Chicago Public Schools Faces $734 Million Deficit as Lawmakers Offer No Immediate Aid

Chicago Public Schools is projected to have a $734 million shortfall in its FY26 budget and must pass a balanced plan by the August 28 board vote. State lawmakers held a July 31 hearing on CPS finances but declined to pledge new funding or convene a special session to close the gap. Union leaders and several board members are pressing for a special legislative session and a so-called millionaires tax to secure full funding. Interim CEO Macquline King says CPS has exhausted its limited revenue options and warns that additional midyear cuts and service reductions are likely without new money. State Rep. Curtis Tarver has disputed claims that Illinois owes CPS $1 billion and filed legislation to reinstate the Chicago School Finance Authority for district oversight.