce-focused training. Vocational skills programs also saw a 9.6% increase. Overall community college enrollment remained relatively stable at 271,845 students, down 0.7% from last year but slightly above pre-pandemic levels. Dual credit enrollment continued to grow, increasing 2% to 56,043 students, while transfer program enrollment declined 1.8%. DCFS Held in Contempt Over Failure to Release Records A Sangamon County judge held the Illinois Department of Children and Family Services (DCFS) in civil contempt for failing to comply with court orders in a Freedom of Information Act lawsuit filed by Capitol News Illinois. The lawsuit seeks records related to the 2024 death of 18-year-old Mackenzi Felmlee in foster care. DCFS repeatedly missed court hearings, delayed releasing records and failed to pay a previously imposed $5,000 penalty. Although Director Heidi Mueller attributed the failures to internal miscommunication, the judge found the agency's noncompliance willful and ordered compliance within 30 days. A follow-up hearing is scheduled for December 4. BJC and Aetna Reach Temporary Agreement BJC HealthCare and Aetna reached a one-year agreement on November 6 preserving in-network access to Barnes Jewish Hospital, WashU Medicine, and other BJC providers for approximately 5,000 Illinois retirees enrolled in the state's Aetna-administered Medicare Advantage (TRAIL) program. The agreement averts a potential disruption in coverage beginning January 1, 2027, following weeks of uncertainty. The arrangement extends coverage through the end of 2027 but does not apply to individual Medicare Advantage plans or other employer-sponsored plans. Meanwhile, Rep. Katie Stuart (D-Edwardsville) introduced HB 5830, which would require the Illinois Department of Central Management Services to begin procuring Medicare supplemental insurance options in January 2027 for coverage beginning in 2028. The legislation would require at least two supplemental plan options if sufficient qualifying bids are received. IBM Unveils Advanced Quantum Computer in Chicago Gov. JB Pritzker and IBM unveiled the company’s first quantum computer in Illinois at Hyde Park Labs in Chicago. Supported by a $25 million state grant, the IBM Quantum System Two will eventually relocate to the Illinois Quantum and Microelectronics Park on Chicago’s South Side. The announcement builds on IBM’s growing investment in Illinois, including its planned FutureNow Chicago center, expected to create 750 technology jobs, and a partnership with City Colleges of Chicago to support 500 apprentices over five years. The investments advance the state’s broader strategy to position Illinois as a hub for quantum computing and advanced technology. Illinois Secures Federal Approval for 240 Opportunity Zones Gov. JB Pritzker announced federal approval of 240 Illinois census tracts under Opportunity Zones 2.0, a program offering tax incentives for private investment in economically distressed communities. The updated designations take effect January 1, 2027, for a 10-year period. Nearly 90% of the selected tracts qualify as underserved areas, while 78 qualify for enhanced rural investment incentives. The program aims to attract private capital, encourage business expansion and support housing and economic development across Illinois. JESSICA A. NARDULLI CONSULTING, LLC | Illinois Statehouse Briefing Illinois Implements Diesel Relief as Prices Remain Elevated Illinois has begun implementing Gov. JB Pritzker’s temporary diesel relief measures as fuel prices remain historically high. As of October 14, diesel averaged approximately $6.57 per gallon in Illinois, nearly 78% higher than a year ago. Under guidance issued by the Illinois Department of Revenue, farmers may use dyed diesel on state roads for qualifying agricultural purposes without state penalties through December 31. The relief follows Pritzker’s statewide disaster proclamation and executive order responding to rising fuel costs during harvest season. Fuel industry representatives have raised questions about how the temporary relief will operate in practice, while the International Energy Agency now warns that global diesel shortages could persist well into 2027. Bears Stadium Talks Resume Ahead of Veto Session Talks over a new Chicago Bears stadium are picking back up ahead of veto session, with state leaders pressing the team to settle on a legislative path. Gov. JB Pritzker recently met with NFL Commissioner Roger Goodell, Bears minority owner Pat Ryan, House Speaker Chris Welch, Rep. Kam Buckner and Sen. Bill Cunningham in the first meeting to bring the governor, legislative negotiators and the NFL together. Participants described the discussion as productive, although no agreement was reached. The two primary options remain the House’s payment-in-lieu-of-taxes (PILOT) approach and the Senate’s municipal stadium authority proposal. Negotiators are reportedly showing renewed interest in the Senate framework, in part because it is location-neutral and could accommodate either Chicago or Arlington Heights. Whether a proposal advances during veto session will ultimately depend on whether negotiators can develop a package capable of winning sufficient support in both chambers while addressing lawmakers’ continued concerns about taxpayer exposure. Google, Constellation Announce Plan to Expand Nuclear Capacity Constellation Energy, the nation’s largest nuclear power provider, agreed this week to invest $4.3 billion to increase output at 11 nuclear plants in Illinois, Pennsylvania, and New Jersey. Google will purchase the additional power under a 20-year agreement. Approximately $2 billion of the investment will support the Byron, Braidwood, LaSalle, and Quad Cities plants in Illinois. Google will fully fund the northern Illinois upgrades at no cost to Illinois customers, and the additional output is expected to put downward pressure on electricity rates. The agreement will increase generation across the 11 plants by 890 megawatts, roughly the capacity of a typical U.S. nuclear reactor. The additional power will be distributed through PJM Interconnection. Pritzker Helps Launch Multistate PJM Governors’ Collaborative Gov. JB Pritzker joined a bipartisan group of governors in formally establishing the PJM Governors’ Collaborative, a multistate effort aimed at giving states a stronger voice in decisions made by the regional grid operator that serves northern Illinois and much of the Mid-Atlantic. The group plans to coordinate positions on PJM policy, share technical expertise and jointly engage with PJM, FERC and state utility regulators. The effort comes amid growing concern over electricity costs, grid reliability, transmission delays and rising demand from data centers. Pritzker has increasingly pressed PJM to ensure that large new loads do not shift infrastructure and generation costs onto existing ratepayers. Illinois Revenue Running Ahead of Budget Expectations Illinois revenues remain well ahead of expectations through the first quarter of FY27, with receipts running about $1 billion, or 8.2%, above last year’s pace. September revenues were nearly 10% higher than a year ago, driven largely by strong corporate and sales tax collections. COGFA cautioned, however, that the strong pace may not continue. Approximately $265 million in assumed FY27 revenue remains tied up in litigation, while year-over-year comparisons will become less favorable later in the fiscal year. The Commission has also warned that federal tax changes enacted through the One Big Beautiful Bill Act could weigh on Illinois corporate income tax collections because of the state’s conformity with portions of the federal tax code. Digital Asset Tax Delayed Six Months Illinois has agreed to delay implementation of its new 0.2% digital asset tax from January 1 to July 1, 2027, pending court approval. The agreement between the state and industry groups would avoid an immediate fight over a preliminary injunction while litigation continues over the tax’s constitutionality and enforceability. The tax, enacted earlier this year, applies to certain digital asset businesses with more than $100,000 in Illinois receipts. Judge Blocks Illinois Prediction Market Regulations A federal judge has temporarily blocked Illinois from regulating prediction markets such as Kalshi and Polymarket in the same manner as sportsbooks, finding that the contracts are likely subject to exclusive federal oversight under the Commodity Exchange Act. The ruling prevents enforcement of state restrictions on who may trade and what types of contracts may be offered while the litigation continues. The court did not resolve Illinois’ separate tax on prediction- market transaction fees, signaling that the tax could potentially survive even if the broader regulatory scheme is preempted. Lawmakers did not include revenue from the tax in the FY27 budget, anticipating litigation over the new law. Report Highlights Economic Benefits, Policy Challenges of Data Centers A new report from the Illinois Economic Policy Institute and the University of Illinois’ Project for Middle Class Renewal estimates that planned data center development could support more than 120,000 jobs and generate nearly $300 million annually in property tax revenue over the next decade. The report also highlights growing concerns over electricity demand, water usage and potential costs to ratepayers, noting that data centers already account for approximately 7% of Illinois electricity demand. Researchers recommend requiring data centers to bear the cost of new energy infrastructure, encouraging projects to bring new clean-energy resources online, strengthening water-efficiency requirements, and tying state tax incentives to higher environmental standards. Lawmakers are continuing to consider data center regulations following the spring session debate over the POWER Act, making the issue one to watch heading into veto session. FEMA Denies Illinois Disaster Assistance Request FEMA has denied Illinois’ request for a major disaster declaration following the severe storms, flooding, derecho and tornadoes that struck the state in August. The request sought individual and public assistance for Champaign, Cook, Ford, Fulton, McLean, Tazewell, Vermilion and Will counties. Newly released state documents show the request exceeded FEMA’s statewide eligibility threshold, with $27.6 million in documented damage compared with the $24.9 million required and per-capita damage of $5.95 compared with a $1.94 threshold. Some individual counties did not meet their own thresholds, although federal rules allow damage across affected counties to be considered together. FEMA has not publicly provided a more detailed explanation for the denial. Gov. JB Pritzker is appealing the decision. The state’s request documented more than 4,500 damaged residential structures, including 46 destroyed homes, along with significant uninsured losses and public infrastructure damage. Illinois Health Insurance Marketplace Rates Rise 14.1% for 2027 The Illinois Department of Insurance released 2027 rates for plans offered through the Get Covered Illinois marketplace, showing a statewide weighted average increase of 14.1% for individual plans. That is down from the 28.8% average increase approved for 2026. Five insurers will offer plans through the marketplace for 2027. IDOI noted that posted rates do not reflect the actual premiums consumers will pay after plan selections and available tax credits are applied. In 2026, more than 466,000 Illinoisans enrolled in marketplace coverage and approximately 85% received premium tax credits. Open enrollment for 2027 coverage runs November 1 through January 15, with consumers able to preview plans beginning October 19. Illinois Statehouse Briefing October 1, 2026 Illinois is in the final month of the November 3 election. Gov. JB Pritzker is seeking a third term against Republican Darren Bailey and independent Collin Corbett. Lt. Gov. Juliana Stratton faces former Illinois Republican Party Chair Don Tracy for retiring U.S. Sen. Dick Durbin’s seat. All 118 Illinois House seats and 39 of the 59 Senate seats are also on the ballot. Democrats hold substantial majorities in both chambers, and the principal Statehouse question is the size and composition of those caucuses after Election Day, as both super-majorities are expected to add to their membership. Campaigns are emphasizing affordability, energy costs and national politics. Pritzker and Democratic legislative leaders enter the final stretch with considerable financial resources, while Republicans are concentrating on a smaller number of competitive legislative seats. House Speaker Chris Welch’s campaign operation has also separated from the Democratic Party of Illinois’ coordinated campaign after a funding dispute, adding to tensions within the majority caucus. The General Assembly returns for veto session November 17-19 and December 1-3. Pritzker signed the spring legislation and did not issue a veto requiring an override vote. Data center regulation, education funding, Bears stadium and megaproject proposals, and ethics reforms could surface, but none presently has a deadline that forces resolution in December. Gov. JB Pritzker’s BUILD housing proposal could return in veto session after stalling this spring, but the Illinois Municipal League remains opposed to its limits on local zoning authority. A brief lame duck session may follow in January before the new General Assembly takes office January 13. The election results and negotiations among the Governor and legislative leaders will determine which issues are ready for a vote. Policy and Fiscal Updates Pritzker Creates AI Cabinet as Data Center Talks Continue Gov. JB Pritzker has created an Illinois Artificial Intelligence Cabinet to recommend safeguards and examine the technology’s effects on public infrastructure. Its charge includes data center incentives, permitting, grid impacts and ratepayer costs. The announcement comes as the administration presses lawmakers to replace the pause on new data center incentive agreements with a broader framework during veto session. Negotiations continue over electricity and water demand, labor standards and community impacts. Tollway Approves $26.5 Billion Capital Program The Illinois Tollway Board approved its 15-year Driving Connections program in August, along with rate increases to fund roadway, bridge and congestion projects. Passenger tolls will rise by approximately 45 cents per toll on January 1, 2027, and commercial vehicle rates by 30%. Inflation-based adjustments begin in 2029. The program spans the Tollway system and will run through 2042. New Regional Transit Authority Begins Work The Northern Illinois Transit Authority began operating September 1, replacing the RTA and taking a larger role in regional budgeting, fares and capital planning while CTA, Metra and Pace continue to run service. The new board has elected Tom Kotarac chair and named Jamie Rhee interim executive director. It is developing its first regional budget, plans for a universal fare system and the efficiencies required under last year’s transit law. Illinois Receives Two More Credit Upgrades Moody’s raised Illinois’ general obligation rating to A1 in August, and S&P followed in September with an upgrade to A. The agencies cited stronger reserves and improved fiscal management, although Illinois still faces substantial pension liabilities. General Funds revenues closed FY26 roughly $1 billion above the estimate used for the budget and were ahead of the prior year through the first two months of FY27. The early pace may not continue, but it gives lawmakers a stronger starting position for fall fiscal discussions. JESSICA A. NARDULLI CONSULTING, LLC | Illinois Statehouse Briefing Illinois EPA Releases PFAS Strategy Illinois EPA has issued an integrated plan for monitoring and reducing PFAS contamination in drinking water, groundwater and wastewater. Community water systems must finish initial monitoring by April 25, 2027, begin ongoing compliance monitoring the next day and meet Illinois’ PFAS limits beginning April 26, 2029. The state is maintaining its schedule even as federal requirements remain under review. Choate Downsizing Draws Second Lawsuit AFSCME Council 31 has sued to block the administration’s plan to eliminate civil mental health beds and substantially reduce developmental disability beds at Choate Mental Health and Developmental Center. The union argues that state laws governing facility closures and psychiatric capacity were not followed. The administration says demand for psychiatric beds is greater in northern Illinois and plans to shift capacity to Madden Mental Health Center. The suit is the second challenge to the plan since July. Illinois EPA Releases Climate Action Plan The Illinois EPA has released its Comprehensive Climate Action Plan, finding that existing policies will not put the state on track to reach net-zero greenhouse gas emissions by 2050. The plan models additional measures across transportation, buildings, industry and other sectors that could reduce emissions 72% below 2005 levels by 2050. It estimates significant economic and health benefits, but the proposed measures are a roadmap rather than enacted policy. Many would require future legislative, regulatory or budget action. School Funding Adequacy Gap Continues to Grow New Evidence-Based Funding calculations show Illinois moving further from its school-funding goals despite continued increases in state support. The statewide adequacy gap has grown to approximately $6.8 billion, up from $4.8 billion three years ago, and only 292 of 850 districts are now funded at or above 90% of their adequacy target. Rising costs, changes in corporate tax revenue and growth in the number of low-income students are contributing to the gap. The figures strengthen the case for additional statewide funding as lawmakers consider whether to address education spending during veto session. Medical Aid-in-Dying Law Takes Effect After Court Ruling Illinois’ End-of-Life Options for Terminally Ill Patients Act took effect September 12 after a federal judge declined to block it while a legal challenge proceeds. The law allows eligible adults with a terminal diagnosis to request life-ending medication from a physician, subject to requirements involving prognosis, capacity and self-administration. The plaintiffs argued that the law could expose people with disabilities to discrimination and inadequate oversight, but the judge found they had not shown grounds for a preliminary injunction. The litigation remains pending.
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