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Chicago Council Passes $16.6 Billion Budget Without Head Tax, Setting Up Veto Test

The mayor now has five days to decide on a veto that could trigger a shutdown.

Overview

  • The 30–18 vote sends an alternative 2026 plan to Mayor Brandon Johnson that excludes his corporate head tax.
  • A veto override would require 34 votes, and failure to enact a budget by Dec. 30 could halt city operations.
  • The package raises taxes on plastic bags, liquor and rideshare trips, boosts cloud levies, adds a first-in-the-nation social media tax, legalizes video gambling, and pursues revenue by selling unpaid city debt.
  • City budget officials say the plan is short by about $163 million and warn of possible midyear layoffs, furloughs or cuts if revenues come up short.
  • Backers highlight a restored full advance pension payment and a major TIF sweep to CPS, while Johnson criticizes the approach as ill conceived and questions its revenue assumptions.