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Illinois Approves $55.2B Budget, Leaves $770M Transit Gap Unresolved

A special session is planned to plug a $770 million transit funding gap after lawmakers failed to pass a funding reform bill.

Chicago Transit Authority (CTA) L trains in the Loop neighborhood of Chicago, Illinois, US, on Thursday, Aug. 15, 2024. Roughly 50,000 people are expected in Chicago for the DNC, and local leaders are keen to buff up Chicago’s pandemic-dinged image as Chicago’s transit system overall ridership sat at 60% of pre-pandemic passenger levels at the start of 2024. Photographer: Al Drago/Bloomberg via Getty Images
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A Metra train leaves the Ogilvie Transportation Center March 20, 2025, in Chicago. (Armando L. Sanchez/Chicago Tribune)
People stand at the balcony in the Illinois State Capitol in Springfield on May 28, 2025. (John J. Kim/Chicago Tribune)

Overview

  • Lawmakers met the May 31 deadline to pass a $55.2 billion FY 2026 budget that relies on over $1 billion in new taxes on tobacco, sports betting and out-of-state companies.
  • The budget cuts the Health Benefits for Immigrant Adults program, removing coverage for nearly 33,000 residents aged 42 to 64 while preserving $110 million for seniors over 65 without legal status.
  • No state dollars were allocated to the Chicago Transit Authority, Metra or Pace, creating a $770 million shortfall that could force up to 40 percent service reductions and 3,000 layoffs.
  • A standalone transit reform bill that would have imposed a $1.50 delivery fee and created a Northern Illinois Transit Authority passed the Senate but stalled in the House before the deadline.
  • Officials say legislators will return for a special session this summer to secure new revenue streams and restructure oversight to avert severe transit cuts.