Weekly update on federal and state legislative action and proposals

Last week Governor Pritzker signed legislation approving $2.7 billion of American Rescue Plan funds to address Illinois’s unemployment insurance trust fund deficit of $4.5 billion. The unemployment trust fund will remain $1.8 billion in deficit. We are encouraged that the administration and the legislature are taking steps to address the deficit and hopeful negotiations will continue to address the remainder of the $1.8 billion deficit.  

The Illinois Commerce Commission to start implementing highway-rail safety capital projects for local roads across the state. For the next five years, the ICC is expected to spend $386 million to help communities and railroads pay for improvements at nearly 900 crossing locations. 

The Department of Commerce and Economic Opportunity is requesting a modification to the Reimagining Electric Vehicles (REV) Act. The REV act offers tax incentives to manufacturers of electric vehicles or electric vehicle parts to relocate to Illinois. DCEO recommended removing the language that defines EVs as vehicles exclusively powered by electricity and permitted to operate on public roadways. Removing this condition would incentivize other types of manufacturing of EV vehicles. DCEO is also requesting to remove the requirement that an EV vehicle must plug in to qualify, opening the door to hydrogen fuel cell and solar technology manufacturers to qualify for REV.  

Discussions are underway on what to do about the increasing prices of gas. Governor Pritzker has suggested freezing the Motor Fuel Tax for a year to temporarily lower the state sales tax on fuel. Republicans have introduced legislation that would cap sales tax going forward to 18 cents per gallon instead of it rising with the price of gasoline.  

Illinois Board of Elections released the unofficial 2022 primary ballot order following a ballot position lottery.  

On March 23, the Iowa Legislature passed legislation addressing unemployment benefits. House File 2355 shortens the maximum amount of unemployment from 26 weeks to 16 weeks, redefines a suitable job and requires unemployed workers to accept lower-paid offers earlier in their job search. The Senate’s version introduces a one-week waiting period before receiving unemployment benefits. The House will need to approve the Senate’s version, or the chambers must come up with a compromise bill before it can go to Governor Kim Reynolds’ desk.   

The Senate also approved Senate File 2372, a second tax reform bill that includes many of the provisions that were left out of House File 2317. Some of these include lowering the franchise and premium taxes on banks and insurance companies, eliminating the business property tax credit and exempting food from the sales and use tax. Senator Dawson, Chair of the Ways and Means Committee, also held a subcommittee on a third tax proposal, Senate Study Bill 3157 on Wednesday. SSB 3157 relates to funding the Iowa Water and Land Legacy Trust by changing local option sales taxes. It passed out of subcommittee and is likely to be considered in committee next week.  

The House continued to pass its budget proposals over to the Senate, including the Administration and Regulation, Transportation, Justice Systems, Judiciary, and Agriculture and Natural Resources budgets. An amendment to the Administration and Regulation budget was included that would limit the use of eminent domain for a period, impacting projects such as the three carbon pipeline projects in Iowa.  

The filing period for candidates for statewide and legislative races closed on March 18. Find the complete list of primary candidates for all 2022 races on the Secretary of State’s website.