The following is an overview of actions taken, or in some cases not taken, by the Illinois General Assembly during the 2026 spring legislative session.

The 104th Illinois General Assembly completed its work for the spring and adjourned in the early morning hours on Monday, June 1.

During the 2026 spring legislative session, more than 3,000 bills were filed. 

In total, 395 bills were approved by both chambers. Put another way, approximately 13 percent of introduced House and Senate bills will make it to the Governor's desk.  

The General Assembly is scheduled to return for the Fall Veto Session from November 17-19 and December 1-3.

This News and Views e-newsletter provides an initial overview of the more consequential legislation approved during the second year of the 104th General Assembly. Key legislation that was not approved is also referenced. 

ISACo is preparing a comprehensive report on legislation approved by both chambers that affects or is of interest to counties. The report will be available in the coming days.

ISACo will highlight bills of interest to counties that were approved by both chambers in future News and Views E-newsletters. Additionally, ISACo will develop useful resources and materials with information about approved legislation pertinent to counties.

State Fiscal Year (SFY) 2027 Budget

Prior to adjournment, Illinois lawmakers approved a $55.945 billion spending proposal. The approved budget includes $55.950 billion in revenues.

The new state fiscal year begins on July 1, 2026.

The budget bills are listed below:

SB 3019 (Senator Villanueva, D-Chicago/Representative Tarver, D-Chicago) is the omnibus state revenue bill that includes provisions estimated to yield an estimated $815 million to $1.4 billion in new state revenues. 

HB 111 (Speaker Welch, D-Hillside/Senator Sims, D-Chicago) is the appropriations bill. It includes $55.950 billion in anticipated revenues and $55.945 billion in expenditures. 

HB 2949 (Representative Guzzardi, D-Chicago/Senator Sims, D-Chicago) is the Budget Implementation bill (BIMP). The BIMP bill effectuates the state budget. 

The SFY 2027 Illinois budget package includes an estimated $815 million to $1.4 billion in new revenue, generated through a combination of tax increases, new fees, and one-time fund transfers. The largest guaranteed revenue increase is a $300 million corporate tax increase achieved by extending and tightening the state's cap on net operating loss deductions. Businesses will face new limits on the amount of prior losses they can deduct against current income.

New Taxes and Fees

The budget also creates several new taxes and fees. A new social media fee on large platforms is projected to generate $200 million annually, while a 0.2 percent tax on digital asset transactions and services is expected to raise $60 million. Illinois will also begin taxing capital gains from certain qualifying small-business stock sales by decoupling from a federal tax exemption, generating an estimated $50 million to $60 million, and will impose a 15 percent tax on fantasy sports contest revenues, projected to raise about $5 million.

Another significant and controversial provision is a new 10 percent tax on targeted digital advertising services, which would apply to companies with more than $1 million in Illinois digital advertising revenue. Revenue estimates range widely, from $200 million to more than $800 million annually, because legal challenges are expected. Opponents argue the tax may violate federal law and constitutional provisions and could be difficult to administer.

Fund Sweeps

In addition to new taxes, the budget relies on approximately $185 million in fund sweeps. This includes transferring $150 million from the Road Fund, supported in part by gasoline sales tax revenues, to the General Revenue Fund for general state operations, as well as $35 million from a federal coronavirus relief fund. These transfers provide one-time revenue to help balance the budget but do not represent recurring sources of funding.

Motor Fuel Tax Increase Delay

The budget package includes a six-month delay of the scheduled July 1 increase in the state Motor Fuels Tax, postponing a planned 1.3-cent-per-gallon increase. Lawmakers estimated the delay would reduce fuel tax collections by approximately $37.5 million. The budget also transfers $150 million from the Road Fund to the General Revenue Fund, using revenues generated from state sales taxes on gasoline.

Local Road Fund

The budget includes an additional allocation of $300 million to the Illinois Department of Transportation (IDOT) Local Road Fund. 

SNAP Funding

In addition, the budget establishes the Families Receiving Emergency Support for Hunger (FRESH) Program, which provides a one-time $400 payment to individuals who recently lost Supplemental Nutrition Assistance Program (SNAP) benefits after failing to meet work requirements. Lawmakers estimate the program will cost approximately $60 million. The proposal had previously been introduced as separate legislation before being included in the budget package.

STATE SHARED REVENUES

No Cut to LGDF: Distributions into LGDF Remain at SFY 2026 Level

The amount of Local Government Distributive Fund (LGDF) revenue as a percentage of state income tax collections will remain at 6.47 percent of income tax collections in SFY 2027. In other words, there is no change in the percentage share compared to the current state fiscal year.

ISACo placed a priority on averting cuts to LGDF after Governor Pritzker had proposed reducing LGDF distributions to 6.28 percent of income tax distributions. We extend our appreciation to the Governor and state legislators for standing with counties and municipalities. ISACo will continue to work with our coalition partners to advocate for a restoration of LGDF distributions to the full 10 percent received by counties and municipalities prior to 2011. ISACo has prepared more information about LGDF in a Policy Brief. This resource will be updated following enactment of the new budget. 

Personal Property Replacement Tax Diversions

The General Assembly continued the practice of diverting Personal Property Replacement Tax (PPRT) revenue away from local governments for use by the state for other purposes. The amount of the diversion in the SFY 2027 budget exceeds $407 million. ISACo has a Policy Brief with more information about PPRT that will be updated following enactment of the new budget. 

KEY LEGISLATION APPROVED BY BOTH CHAMBERS

In addition to the budget, the General Assembly considered and approved several bills of significance for counties during the final days of the spring session. Those bills are included below:

Energy Bill

HB 1700 (Representative Williams, D-Chicago/Senator Stadelman, D-Rockford) amends the Illinois Power Agency Act and the Public Utilities Act to modify various clean energy and utility programs. The bill authorizes limited additional funding for the Illinois Solar for All Program through May 31, 2028, lowers the geothermal system size threshold that triggers prevailing wage requirements, and revises distributed storage rebate eligibility and compensation limits. The bill also modifies the process for resolving disputes between energy facility developers and local governments by authorizing the Illinois Commerce Commission to issue siting certificates when a local government fails to adopt a siting or zoning ordinance that complies with State siting law, provided the developer gives at least 60 business days' notice before filing a petition. Effective June 1, 2026. The bill passed both chambers. ISACo Opposes

PFAS Action Plan

HB 2955 (Representative Rashid, D-Bridgeview/Senator Ram Villivalam, D-Chicago) creates the PFAS Wastewater Citizen Protection Act, establishing a dedicated Committee tasked with creating, updating, and submitting an annual PFAS Action Plan to the Governor's Office, the General Assembly, and the Illinois Environmental Protection Agency. The bill passed both chambers. ISACo Supports

Property Tax Sales Reform

HB 4537 (Representative Tarver, D-Chicago/Senator Villanueva, D-Chicago) would fundamentally restructure the Illinois Property Tax Code to end the practice of "absolute forfeiture." The bill was approved as a response to the U.S. Supreme Court’s landmark Tyler v. Hennepin County ruling Under the bill, local governments and tax buyers can no longer absorb a property's total equity to satisfy a smaller tax debt. Instead, the historical system will be replaced by a mandatory Judicial Tax Deed Auction designed to establish a property's true market value through public bidding. Any auction proceeds that exceed the underlying tax debt, interest, and administrative costs must be deposited with the County Treasurer and returned to the former owner. Additionally, the bill establishes county-level, fee-funded Surplus Equity Funds to protect former owners if a public auction fails to draw private bids, while significantly upgrading bilingual due process and notification requirements to ensure property owners understand their equity rights. The bill passed both chambers. ISACo Supports

Affordable Housing Tools

HB 4571 (Representative Deuter, D-Westmont/Senator Ellman, D-Naperville) amends the Counties Code to authorize certain counties to acquire, transfer, lease, sell, and otherwise use real property, financial incentives, infrastructure improvements, and other tools to create and preserve affordable housing for households earning up to 140 percent of the area median income. Applies to counties with populations between 750,000 and 2 million, as well as certain county executive counties with populations between 650,000 and 2 million and takes effect immediately. The bill passed both chambers. ISACo Supports

Rental Fees

HB 3564 (Representative Syed, D-Palatine/Senator Simmons, D-Chicago) amends the Landlord and Tenant Act to establish new rental fee transparency requirements for residential leases. The bill requires landlords to clearly and conspicuously disclose all non-optional fees in residential property listings or through an accompanying web link at the time of listing and to include all non-optional fees on the first page of a lease agreement. Tenants are not liable for fees that are not properly disclosed, and landlords must indicate whether utilities are included in the rent. The legislation also prohibits certain fees and fines, including excessive rental application or background check fees, fees intended to duplicate tenant screening costs, fees for lease modifications or renewals, after-hours maintenance request fees, and pest abatement charges when the tenant did not contribute to the infestation. The bill creates a private right of action for violations, prohibits landlords from renaming fees to avoid compliance, limits the concurrent exercise of home rule powers if inconsistent with the Act, and applies to residential lease agreements entered into after the effective date of the Act. The bill passed both chambers. ISACo Opposes

HB 5234 (Representative Syed, D-Palatine/Senator Simmons, D-Chicago) includes language specifying that, if and only if HB 3564 (above) becomes law, then the effective date of that bill becomes January 1, 2027. The bill passed both chambers. No Position

IMRF Death Benefit Increase

SB 2802 (Senator Holmes, D-Aurora/Representative Walsh, D-Joliet) increases the IMRF death benefit from $3,000 to $8,000. The bill passed both chambers. No Position

PEDA Expansion

SB 3076 (Senator Edly-Allen, D-Grayslake/Representative Johnson, D-East Moline) expands the scope of the Public Employee Disability Act (PEDA) in a way that directly increases counties’ financial costs, particularly for sheriff’s offices and correctional operations. The bill passed both chambers. ISACo Opposes

Hemp Regulation

SB 3222 (Senator Lightford, D-Maywood/Representative Guzzardi, D-Chicago) creates the Illinois Hemp Act and establishes a comprehensive regulatory framework for the production, manufacture, distribution, and sale of hemp products in Illinois. It requires licensing and authorization for hemp-related activities, creates the Illinois Hemp Regulatory Fund, provides for enforcement actions and penalties, and incorporates violations into the Consumer Fraud and Deceptive Business Practices Act. The legislation also dissolves the Industrial Hemp Regulatory Fund, limits home rule authority in this area, and repeals the Industrial Hemp Act effective November 12, 2026.

The bill makes significant changes to Illinois’ medical cannabis and adult-use cannabis laws. It updates definitions and regulatory requirements, modifies provisions concerning patients, caregivers, dispensing organizations, licenses, taxes, possession limits, laboratory testing, and operational standards, and authorizes the Department of Financial and Professional Regulation to issue, update, and enforce dispensing organization licenses. The legislation also repeals the Social Equity Justice-Involved Medical Lottery, expands references to infuser organizations, and eliminates the repeal date for the Community College Cannabis Vocational Program.

In addition, the legislation amends numerous related statutes, including tax laws, the Illinois Vehicle Code, the Cannabis Control Act, and the Tobacco Accessories and Smoking Herbs Control Act, to conform state law to the new hemp and cannabis regulatory framework. The Act takes effect immediately, except for the creation of the Illinois Hemp Act and the repeal of the Industrial Hemp Act, which take effect on November 12, 2026. The bill passed both chambers. No Position

E-Bike Regulations

SB 3484 (Senator Ram Villivalam, D-Chicago/Representative Hernandez, D-Aurora) amends the Illinois Vehicle Code to establish titling requirements for certain higher-powered electric motor-driven cycles and gas-powered bicycles, while exempting electric micromobility devices from titling, registration, licensing, and insurance requirements. It also creates operational rules for toy vehicles, motor-driven cycles, and electric micromobility devices, including signage requirements for areas where motor-driven cycles are prohibited and restrictions on passengers for operators under age 18.

The bill further authorizes the Department of Natural Resources and local park, forest preserve, conservation, and transit districts to regulate the use of low-speed electric bicycles on property under their jurisdiction. It also makes conforming changes to related state laws and takes effect January 1, 2027. The bill passed both chambers. No Position

Lead Service Line Notifications

SB 4025 (Senator Villivalam, D-Chicago/Representative Olickal, D-Chicago) would amend the Environmental Protection Act to allow community water supplies alternative methods for notifying building owners of lead service lines. It also mandates that property owners statewide, or legal occupants if the owner is unavailable or unwilling, must grant water supplies free access to replace lead or galvanized service lines at no cost, while shielding occupants from liability. The bill passed both chambers. No Position.

KEY LEGISLATION THAT DID NOT ADVANCE

Several significant bills did not make it through both chambers in the waning days of the spring legislative session. Those bills are listed below:

Veterans Assistance Commissions

SB 3646 (Senator Porfirio, D-Burbank) would have modified the Military Veterans Assistance Act to expand the structure for delivery of veterans services, broaden eligibility for assistance, reduce county board authority over VACs, create new enforcement mechanisms and increase oversight and compliance requirements. This bill may be considered during the Fall Veto Session. The bill did not pass. ISACo Opposes

BUILD Act

ISACo previously reported on our opposition to specific bills that were part of the Governor's BUILD Act intended to create more affordable housing stock. Some bills amended the Counties Code to preempt local authority. Those bills, as well as legislation only impacting municipalities, did not advance out of either chamber. 

Elections

HB 1832 (Representative Smith, D-Chicago/Senator Cunningham, D-Beverly) was intended to receive an amendment with several provisions concerning elections. The bill was not considered prior to adjournment. Under Review

Data Center Regulation

Senate Amendment 1 to SB 1050 (Senator Hills, R-Barrington Hills) would expressly authorize counties and municipalities to establish local standards governing the construction and siting of data centers through local ordinance. The bill did not pass. ISACo Supports

SB 4016 (Senator Ram Villivalam, D-Chicago/HB 5513 - Representative Gabel, D-Evanston) is the Protecting Our Water, Energy, and Ratepayers (POWER) Act that proposes a comprehensive regulatory framework for large-scale data centers in Illinois in response to concerns over their growing electricity and water demands. The legislation would have required new hyperscale data centers to pay for the utility infrastructure needed to serve their facilities, secure new clean energy resources to offset their power consumption, report energy and water usage, and comply with water resource planning and environmental protection requirements. Supporters argued the measure would protect residential and business utility customers from bearing the costs of data center growth and help safeguard natural resources, while opponents contended the requirements could discourage investment and undermine Illinois' competitiveness in attracting data center development. The legislation did not advance to final passage during the 2026 spring legislative session. The bill includes unfunded mandates on local governments. The bill did not pass. ISACo Opposes

Megaprojects Bill (Chicago Bears Stadium)

The General Assembly did not approve legislation intended to support a new Chicago Bears stadium development in Illinois, particularly at the team's Arlington Heights property (HB 910 - Speaker Welch, D-Hillside/Senator Cunningham, D-Beverly). The proposal would have allowed qualifying "megaprojects" valued at $100 million or more to negotiate discounted payments in lieu of property taxes (PILOTs), potentially reducing the Bears' property tax obligations on a proposed stadium and surrounding development. The House approved the legislation, but Senate support appeared to collapse near the end of the legislative session, with concerns raised about providing incentives that could encourage the Bears to leave Chicago. The bill did not pass.

The Senate worked on an alternative approach and approved a stadium bill (HB 958 - Representative Avelar, D-Romeoville) that would have empowered home rule governments in Cook County with a population of 70,000 or more to create authorities to help finance and construct professional sports stadiums. This concept is modeled after the Illinois Sports Authority law and would allow for the construction of a stadium while avoiding a property tax obligation for the Bears. The bill passed the Senate but was not considered by the House prior to adjournment. 

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