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7h ago

Pritzker Orders Illinois Agencies to Set Aside Up to 4% of FY2026 Budgets

The directive, effective immediately, is presented as a precaution to shield core services from expected federal policy impacts.

Gov. JB Pritzker answers questions at Harold Washington College in Chicago’s Loop on Sept. 15, 2025. (Brian Cassella/Chicago Tribune)
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Overview

  • Executive Order 2025-05 directs agencies under the governor to identify up to 4% of their FY2026 General Funds for reserves, curb nonessential spending and travel, review hiring, and prepare program changes if shortfalls arise.
  • Agencies must submit progress reports to the Governor’s Office and the Governor’s Office of Management and Budget within 30 days.
  • Pension obligations, K‑12 education funding, and offices outside the governor’s authority, including legislative and judicial branches, are excluded.
  • Pritzker ties the move to President Trump’s budget bill and tariffs, citing pressures on agriculture, expected reductions to Medicaid and ACA coverage, cuts to SNAP, and a cooling labor market, with administration estimates of 330,000 losing coverage and 360,000 families at risk for food aid cuts.
  • Republican leaders criticize the order as political and urge broader spending restraint, while Pritzker says the step builds on prior reserve efforts and a recent tariff-impact review.