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September 8, 2026
Report Includes:
Legislative Updates
Statehouse & Political News
Important Dates
JCAR
COGFA & Special Reports
Grant Opportunities
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Illinois Insights
The past week, state actions focused on gaming regulation, workforce development, agricultural recovery, agency leadership, and preparations for September's meeting of the Joint Committee on Administrative Rules.
The Illinois Gaming Board advanced proposed changes intended to modernize the state’s voluntary self-exclusion program, including shorter enrollment periods and additional methods for entering the program. Separately, the Pritzker administration announced $11.4 million in Job Training and Economic Development awards to 23 organizations serving workers who face employment barriers.
Data center policy is becoming an increasingly important issue for Springfield. The Governor has indicated support for additional legislative action to ensure data centers pay their fair share of power costs, address water consumption and provide greater transparency. The issue is likely to remain active as policymakers consider the balance between economic-development incentives and concerns regarding energy affordability, grid reliability and natural resources.
In addition, federal agricultural relief became available to producers in six counties affected by the March storms. The MBS Illinois team will continue monitoring developments and opportunities for clients to provide input or prepare for new requirements.
If you would like additional information on any of the topics covered in this week's newsletter, please reach out to your Michael Best Strategies team member.
Have a great week,
MBS Illinois
Government Relations Team
Our Team | michaelbeststrategies.com
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Wednesday October 28: 2026 Politics Unpacked with Reince Priebus and Steve Israel hosted by Michael best (Chicago)
Wednesday December 9: SAVE THE DATE! Join Michael Best Strategies for a festive holiday celebration hosted by Keith Wheeler, Rob Dixon, and Aaron Harris. More details TBA. (Chicago)
Thursday December 10: Illinois Third House (Chicago)
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No significant legislative activity has occurred, as the General Assembly remains out of regular session and no major bill actions, hearings, or committee proceedings were identified.
We will continue monitoring developments that may shape the policy landscape ahead of the fall veto session, including ongoing discussions related to energy, data centers, education funding, housing, pension policy, and other unresolved priorities.
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Statehouse & Political News | |
Gov. Pritzker Announces $11.4 Million to Expand Workforce Training and Career Opportunities Across Illinois
The administration announced $11.4 million in JTED awards to 23 organizations. The program’s priority populations include immigrants and refugees, justice-involved individuals, rural residents, and youth with employment barriers. Its youth category serves eligible participants ages 16–24 through academic, technical, employability, and supportive services.
Read more.
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Gov. Pritzker Announces Additional Relief for Illinois Farmers Impacted by March 2026 Storms
Additional federal loan assistance became available for agricultural producers affected by the March storms in six Illinois counties.
Read more.
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Illinois hospitals to lose billions through Medicaid policy change
Illinois hospitals stand to lose upwards of $4 billion in revenue over the next several years due to impending changes in Medicaid rules that limit states’ ability to direct higher reimbursement payments to facilities that serve the most vulnerable populations.
That’s according to a recent study by KFF, a nonpartisan health policy think tank, as well as estimates by the Illinois Health and Hospital Association.
Read more.
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Governor's Appointments
Lydia Colunga-Merchant will serve as Assistant Director of the Illinois Department of Labor.
Brett Finley will serve as a member of the Lottery Control Board.
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The Fall Veto Session is scheduled for the weeks of November 17-19 and December 1-3.
Click the links below for the House and Senate schedules.
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Upcoming Government Meetings
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September 10 — Illinois Commerce Commission: Annual Utility Supplier Diversity Policy Session at 1:30 p.m. in Chicago. The discussion is particularly relevant to utilities, suppliers and businesses participating in utility procurement. ICC Supplier Diversity Policy Session
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September 15 — Illinois Health Facilities and Services Review Board: State Board Meeting from 9 a.m.–5 p.m. Healthcare organizations and stakeholders pursuing facility projects should monitor the agenda. HFSRB September 15 Meeting
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September 15 — JCAR: Joint Committee on Administrative Rules meeting at 11 a.m. in the Bilandic Building in Chicago. JCAR will consider rulemakings that could affect healthcare, public health, elections and other regulated sectors. JCAR Meeting Information
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September 15 — Illinois Workers' Compensation Commission: Medical Fee Advisory Board meeting at 2 p.m. Healthcare providers, employers and workers' compensation stakeholders should monitor potential recommendations affecting medical fee schedules. IWCC Medical Fee Advisory Board
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September 15 — Illinois Nature Preserves Commission: 254th meeting at 10 a.m. in Effingham. The meeting may be relevant to development, environmental permitting and land-use stakeholders. Illinois Nature Preserves Commission
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September 16 — DCEO: Grant Reporting & Supporting Documentation Training. The training is relevant to organizations currently administering Illinois grants or preparing to pursue state funding. DCEO Grant Training Opportunities
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September 16 — Illinois Commerce Commission: Underground Utility Damage Prevention Advisory Committee activity. Utility, construction and infrastructure stakeholders should monitor developments involving excavation and underground utility infrastructure. ICC Meetings and Events
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September 18 — Governor's Advisory Council: Commission meeting from 10 a.m.–noon. Stakeholders should monitor the agenda for policy recommendations and advisory activity. Governor's Advisory Council
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September 21 — IDOT: Transit 5310 Enhanced Mobility Grant deadline. The program supports transportation services for seniors and individuals with disabilities. Illinois Grant Opportunity Database
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Next JCAR Meeting: Wednesday, September 15, 11:00 A.M. in Springfield.
Meeting will be live streamed on the JCAR website.
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Several newly proposed and adopted rulemakings may affect healthcare and assisted living providers, agriculture and animal health stakeholders, public employers, alcohol-serving businesses, transportation and hospitality operators, and taxpayers participating in new Illinois economic development programs.
Key Takeaways
- Illinois is expanding animal health regulations by updating rabies and animal control requirements, extending several requirements to cats, modernizing quarantine procedures, and requiring electronic livestock health certificates beginning in 2027.
- Assisted living providers face new requirements, including Legionella testing policies, electronic monitoring compliance in Alzheimer's units, construction plan review requirements, and eligibility for new two-year license renewals based on compliance history.
- Alcohol-serving businesses will see major BASSET training updates, including broader server coverage, mandatory training within 120 days of employment, and new curriculum requirements addressing opioids, naloxone administration, and human trafficking awareness.
- Illinois adopted new tax and economic development rules, including a recorded music production tax credit program, quantum computing-related tax exemptions, updated vehicle and sales tax provisions, and revised short-term rental hotel tax treatment.
- Public employers will be required to maintain reasonable injury-reporting procedures and explicitly inform employees of protections against retaliation for reporting workplace injuries or illnesses.
- The State Fire Marshal proposed revised inspection and safety requirements for permanently moored craft, including a new staggered inspection cycle for floating hotels, casinos, restaurants, and similar facilities.
Second Notices
Rulemakings involving Healthcare and Family Services medical payments, DNR deer removal permits, and Secretary of State licensing procedures advanced to Second Notice review before JCAR.
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COGFA & Special Reports | |
NEW! COGFA’s August 2026 Monthly Briefing Highlights
NEW! Commission on Government Forecasting and Accountability’s August 2026 Monthly Briefing can be found here.
Key Takeaways
- Illinois is experiencing better job growth and more moderate inflation than many national indicators suggest, though unemployment remains elevated.
- The State received significant credit rating upgrades from both Moody's and S&P due to continued fiscal improvements.
- General Funds revenues are off to a strong start in FY 2027, driven by income tax, sales tax, and federal revenue growth.
- Long-term concerns remain around pension liabilities, federal cost shifts, economic growth, and future budget pressures.
COGFA's August 2026 Monthly Briefing Highlights
Economic Outlook: "Economic Déjà Vu"
- National economic conditions are showing signs similar to those seen in 2025, with slowing job growth and renewed inflationary pressures.
- U.S. nonfarm payroll employment declined by 23,000 jobs in July, while prior months were revised downward, indicating a weaker labor market than previously reported.
- Inflation has reaccelerated nationally, driven in part by higher energy costs linked to the war in Iran and disruptions in the Strait of Hormuz.
- The Federal Reserve has maintained higher interest rates amid inflation concerns, with some policymakers favoring rate increases.
Illinois Economy
- Illinois' economy has performed somewhat better than the national trend in recent months.
- Illinois added 11,700 jobs in July 2026, and payroll employment has increased in seven of the last eight months.
- Key sectors posting year-over-year gains:
- Education & Health Services: +13,000 jobs
- Construction: +12,700 jobs
- Government: +6,100 jobs
- Largest sector declines:
- Financial Activities:-14,500 jobs
- Trade, Transportation & Utilities:-4,500 jobs
- Professional & Business Services:-3,600 jobs
- Illinois' unemployment rate improved slightly to 4.9%, but remains above the national rate of 4.1% and Midwest average of 3.9%.
Inflation in Illinois
- Chicago-area inflation eased to 2.5% in July 2026, lower than the national inflation rate.
- Significant price increases remain in:
- Apparel: +12.4%
- Motor fuel: +16%+
- Shelter: +4.9%
- Food away from home: +4.6%
Credit Rating Upgrades for Illinois
- Moody's upgraded Illinois' issuer and General Obligation bond rating from A2 to A1 on August 26, 2026.
- S&P upgraded Illinois' General Obligation bond rating from A- to A on September 1, 2026.
- The upgrades reflect:
- Eight consecutive balanced budgets.
- Improved fiscal stability.
- Conservative budgeting practices.
- Growth in reserves and revenue.
- Concerns remain regarding:
- Illinois' unfunded pension liabilities.
- Slow population and economic growth.
- Potential future Medicaid and SNAP funding pressures from federal policy changes.
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Limited financial flexibility due to the state's flat income tax structure. [cgfa.ilga.gov]
- Despite the upgrades, Illinois remains the lowest-rated state by both Moody's and S&P.
State Revenue Performance
August 2026 Results
- Illinois General Funds revenues increased $326 million (9.2%) compared to August 2025.
- Major revenue gains included:
- Personal Income Tax: +$165 million
- Sales Tax: +$87 million
- Federal Sources: +$115 million
- Other State Sources: +$100 million
- Sales tax revenues continued their strong performance, rising 9.0% in August, following a 12.9% increase in July.
- Transfers into General Funds declined by $147 million due primarily to reduced transfers from the Income Tax Refund Fund.
FY 2027 Year-to-Date (Through August)
- General Funds revenues are up $515 million (7.0%) over the first two months of FY 2027 compared to the same period in FY 2026.
- Year-to-date increases include:
- Personal Income Tax: +$167 million (+5.0%)
- Corporate Income Tax: +$111 million (+50.9%)
- Sales Tax: +$216 million (+11.6%)
- Federal Sources: +$172 million (+25.4%)
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There are currently 123 active grant funding opportunities available through State agencies. For a full searchable list of agencies and opportunities, visit the Illinois Catalog of State Financial Assistance CSFA website.
If you have questions about any of these grants, please reach out to a Michael Best team member.
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If you would like any additional information about the above topic, or if you would like to find time to discuss the above matter in more detail, please do not hesitate to contact your Michael Best Strategies contact.
Have a great week,
Illinois GR team
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