From State Rep. Dan Ugaste:
Democrats Pass $55.2 Billion Budget
Another year, another budget, and another near-record-breaking spending increase.
Just before midnight on the last day of the legislative session, Illinois House Democrats passed the FY26 budget that will cost taxpayers more than $55.2 billion, a $2 billion increase over last year.
State spending under Governor Pritzker has grown exponentially since he took office in 2019. When he took over as Governor, state expenditures were $40.3 billion. Each year since we have seen state spending grow and we now have a budget that is $15 billion higher than when he took office.
When Governor Pritzker delivered his Budget Address in February, he said, “If you come to the table looking to spend more – I’m going to ask you where you want to cut.”
Unfortunately, that did not hold true. The newly passed budget contains $1 billion in tax hikes and fund sweeps to pay for new spending, as well as pork barrel projects for Democrats.
For several years in a row, the Democrats have negotiated spending plans behind closed doors, excluded Republican input, rejected accountability, and raised taxes on Illinoisans in order to quench their never-ending thirst to spend more money.
House Republicans have repeatedly offered to work to craft a balanced budget without tax hikes, but were once again completely shut out of the process.
Here’s what some of our legislative members are saying:
“Rather than pursuing meaningful structural reforms to secure our state’s future, Democrats chose to prioritize politician pay raises, steal from the rainy-day fund, and funnel money into their own pork projects.” ~ House Minority Leader Tony McCombie
“The tax-and-spend budget passed by Illinois Democrats is completely irresponsible. It’s a $55 billion budget that relies on $1 billion in new taxes, a massive number of fund sweeps, and hundreds of millions of dollars in Road Fund diversions. What’s in this budget? Pay raises for politicians. Nearly $250 million in pork projects for Democratic legislators aka the ‘Democratic Majority Slush Fund’ and an additional $100 million slush fund for the Governor. ~ Deputy House Republican Leader and Republican Budgeteer Norine Hammond
“This budget is a disaster for hardworking Illinois families. A billion dollars in new taxes, hundreds of millions of dollars in Road Fund diversions, and a massive number of fund sweeps are how the Democrats filled the budget hole created by their reckless spending. There’s no property tax relief or tax cuts for working families anywhere to be found in this budget. But Democrats are spending $110 million of our tax dollars on welfare benefits for illegal immigrants. Tax, spend, repeat!” ~ Assistant Republican Leader C.D. Davidsmeyer
$1 Billion in New Taxes and Fund Sweeps
The $55.2 billion budget for Fiscal Year 2026 is reliant on one-time revenues and a billion dollars in tax hikes and fund sweeps.
The Budget and Revenue Package consisted of three major components:
- FY26 Budget Appropriations – SB 2510
- FY 26 Budget Implementation Bill (BIMP) – HB 1075
- FY 26 Revenue Package – HB 2755
Democrats imposed a laundry list of new taxes and money was swept from dedicated funds paid for by user fees to prop up the Democrats’ wasteful spending.
Ultimately, Democratic lawmakers voted to raise their own pay, impose new taxes, and make life in general a lot more expensive for already cash-strapped Illinois taxpayers.
Below is a list of major revenue changes that were included as part of the FY26 budget, which includes tax increases, fund sweeps, pauses in statutory transfers, among other items.
| Revenue Used to Balance the Budget | ||
| Tax Changes | Bill Number | Estimated Value |
| Delinquent Tax Payment Incentive Program | HB 2755 | $228 million |
| GILTI tax treatment of global intellectual property | HB 2755 | $200 million |
| Pause final shift of State sales tax on tor fuel to Road Fund | HB 2755 | $171 million |
| Tobacco/Nicotine products tax hike, including e-cigarettes, pouches | HB 2755 | $79 million |
| Move to “Finnegan” method for interstate income allocations | HB 2755 | $72 million |
| Per-wager tax on Tier 1/Tier 2 sportsbook wagers | HB 2755 | $36 million |
| Telecommunications tax increase ($74m total/$35m – GRF share) | HB 2755 | $35 million |
| Franchise Tax Amnesty | HB 2755 | $5 million |
| Other changes involving motor vehicle use tax and rolling stock | HB 2755 | ??? |
| Subtotal | $826 million | |
| Fund Sweeps and Transfers | ||
| Pause statutory transfers into the Rainy Day Fund (one year) | HB 1075 | $45 million |
| Various Funds swept into new BRIDGE Fund | HB 1075 | $100 million |
| Sweep newly created Prescription Drug Affordability Fund (PBM Bill) | HB 1075 | $140 million |
| Sweep Insurance Producer Administration Fund to GRF | HB 1075 | $20 million |
| Sweep IL Agricultural Loan Guarantee Fund to GRF | HB 1075 | $6 million |
| Sweep Illinois Farmer and Agribusiness Loan Guarantee Fund | HB 1075 | $4 million |
| Subtotal | $315 million | |
| Running Grand Total | $1.141 billion | |
