Illinois Gov. J.B. Pritzker signed the state’s $53.1 billion Fiscal Year 2025 budget on Wednesday, putting into law several key changes and making several changes to the state’s tax code.
The bill, which passed along party lines in the final moments of the legislature’s spring session, was hotly debated even among Democrats, but ultimately passed as Pritzker praised it as being another balanced budget for a state long known for its willingness to run deficits.
Grocery Tax Eliminated
Among the three key components of the bill was to eliminate the state’s 1% tax on groceries, which is paid out to municipalities. The tax is levied on all items “meant to be consumed off the premises where they are sold,” and according to text of the bill will be eliminated on Jan. 1, 2026.
“If it reduces inflation for families from 4% to 3%, even if it only puts a few hundred bucks back in families’ pockets, it’s the right thing to do,” he said.
Some lawmakers were critical of the decision, saying it would take revenue away from communities across the state.
Orland Park Mayor Keith Pekau argued that the cut would take $2.5 million in revenue from the community, though as a home-rule authority Orland Park can institute its own grocery tax of up to 1%, according to state law.
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Child Tax Credit Implemented
The bill will also provide a Child Tax Credit in the state, financed by increased taxes on sports wagering and video gambling according to lawmakers.
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“This plan invests millions more in our schools, reinforces after-school and summer youth programs and creates a new child tax credit that will provide assistance to families with young kids," State Rep. Jehan Gordon-Booth, D-Peoria, lead budget negotiator for the House Democratic Caucus, said in a statement.
According to the text of the budget, households would be eligible for a $300-to-$600 tax credit per child under the age of 12, and those with an annual income below $50,000 or couples with an income below $75,000 would qualify.
More information the program can be found on the NBC Chicago app.
Additional Funding for Chicago Migrant Crisis
The budget also included more than $180 million in additional funding to address issues related to the busing of asylum seekers tom border states to the Chicago area, with nearly 43,000 asylum seekers arriving in Illinois since that program began, according to officials.
According to the governor, the funds will be used primarily to move asylum seekers into permanent residences rather than temporary shelters, and to transition buildings currently being used for the purpose back into publicly accessible facilities.
“We didn’t ask for this manufactured crisis, but we must deal with it all the same,” he said. “We don’t have any clear idea how long Governor Abbott intends to hold the nation hostage, but his political stunt will eventually come to an end.”
