Overview
- By declining to veto or sign, the $16.6 billion 2026 budget will become law by default within five business days, avoiding disruption to services and paychecks.
- Johnson signed executive orders barring the sale of individual medical debt and requiring mayoral and City Council approval for any police overtime that exceeds the budget.
- The council-backed plan drops the mayor’s corporate head tax and instead raises revenue through a higher plastic bag fee, changes to liquor and cloud leasing taxes, ads on city property, legalizing video gaming in bars and restaurants, and selling portions of unpaid city debt.
- The budget restores a full advance pension payment and includes a large TIF surplus for Chicago Public Schools, measures supporters say strengthen fiscal footing.
- City budget officials warn the enacted plan relies on optimistic assumptions and could leave a roughly $163 million gap in 2026, potentially forcing midyear cuts or other fixes; the package passed 29–19 on revenue and 30–18 on spending after aldermen said they could override a veto.