Overview

• Executive Order 2025-05 requires agencies to identify up to 4% of FY2026 General Funds for reserves rather than immediate program cuts.
• Agencies must limit nonessential spending and travel, review hiring for only essential roles, and propose program changes if shortfalls emerge.
• Progress reports are due to the Governor’s Office and the Governor’s Office of Management and Budget within 30 days, and the order takes effect immediately.
• Pension payments, K-12 education funding, and offices outside the governor’s authority are excluded from the directive.
• Pritzker cites President Trump’s budget bill and tariffs, recent Illinois job losses, and strains in agriculture and health care as reasons for the action.