Health and Human Services Coalition Statement

on the Passage of the FY27 State Budget and

the Community Partner Fair Contracting Act

June 3, 2026


For Immediate Release

Contact: Lauren Wright, lauren@illinoispartners.org


CHICAGO, IL -- The Health and Human Services Coalition of Illinois is grateful to the Illinois General Assembly for passing the FY27 State Budget and advancing key investments and reforms that support communities across the state. We particularly appreciate the legislature’s adoption of progressive revenue solutions, including the Digital Ad Tax, to help stabilize our state budget in the future at a time of continued federal uncertainty and growing community need.


While we were grateful to see investments in some health and human service programs, including the FRESH program, CCAP, and others, this budget did not meet the moment. We remain concerned that many community-based providers continue to operate with flat funding and under significant financial strain, when in FY27 the pace and impact of H.R.1 cuts will dramatically increase. We were especially disappointed to see dramatic cuts to the Human Service Professional Loan Repayment Program, while the human service workforce crisis continues to impact organizations and communities across Illinois, and the federal government is rolling back loan forgiveness and repayment programs elsewhere.


At the same time, after more than three years of collaboration and negotiation, we are proud to celebrate a major victory for the health and human service sector with the passage of the Community Partner Fair Contracting Act through both chambers of the General Assembly as HB4340 Senate Amendment 5. This legislation includes provisions impacting GATA, the Prompt Payment Act, and Court of Claims Actand negotiation, and now heads to the Governor’s desk to be signed into law.


The Community Partner Fair Contracting Act takes important steps toward improving the state’s contracting systems by increasing transparency, strengthening accountability in contract processing and payment timelines, reducing administrative burden, and helping community-based organizations deliver essential services more sustainably. These reforms recognize that nonprofits and community providers are critical partners in the provision of care and services across Illinois, and that delayed contracts and payments have real impacts on organizations, workers, and the communities they serve.


We are deeply grateful to the Governor’s Office of Management and Budget for their partnership throughout this process, as well as the leadership of Forefront, the Illinois Collaboration on Youth (ICOY), and Illinois Partners for Human Service in advancing this legislation. We also thank the many advocates, providers, and coalition partners across the state who helped shape and support these reforms over the last several years.


As Illinois continues to navigate fiscal uncertainty and growing community need, the Health and Human Services Coalition of Illinois remains committed to working with the Governor’s Office and the General Assembly to strengthen the health and human service sector through sustainable workforce investments, fair contracting practices, and long-term revenue solutions. Health and Human Service organizations remain essential infrastructure in communities across the state, and continued investment in their stability and capacity is critical to the well-being of all Illinoisans.

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About the Health and Human Services Coalition of Illinois

The Health and Human Services Coalition of Illinois, led by Illinois Partners for Human Service, represents more than 20 coalitions and associations, collectively representing thousands of community-based organizations in every legislative district across the state. For more information about the HHS coalition, email lauren@illinoispartners.org.


Illinois Partners for Human Service | https://illinoispartners.org/