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Illinois Legislature Passes $55.2B Budget, Leaves $770M Transit Gap Unfilled

Tax hikes on sports betting, tobacco and large out-of-state firms fund the package with cuts to health coverage for noncitizens aged 42-64.

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People stand at the balcony in the Illinois State Capitol in Springfield on May 28, 2025. (John J. Kim/Chicago Tribune)
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Overview

  • The budget introduces over $1 billion in new revenue through higher taxes on sports betting, tobacco products and a fee on out-of-state corporations.
  • Coverage for nearly 33,000 noncitizens aged 42–64 is eliminated to save about $330 million, while $110 million remains for seniors without legal status.
  • No funding was allocated to address the Regional Transportation Authority’s $770 million shortfall, putting CTA, Metra and Pace at risk of up to 40 percent service cuts and thousands of layoffs.
  • Lawmakers plan a special summer session to consider transit revenue proposals—such as a proposed $1.50 delivery fee—and governance reforms for the RTA.
  • Proposals for state support of a new Chicago Bears stadium failed to advance, leaving megaproject and tax-relief measures out of the final budget.