Illinois legislative season wraps up with $55.95 billion FY 2027 budget, and 395 bills approved

The Illinois General Assembly concluded its 2026 spring legislative session in the early morning hours of June 1, ending a session uniquely shaped by differing legislative calendars and priorities between the House and Senate. As a result, many major policy proposals advanced independently through each chamber for much of the spring before lawmakers worked to reconcile priorities during the final weeks of session.  

This dynamic was most visibly illustrated by competing proposals concerning the future of the Chicago Bears, where each chamber advanced its own vision but ultimately adjourned without reaching consensus. 

Despite those challenges, lawmakers approved 395 bills this spring, addressing a wide range of issues affecting Illinois. 

FY27 Budget, Revenue and Taxes

The General Assembly approved a $55.95 billion Fiscal Year 2027 budget, supported by a projected $55.945 billion in state revenues. The budget package, consisting of HB 111 (appropriations), HB 2949 (budget implementation), and SB 3019 (revenue), relies on more than $800 million in new taxes and fees, including:  

• A new progressive social media platform fee per-user monthly charge on large platforms.  
• A 0.2% tax on digital asset services, including exchanges, transfers, storage and custodial services. The tax applies to businesses with a physical presence in Illinois or at least $100,000 in annual receipts from Illinois customers, meaning national platforms may face obligations regardless of headquarters location.  
• In the gaming space, the bill creates a new 15% tax on fantasy sports operators’ adjusted receipts under a newly established state licensing structure and extends taxation to sports bets placed on prediction market platforms.  
• A new tax was also added on remote cigar retailers. 

While Governor Pritzker’s proposal to establish statewide zoning standards allowing “missing middle” housing developments by right on certain residential lots failed to gain support before adjournment, the budget does include a significant investment in housing affordability initiatives, including:  

• $100 million for a new Missing Middle Housing Infrastructure (M2I) Grant Program designed to help developers access the capital needed to build new attainable housing. 
• $100 million for additional affordable housing programs at Illinois Housing Development Authority (IHDA)Data Centers: Both chambers held extensive subject-matter hearings on data centers and their effects on energy use and the environment. Governor Pritzker also called for a pause in data center tax credits. The legislature took no action on these issues before adjournment. 

Passenger Rail Planning Act (HB4279) - Did not pass out of the House chamber, but we will continue to work with IDOT in positioning the Quad Cities as part of a coordinated regional rail strategy. Read more about Passenger Rail

Chicago Bears Mega Bill - The House Megaproject bill, HB910 (HA3) that generated significant discussion throughout session was substantially different from the Municipal Stadium Authority bill, HB958 (HA2) that was introduced on May 31. Neither was able to pass both chambers. 

CBD and Hemp Regulation (SB3222) – This bill creates new pathways for participation in Illinois’ cannabis industry by establishing mandatory licensing requirements for CBD manufacturers and uniform manufacturing, testing and operational standards for hemp-derived products. It also reserves at least 45 cannabis infuser licenses for social equity applicants and adds a requirement that 50% of all cannabis transportation activity be conducted through Social Equity Transporters. SB3222 passed both chambers.  

While the spring session has concluded, many significant issues remain unresolved and are likely to return during the Fall Veto Session scheduled for the weeks of November 17-19 and December 1-3 later this year, and potentially, into the 2027 legislative calendar. In the meantime, we will continue to monitor Quad Cities Chamber priorities and work with our Springfield lobbyists to anticipate opportunities for engagement during the next few months.