Illinois lawmakers could pass plan to address $267 million budget deficit during veto session

SPRINGFIELD, Ill. (WAND) — Illinois is facing a $267 million deficit for the budget approved in May.

The governor's office of management and budget said the state has seen a drastic drop in corporate income tax receipts since the new fiscal year started. Gov. JB Pritzker's office said the Big Beautiful Bill is costing Illinois $587 million in corporate tax receipts and roughly $250 million in individual income tax receipts.

House Speaker Emanuel "Chris" Welch told WAND News his caucus is discussing ways to address the deficit during veto session.

"We're probably going to offer a decoupling bill that would decouple from some of the federal laws and we believe that can be helpful in mitigating some of the problems that HR 1 created," Welch said. "HR 1 is a bill that doesn't help states like Illinois, and it really hurt."

The governor has already directed state agencies to review their budgets and reserve up to 4% of funds to lessen the impact of President Donald Trump's budget bill.

Pritzker said Trump and congressional Republicans sealed one of the largest wealth transfers in American history, stripping healthcare, food assistance, and other essential supports for working families to fund permanent tax breaks for the wealthy. Yet, Illinois GOP leaders argue the governor should constrain spending and reduce taxes regardless of who is president.

"This executive order is really the governor reflecting upon his own out-of-control spending year over year at a pace that is not sustainable," said Senate Republican Leader John Curran (R-Downers Grove).

The Fiscal Year 2026 budget includes a $100 million bridge reserve fund to help cover short-term emergencies and revenue shortfalls. Democrats stressed that the fund would be critical to respond to cuts to healthcare and infrastructure included in Trump's budget. Although, that bridge fund is clearly not enough as the governor said agencies should propose program changes or funding transfers if budget shortfalls emerge.

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