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Chicago Finance Committee Rejects Johnson’s Tax Plan, Stalling 2026 Budget

The defeat forces renewed negotiations before a year-end deadline.

Overview

  • The committee voted 25–10 to defeat roughly $600 million in new revenues, including a $21-per-employee monthly head tax on companies with at least 100 workers.
  • Attempts to delay a vote failed after Finance Chair Pat Dowell’s recess motion was tabled 24–7 and a later bid to recess tied 18–18, clearing the way for the rejection.
  • Mayor Brandon Johnson said he would veto any budget that raises property taxes, grocery taxes or garbage fees and asserted the corporate head tax remains in his proposal.
  • Budget officials warned that without new revenue, funding for violence prevention and youth jobs could face service cuts, while the plan also sought $1.8 billion in borrowing for capital projects, settlements and retroactive pay.
  • Opponents pointed to rising homeowner tax bills and declining downtown commercial values as reasons the head tax could hurt hiring, and the setback follows last year’s council refusal to approve a major property tax increase.