Pritzker administration lowers Fiscal Year 2026 revenue projection by $536 million, citing unpredictable Trump economy

SPRINGFIELD, Ill. (WAND) — The Pritzker administration has lowered state revenue projections for Fiscal Year 2026 by $536 million compared to the governor's budget proposal in February.

The Governor's Office of Management and Budget told the House Revenue Committee Thursday that the downward revenue picture is due to President Donald Trump's impact on the United States economy.

The 1% drop in revenue would leave Illinois with nearly $55 billion in revenue by the end of Fiscal Year 2026. This change comes with just over two weeks left before Democrats are expected to pass their spending plan.

"Recent reports have been pointing to slower GDP growth and even the potential for a recession," said GOMB Director Alexis Sturm. "So, like we do every year, we'll overcome those challenges and pass a balanced budget but we do recognize that there is a lot of uncertainty and headwinds at the state level."

Meanwhile, the Illinois Commission on Government Forecasting and Accountability said Illinois could expect to end the current fiscal year with roughly $54 billion in revenue. COGFA leaders said the revenue growth comes from strong income tax receipts during April.

Revenue for April 2025 was $593 million higher than April of 2024, as economists said consumers were quick to buy products before tariffs take effect.

House Republicans said Illinois is only facing budget problems because of overspending by their Democratic colleagues.

"If the budget is not reconciling, there's two levers," said Rep. Travis Weaver (R-Pekin). "There's the income and there's the outflows. If it's not reconciling after we've had a robust year, let's look at the outflows."

Of course, lawmakers on both sides of the aisle will be watching to see if Congress approves significant cuts to federal funding for Illinois. Pritzker has frequently stressed that Illinois will not be able to make up money for massive cuts to Medicaid or other services.

"He has warned of the devastating impact on working families if Trump and Congressional Republicans succeed in their cruel cuts to Medicaid, SNAP, and other critical safety net programs," stated Deputy Governor Andy Manar.

The Illinois General Assembly is scheduled to adjourn on May 31. Although, lawmakers could for a special session to address budget concerns before the next fiscal year starts July 1.