Illinois Lawmakers Pass $55.9 Billion Budget With New Taxes on Social Media, Crypto and Fantasy Sports
Updated
Updated · WLS-TV · Jun 1
Illinois Lawmakers Pass $55.9 Billion Budget With New Taxes on Social Media, Crypto and Fantasy Sports
10 articles · Updated · WLS-TV · Jun 1
$55.9 billion in spending cleared the Illinois Senate 37-21 after 3 a.m. and the House 76-39 about an hour later, with no Republican votes and fiscal 2027 spending essentially flat after an $830 million current-year add-on.
$500 million of the new revenue comes from capping corporate net operating loss deductions and taxing social media platforms by Illinois user counts, while digital asset and fantasy sports taxes are expected to raise another $65 million.
The package delays a 1.3-cent gas tax increase until January, creates an Aug. 7-16 school-supplies sales tax holiday and sets up a one-year FRESH program with $400 payments for residents losing SNAP benefits.
Republicans attacked the overnight process and fund shifts, including a plan to move $150 million in motor-fuel sales tax revenue to the general fund once transit is fully funded, while Democrats said the budget prepares for federal cuts and avoids taxing working families.
The plan fully funds pensions and K-12 evidence-based education, gives higher education just a 1% increase, provides lawmakers a roughly 3% raise to $101,450, and adds no money to the state's rainy-day fund.
With new tech taxes facing immediate legal threats, what is Illinois' fiscal Plan B?
As Illinois' pension debt nears $150 billion, is this record budget delaying an inevitable collapse?
Illinois is diverting $150 million from its Road Fund. Which infrastructure projects will be canceled?
Illinois’ $55.9 Billion Budget for 2027: Political Battles, Revenue Shifts, and Long-Term Sustainability Concerns
Overview
Illinois has approved a $55.9 billion budget for Fiscal Year 2027 after intense, late-night negotiations marked by partisan debate. Lawmakers fought to include their priorities as the state continues to face structural imbalances and struggles to align revenues with long-term spending needs. Governor JB Pritzker’s proposal included only a modest increase in spending, reflecting efforts to restrain growth amid fiscal challenges. The budget’s passage highlights ongoing divisions and the difficulty of balancing immediate funding demands with the need for sustainable, long-term financial solutions.