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August 17, 2026
Report Includes:
Legislative Updates
Statehouse & Political News
Important Dates
JCAR
COGFA & Special Reports
Grant Opportunities
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As we head into a busy State Fair week here in Illinois, several policy issues are gaining momentum across the state, in Wisconsin, and on the federal level in Washington.
In Illinois, data center development has emerged as a major 2026 gubernatorial issue, with growing debate over electricity rates, water use, environmental impacts, economic development, and local control. Governor JB Pritzker has paused state data center incentives and called for “responsible growth,” while Chicago Mayor Brandon Johnson is pushing for stronger regulations and consideration of a temporary moratorium on new facilities.
The issue is expected to return to the General Assembly during the November veto session.
In Wisconsin, and at the federal level data centers and energy infrastructure are also becoming increasingly important policy issues.
Notably, Illinois recently enacted a new auto insurance appraisal requirement, which will take effect July 1, 2027.
As always, if you would like additional information on any of the topics covered in this 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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August 13-23: The Illinois State Fair is underway in Springfield from August 13–20. If you or your team will be attending and would like a member of the MBS lobbying team to accompany you to an event, reception, or outing, please reach out to an MBS team member. We would be happy to coordinate schedules and join you when possible.
August 19: Governor's Day at the Illinois State Fair (Springfield)
August 20: Republican Day at the Illinois State Fair (Springfield)
August 26: SAVE THE DATE | MBS Hosts Speaker of the House Emanuel "Chris" Welch Fundraiser (Chicago)
For additional information regarding any of the events listed above, or to request a comprehensive list of summer legislative fundraisers and political events, please contact a member of the Michael Best Strategies team.
A full calendar of events can be accessed below.
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Nursing and public-sector groups sue over federal student-loan changes
A coalition including National Nurses United, AFSCME, the American Federation of Teachers and the AFL-CIO filed a lawsuit challenging new federal student-loan rules, including borrowing limits and the administration's professional-degree framework. The dispute is particularly relevant to graduate healthcare education because federal policy affects the financing available to students pursuing advanced degrees. The Department of Education's interim framework currently treats MSN, DNP and nurse-anesthesia degrees as professional degrees for purposes of the higher loan limits while litigation proceeds.
Read more.
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Existing Illinois data-center legislation remains a framework for the veto-session debate
SB4016 proposes comprehensive requirements covering environmental impacts, water use, energy consumption, community benefits, public reporting and renewable-energy procurement for hyperscale data centers. Although the legislation did not advance during the regular spring session, its provisions illustrate the regulatory framework likely to inform future negotiations.
Read more.
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Farm Bill negotiations remain stalled
The Senate Agriculture, Nutrition and Forestry Committee failed to advance Chairman John Boozman's “Farm Bill 2.0” proposal. The current Farm Bill extension runs through September 30, leaving significant uncertainty around the future of commodity programs, conservation, crop insurance and other agricultural programs.
Read more.
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Governor's Appointments
Monica Argumedo, Sean McCoy Britton, and Cynthia Bryant will serve as Members of the Illinois State Police Merit Board.
Read more.
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Important Dates
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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JCAR
Next JCAR Meeting: Wednesday, August 19, 10:30 A.M. in Springfield.
Meeting will be live streamed on the JCAR website.
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CO₂ Pipeline Regulations (ICC): ICC proposed a new regulatory framework for carbon dioxide pipelines, including expanded permitting, reporting, and safety requirements. Developers would be required to hold public meetings, notify affected landowners, maintain project websites, submit emergency response plans, and pay annual oversight and preparedness fees.
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Cannabis Cultivation: Illinois agriculture regulators proposed allowing licensed cultivation centers and craft growers to grow cannabis outdoors. Outdoor grow sites would have to meet strict fencing, security, access-control, and visibility requirements.
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DNR Parking Fees: DNR proposed authority to charge up to $5 per vehicle at state parks, historic sites, and other DNR-managed properties where posted. The Old State Capitol underground garage would transition to a $65-per-month permit system.
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Secure Choice Retirement Program: Employers would be required to automatically enroll eligible employees in Secure Choice within 120 days of hire. Penalties for failing to remit employee contributions would match existing enrollment violations.
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State Records Retention: State agencies would be permitted to use a single disposal certificate for certain short-retention paper and electronic records.
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Commercial Driver Licensing: SOS proposed clarifying that CDL medical examiners must be Illinois-licensed physicians, APRNs, or physician assistants.
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State Employee Retirement System: Proposed changes implement a two-year extension of Illinois pension buyout programs and update related benefit provisions.
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Remote Retailer Amnesty: Illinois launched a tax amnesty program (Aug. 1-Oct. 31, 2026) allowing eligible remote retailers to resolve past sales tax liabilities without penalties or interest.
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DoIT Technology Fund: DoIT adopted rules governing administration of the Technology Revolving Fund, including agency billing and payment procedures
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CO₂ Pipeline Regulations (ICC): ICC proposed a comprehensive overhaul of CO₂ pipeline regulations, including expanded public engagement, permitting, safety, reporting, and emergency planning requirements. Pipeline operators would be subject to new annual preparedness and regulatory fees, with enhanced obligations for landowner notice and emergency response coordination.
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Cannabis Cultivation: The Department of Agriculture proposed allowing licensed cultivation centers and craft growers to cultivate cannabis outdoors. Outdoor cultivation sites would be required to meet detailed security, fencing, screening, and access-control standards.
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State Park Parking Fees: DNR proposed a new $5 daily parking fee at designated state parks, wildlife areas, natural areas, historic sites, and other DNR properties. The Old State Capitol garage in Springfield would move to a $65 monthly parking permit system.
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Secure Choice Retirement Program: Employers would be required to automatically enroll eligible employees in Secure Choice within 120 days of hire. Penalties would apply not only for failing to enroll eligible employees but also for failing to remit employee contributions.
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State Records Retention: State agencies would be allowed to use a single disposal certificate for certain short-retention paper and electronic records, reducing administrative burden.
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Commercial Driver Training Schools: Secretary of State proposed updates clarifying instructor licensing qualifications and medical examiner requirements for commercial driver training programs.
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State Employee Retirement System: Proposed amendments implement legislation extending Illinois pension buyout programs for two additional years. The changes also update service credit purchase requirements and accelerated pension benefit provisions.
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Remote Retailer Amnesty Program: Illinois adopted rules creating a Remote Retailer Amnesty Program running Aug. 1 through Oct. 31, 2026. Eligible remote sellers can resolve certain unpaid Illinois sales tax liabilities using simplified tax rates without penalties or interest.
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DoIT Technology Revolving Fund: DoIT adopted rules formalizing administration of the state's technology revolving fund, including advance billing, credits, and payment procedures for state agencies.
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COGFA & Special Reports
Commission on Government Forecasting and Accountability’s July 2026 Monthly Briefing can be found here.
COGFA’s July 2026 Monthly Briefing Highlights:
- FY 2027 revenues opened strong, with General Funds receipts increasing $188 million (5.0%) over July 2025.
- Sales Tax receipts led revenue growth, rising $132 million (12.9%), with net receipts increasing $130 million (13.8%).
- Corporate Income Tax collections surged 65.2% year-over-year, generating an additional $131 million in receipts.
- Personal Income Tax revenues remained flat in July, though combined June and July collections grew approximately 4%, consistent with FY 2026 trends.
- Federal Source revenues increased 18%, totaling $360 million and exceeding last July's receipts by $55 million.
- Interest earnings on State funds declined $79 million, largely due to the absence of corporate bond proceeds received during the prior fiscal year.
- All Other State Sources fell $104 million (25.6%), driven primarily by declines in investment earnings and Estate Tax receipts.
- Transfers In remained stable overall, with growth from sports wagering, lottery, gaming, and cannabis revenues offsetting declines in other transfers.
- New sales tax distribution changes took effect July 1, redirecting motor fuel sales tax revenues while providing a temporary FY 2027 deposit to the General Revenue Fund.
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Grant Opportunities
There are currently 124 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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