Illinois Faces Funding Uncertainty as Pritzker Presents 8th Budget

Governor confronts limited revenue growth and federal policy changes that will impact state finances

Published on Feb. 17, 2026

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Gov. JB Pritzker will present his eighth budget on Wednesday as Illinois faces significant uncertainty over future federal funding. Several policies from the federal government, including cuts to social services and changes to the tax code, are expected to diminish the state's revenue and increase costs. Lawmakers will have to balance their desires to fund programs while revenues are projected to flatten.

Why it matters

The ever-changing federal funding landscape presents a challenge for Illinois lawmakers as they work to pass a balanced budget. The state constitution requires a balanced budget, but with federal funding cuts and economic uncertainty, it will be difficult for the state to fulfill all funding requests. This budget process will set the tone for how Illinois navigates these financial challenges.

The details

Pritzker's budget office estimates Illinois will face a $2.2 billion deficit in fiscal year 2027 due to the state's own spending exceeding projected revenue. Federal policy changes, including cuts to Medicaid funding and new limits on provider taxes, are expected to further exacerbate the state's budget challenges in the coming years. The overall health of the Illinois economy is also a concern, with forecasts predicting slow growth and the impact of tariffs on manufacturing and agriculture.

  • Pritzker will present his eighth budget on Wednesday, February 16, 2026.
  • The fiscal year 2027 budget, which begins on July 1, 2026, is expected to face a $2.2 billion deficit.

The players

Gov. JB Pritzker

The governor of Illinois who will present his eighth budget on Wednesday.

Rep. Kam Buckner

A top House Democratic budget negotiator from Chicago who says the goal of this year's budget will be to play 'defense' against the uncertainty of federal funding.

Rep. Amy Elik

The Republican representative from Godfrey who leads budgeting for House Republicans and is concerned Democrats will raise taxes to fill budget gaps.

Sen. Karina Villa

A Democratic senator from West Chicago who says new taxes on the wealthy and corporations are necessary to avoid cutting services.

President Donald Trump

The former president whose policies, including tariffs and cuts to social services, have had a significant impact on Illinois' finances.

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What they’re saying

“It's hard when the biggest variable in the budget is not something that you can control. And with this president, the volatility isn't a possibility; it's a given.”

— Rep. Kam Buckner, Top House Democratic budget negotiator (Capitol News Illinois)

“If we don't fight back with taxing the ultra-wealthy, we're going to continue to chop services in order to balance budgets.”

— Sen. Karina Villa, Democratic senator (Capitol News Illinois)

“They're not even ashamed or embarrassed anymore to say we need to raise taxes. And so when they've got so many people on board with that theory and concept, I'm very, very concerned.”

— Rep. Amy Elik, Republican representative (Capitol News Illinois)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This budget process will be crucial for Illinois as it navigates the uncertainty of federal funding and an economic landscape shaped by policies from the Trump administration. Lawmakers will have to find a balance between funding programs and managing the state's finances, with difficult decisions likely ahead.