Overview

• Executive Order 2025-05 instructs agencies to identify up to 4% of general fund appropriations for FY2026 as reserves and to implement immediate efficiency measures.
• The directive limits nonessential spending and travel, requires hiring reviews focused on essential roles, and readies program changes or transfers if shortfalls emerge.
• Agencies must submit progress reports to the Governor’s Office and the Governor’s Office of Management and Budget within 30 days.
• Pension payments, K‑12 funding, and entities outside the governor’s authority are excluded from the order.
• Republican leaders criticized the move as political and warned it could presage tax hikes, while Pritzker called the 4% target a starting point to brace for Medicaid and SNAP cuts and tariff-related revenue pressure.