Proposed Budget - Fiscal Year 2026
Illinois Governor JB Pritzker released his fiscal 2026 budget proposal on February 19, which calls for operating expenditures from all funds of $129.4 billion, a 4.0 percent increase from fiscal 2025’s level. General fund expenditures are estimated to be $53.9 billion, a 4.9 percent increase from fiscal 2025’s estimated level. Total state expenditures are comprised of general funds (41.7 percent), special state funds (38.5 percent), federal trust funds (12.2 percent), debt service funds (3.4 percent), highway funds (2.8 percent), state trust funds (1.3 percent), and bond financed funds (0.1 percent). General fund revenues are estimated to be $55.5 billion, a 2.9 percent increase from fiscal 2025’s level. The budget also includes a $2.2 billion rainy day fund, assumes a general fund surplus of $218 million, and fully funds the certified pension contribution.
Proposed Budget Highlights
The proposed budget for fiscal 2026 builds on six years of historic fiscal progress with balanced budgets, nine credit rating upgrades, a $2.2 billion rainy day fund, and an eliminated bill backlog. It continues transformative investments in early childhood education and childcare, K-12 education, higher education, economic development, and efforts to fight poverty. Fiscal 2026 investment priorities include:
Early Childhood Education and Child Care Funding
- Continues funding for the third year of the governor’s early childhood initiative
- Investments include operational funding for the Illinois Department of Early Childhood, Early Childhood Block Grant funding, and funding for Early Childhood Workforce Compensation Contracts
- Other early childhood investments include covering expected increased participation in the Child Care Assistance Program, expansion of Dolly Parton’s Imagination Library, and rate enhancements for the Early Intervention service providers
K-12 Education
- Continuing support of evidence-based funding, increases school categorical grants, additional funding for Career and Technical Education programs to expand access to underserved students, implements State Literacy Plan, and funds the third year of Teacher Vacancy Grant Pilot Program and Computer Science Equity Grant Program
Higher Education
- Increases support for Monetary Award Program (MAP), 3 percent general fund increases for public universities and community colleges, continues funding to support community college investments in dual-credit and non-credit workforce grant programs, and support for the Pipeline for the Advancement of the Healthcare (PATH) Workforce Program.
Health and Social Services
- The proposed Home Illinois appropriation request includes funding for One System Initiative for shelters and other services for homeless populations; court-based rental assistance; emergency and transitional housing; Rapid Rehousing services; and the Home Illinois Workforce Pilot Project
- Funding to maintain violence prevention programs and the services of the Reimagine Public Safety Act
- Additional support for the developmental disabilities division, the Home Services Program for liability and caseload growth, liability and caseload growth in the Child Care Assistance Program, transitioning residents in state-operated centers to appropriate community-based settings, and a 3 percent COLA for TANF cash assistance
- Funds 100 additional positions at the Department of Children and Family Services (DCFS) to address caseloads; invests to help DCFS providers maintain a competitive wage structure; and increases DCFS’s scholarship program
- 6.1 percent increase in funding associated with medical assistance to 3.5 million Illinoisans
- Increases support to ensure healthcare facilities are compliant with regulations
- Additional funding for the Department of Aging’s Community Care Program for caseload growth, the Home-Delivered
- Meals Program, and supporting senior services in rural areas
- Provides funding to onboard staff at the Chicago Veterans’ Home and to support a program to assess the mental health needs of Illinois veterans
Public Safety
- Department of Corrections funding includes increases for personal services to staff correctional facilities, new partnerships with university health service programs, and increases for statewide hospitalization expenses
- Illinois State Police includes support for two new cadet classes, transitioning to a new human resource management system, and expenses related to in-car and body-worn cameras
- Illinois Emergency Management Agency and Office of Homeland Security aid increases funding for Homeland Security
- Preparedness and Response grant program as well as support for organizations to prepare and respond to acts of terrorism
- Department of Juvenile Justice includes funding to help a new youth center become operational
Environmental, Natural, and Cultural Resources
- Department of Natural Resources continues funding for preservation of historic sites, supports the continued operation of key capital programs, and continues funding for the Youth and Young Conservation Education program
- Environmental Protection Agency provides funding for electric vehicle rebates for eligible participants, expands the House
- Hazardous Waste Collection Program, and continues funding for IIJA water infrastructure programs
Economic Development and Infrastructure
- Continues funding for core initiatives, provides support for weatherization programs, includes new funding to address food insecurity, and helps companies realize their export potential
- Dedicates state capital funds to make more sites ready for business
Government Efficiency
- Includes a series of initiatives to make government more efficient as well as reviews existing boards and commissions