SPRINGFIELD — Today, the Illinois General Assembly passed a $55.9 billion state FY27 budget centered on making Illinois more affordable for working families, protecting long-term financial stability, and fulfilling the state’s core obligations.

While federal actions and funding cuts keep driving up prices and fueling national economic uncertainty, the FY27 budget prioritizes making housing, education, and health care more affordable and accessible for Illinoisans. Supported by seven years of progress, this eighth consecutive balanced budget strives to maintain the state’s long-term fiscal health while investing in the people who call Illinois home and the economic opportunities that make it the best state to live, work, and do business.

“Every element of the budget for the upcoming fiscal year was thoroughly deliberated with the aim of achieving widespread affordability for all Illinoisans,” said Governor JB Pritzker. “It builds upon seven years of fiscal discipline and efforts to make our state competitive in national and international industries. I look forward to signing the FY27 budget and delivering for Illinois’ working families in all stages of life – whether they are seeking tuition assistance to attend community college, preparing to enter the workforce, hoping to buy their first home, or requiring medical debt relief after receiving health care.”

“For the eighth consecutive year, Illinois has passed a balanced budget that proves fiscal responsibility and compassion can go hand in hand,” said Lt. Governor Juliana Stratton. “Even amid federal uncertainty, we remain committed to investing in people, strengthening our communities, and ensuring every Illinoisan has the opportunity to thrive.”

“In the face of economic uncertainty and devastating federal cuts, Illinois chose stability, responsibility and compassion,” said Senate President Don Harmon (D-Oak Park). “This budget strengthens support for working families, protects access to hospitals and health care, invests more than 300 million new dollars in public education and provides relief for parents through a sales tax-free shopping holiday, and it does it all without raising the state income tax or sales tax. I’m grateful to Governor Pritzker, Speaker Welch and the members of the General Assembly for working together to once again achieve our shared goal of a responsible budget focused on protecting the people of the great state of Illinois.”

“We came into this session focused on meeting the challenges of this moment with decisive action, and the conversations families are having around their kitchen tables guided our agenda for Illinois. The results are a promise kept: A state budget that works for families’ budgets. Smart investments in the lifesaving services Washington is trying to slash. And while Washington’s agenda makes everything more expensive, we have focused on affordability,” said House Speaker Emanuel ‘Chris’ Welch. “No state can stop costly tariff schemes, reopen the global supply chain, or bring down the price of oil, but we can take charge of what we can control to provide people with some relief right now.”

“As chair of the Senate Appropriations Committee, I knew we couldn’t sit by while children in our state go hungry because of the cruel actions of the federal administration. That’s why we worked to make sure this budget not only strengthens vital safety net programs – but also lays a foundation for Illinois to step up where the federal government has stepped away,” said Senate Appropriations Leader Elgie R. Sims, Jr. (D-Chicago). “A state-level emergency SNAP replacement benefit will strike at the root causes of hunger so people can put food on the table, protecting thousands of vulnerable families from having to make the impossible choice between food and other basic necessities.”

“While so much feels out of our control, this budget is about taking charge of what we can control,” said Majority Leader Robyn Gabel. “It’s about ensuring every day doesn’t have to feel like a struggle. And it’s about our belief that we shouldn’t have to choose between being compassionate and being responsible. Illinois will choose to be both.”

Despite these challenges, including economic uncertainty driven by the Trump Administration’s policies and proposed federal funding cuts, Governor Pritzker and the General Assembly delivered a balanced budget that puts working families first. The FY27 budget fulfills the state's core obligations by fully funding pensions and increasing evidence-based funding for K-12 schools, all while limiting discretionary spending. At a time when states across the country are bracing for economic uncertainty, Illinois is continuing its record of fiscal discipline, protecting taxpayers, and investing in the priorities that make life more affordable for working families in Illinois.

Some highlights of the FY27 budget include:

Making Everyday Costs More Affordable:

• Motor Fuel Tax Pause: As families face higher costs driven by economic uncertainty and rising energy prices, Illinois is pausing the annual July 1 Motor Fuel Tax increase for six months.
• Back-to-School Sales Tax Holiday: Families shopping for school supplies, clothing, computers, and other school necessities will not pay state sales tax from August 7-16, 2026.
• Nearly $100 Million to Help Families Afford Groceries and Food: The FY27 budget invests nearly $100 million to help families put food on the table, including:
  • $70 million for the Families Receiving Emergency Support for Hunger (FRESH) Program by providing one-time payment of $400 to Illinois families kicked off of SNAP by the Trump Administration.
  • $17.5 million for support of school districts’ free breakfast and lunch programs.
  • $12 million in new funding for the Illinois Grocery Initiative to address inadequate access to fresh foods in food deserts.

Making Housing More Affordable

• $250 million for new missing middle and affordable housing programs at IHDA and DCEO.
• $100 million for a new Missing Middle Housing Infrastructure (M2I) Grant Program at DCEO.
• Connect developers to the capital needed to construct new, affordable homes.
• $100 million for missing middle and other affordable housing programs at IHDA.
• $50 million for Opening Doors and SmartBuy down payment assistance programs at IHDA.

Making Education More Accessible

• $350 million investment in the Evidence-Based Funding (EBF) Formula for K-12 education to achieve the statutory target for annual funding increases. This investment brings the total EBF program to $9.2 billion, a $2.5 billion increase to the annual funding level during the Pritzker Administration.
• $721.6 million to maintain the Monetary Award Program (MAP) funding level, representing a $320 million, or an 80%, increase for MAP since 2019.

Making Healthcare More Attainable

• Medical Debt Relief: Includes a new $5 million GRF deposit into the Medical Debt Relief Pilot Program Fund. The Medical Debt Relief Program has been wildly successful. The initial $10 million state investment has resulted in more than $1 billion in erased debt for more than 530,000 Illinoisans across all 102 counties of the state.

Legislative Affordability Initiatives:

In addition to the budget package, the General Assembly passed several pieces of legislation that will lower costs that the Governor outlined in his State of the State address earlier this year including:

• Junk Fee Ban Act: Bans hidden and deceptive fees so consumers see upfront pricing and can keep more money in their pockets.
• Homeowners and Auto Insurance Reforms: Provides transparency and accountability in insurance rate setting to better protect consumers from unfair or unjustified premium increases while maintaining a strong insurance market in Illinois.
• Know Before You Owe: Helps students avoid predatory and high-cost private student loans by ensuring they first understand and exhaust available federal financial aid options before taking on more expensive private debt.

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