This week's Illinois State Association of Counties (ISACo) News and Views E-Newsletter provides information about the recently signed state Medicaid omnibus bill, highlights the enactment of hemp regulation legislation, announces the federal Office of Management and Budget (OMB) proposal to change federal grant administration rules, reports on the Illinois Department of Revenue (IDOR) local sales tax rate changes, shares the Illinois employment rates for May, encourages county officials and staff to register for the 2026 National Association of Counties (NACo) Annual Conference, links to articles ISACo staff is reading to stay informed, conveys information about upcoming NACo webinar opportunities, highlights ISACo corporate partner Intergovernmental Personnel Benefit Cooperative, and invites counties to join ISACo.

Governor Pritzker Signs Medicaid Omnibus Bill into Law

Governor JB Pritzker signed SB 3365 into law in anticipation of significant changes to the healthcare system in Illinois due to the federal HR 1 legislation. This law will deliver significant reforms to Illinois’ hospital system and long-term care industry. The bipartisan Fiscal Year 2027 Medicaid Omnibus bill will strengthen the ability of the Illinois Department of Public Health (IDPH) and the Illinois Department of Healthcare and Family Services (HFS) to detect hospital financial distress, assist financially vulnerable hospitals, ensure transparency, and prevent service disruptions that could negatively impact Illinois residents.

The press release is available via this link. 

Illinois Enacts Hemp Regulation Legislation into Law

Following several years of debate, Illinois enacted sweeping legislation in 2026 to regulate intoxicating hemp products, including delta-8 THC and certain hemp-derived beverages and edibles. Signed into law by Governor JB Pritzker on June 12, the measure brings much of the previously unregulated hemp market under the state's cannabis regulatory framework, establishes age restrictions, requires child-resistant packaging and product testing, and prohibits marketing designed to appeal to children. Most intoxicating hemp products will be limited to licensed cannabis dispensaries, while non-intoxicating products such as CBD topical products remain unaffected. State leaders said the legislation is intended to close regulatory loopholes and enhance consumer protections, while opponents expressed concerns about the impact on small businesses and product availability. The new law takes effect in November 2026.

The press release is available via this link.

OMB Proposes Changes to Federal Grant Administration Rules

The federal Office of Management and Budget is seeking comments on a proposed rule that would revise federal grant administration requirements. The proposal could affect how counties manage federal funds, including budgeting, procurement, compliance, reporting and audits. Comments are due by July 13, 2026. Additional information is available via this link. 

IDOR Posts July 1 Local Sales Tax Rate Changes

The Illinois Department of Revenue has issued an informational bulletin summarizing local sales tax rate changes that will take effect on July 1, 2026. The bulletin includes changes involving business district sales tax, county public safety tax, home rule municipal sales tax, Metro-East Mass Transit District sales tax and non-home-rule municipal sales tax. County administrators, treasurers, finance officers and retailers may wish to review the bulletin for any changes affecting their jurisdictions. Additional information is available via this link. 

Employment Rates for May

The Illinois Department of Employment Security (IDES) announced that the unemployment rate remained at 5.1 percent in May, unchanged from April, and up +0.7 percentage point from the same month, one year ago, based on data provided by the U.S. Bureau of Labor Statistics (BLS). The revised April unemployment rate was 5.1 percent.

Total nonfarm payrolls saw a third consecutive over-the-month increase in May, up +6,000 (+0.1%) to 6,164,800. The April monthly change in payrolls was +11,400, unchanged from the preliminary report. The May payroll jobs estimate and unemployment rate reflect activity for the week including the 12th.

The press release is available via this link. 

Registration Open for NACo Annual Conference

The NACo Annual Conference is the premier gathering of elected and appointed officials from the nation’s 3,069 counties, parishes and boroughs. This year's conference will be in New Orleans, Louisiana, from July 17-20.

The conference will include dozens of committee and caucus meetings, educational workshops, general sessions and more. Sessions will offer learning and best practices on the full range of county responsibilities and domestic policy issues. NACo membership will also elect new leadership and set the organization's policy priorities during the Annual Business Meeting. The Illinois Counties Dinner will be held on Friday, July 17.

Registration is available via this link.

What We're Reading

Illinois Drivers Could Face Higher Tolls Next Year (ChicagoTribune)

Report: The States Where Corporate Landlords Own the Most Housing (Governing)

Federal Cuts are Hitting Illinois Food Assistance Recipients — and the Farmers Who Feed Them (CapitolNewsIllinois)

Relief for Older Drivers Arrives July 1 as State Raises Age Mandate for Road Tests (DailyHerald)

Upcoming NACo Webinars

NACo has announced the following upcoming webinar opportunities. ISACo is a proud partner with NACo and encourages counties to participate in NACo membership and activities. 

Collaborative Leadership Leads to Housing for All

Wednesday, June 24, 2026, 1 p.m. - 2:00 p.m. CST

Join the National Association of Counties and the National Association of Homebuilders for a conversation on approaches to advancing attainable housing solutions in communities across the country. This webinar will explore how local leaders are building consensus, fostering collaboration and advancing practical housing strategies that meet the needs of residents.

Rural Resilience & Strategic Responses to the Opioid Epidemic

Thursday, June 25, 2026, 1:00 p.m. - 2:00 p.m. CST

Rural communities are often characterized by strong social ties, local innovation, and a deep commitment to supporting neighbors in times of need. At the same time, they face unique challenges in responding to the opioid epidemic, including limited access to care, healthcare workforce shortages, and transportation barriers. Yet with new opportunities through Rural Health Transformation funding, opioid settlement dollars, and other targeted investments, counties have a critical window to make strategic decisions that can save lives and strengthen communities.
 
This webinar will highlight how rural counties are leveraging these resources to build coordinated, sustainable opioid response strategies. Learn how local leaders are strengthening partnerships, building coalitions, expanding prevention and recovery efforts, increasing naloxone distribution, and investing in measurable solutions tailored to their communities. Hear practical examples of what is working on the ground and how counties can have lasting impacts with the resources available to them.
 
Learning objectives and key takeaways:

• Identify key challenges that rural communities face impacting health and well-being and emerging opportunities to address them.
• Describe strategies that rural counties are taking to respond to the opioid epidemic and strengthen community response efforts.
• Evaluate opportunities to align local investments and community priorities to support sustainable opioid-response strategies in rural communities. 

Registration is available via this link. 

Bolstering Operations and Trust in Your County through Election Excellence

Thursday, June 25, 2026, 2:30 p.m. - 3:30 p.m. CST

Join the National Association of Counties and the National Association for a discussion with county election officials from across the country to learn about the U.S. Alliance for Election Excellence’s newly launched nonpartisan Certification Program and how it can support efforts in your county to strengthen operations, increase public trust, and recognize excellence. In this conversation, we will highlight nonpartisan standards that can enhance professionalization and collaboration across the entire county ranging in topics from communications, emergency planning, and funding and budgets. Come learn about how participation in this program can position your county as a national leader in elections and beyond!

NACo Policy Insider Webinar Series: Understanding the Federal Landscape for Counties, July 2

Thursday, July 2, 2026, 2:30 p.m. - 3 p.m. CST

Last year's Inside Washington series is now NACo Policy Insider, a bi-weekly webinar offering an overview of the full federal policy landscape impacting counties, as well as deeper dives into specific policy areas, equipping county leaders with insights, context, and strategies to engage effectively on key issues from transportation and infrastructure, to public lands, to health and human services, and more.

Registration is available via this link. 

CORPORATE PARTNER SPOTLIGHT     

 

IPBC is a partnership of Illinois local government entities who are committed to the philosophy of risk pooling and working together to provide cost-effective health and related benefits to their employees and their families.

Click here to learn more about IPBC.

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