The budget includes massive investments for education and human services despite significant cuts in federal funding due to the Big Beautiful Bill.

SPRINGFIELD, Ill. (WAND) — Gov. JB Pritzker proposed a $56 billion spending plan for Fiscal Year 2027 during his State of the State and budget address Wednesday. The budget includes massive investments for education and human services despite significant cuts in federal funding due to the Big Beautiful Bill.

The governor's eighth budget proposal is a $878 million increase in spending over the current budget. This comes as Pritzker's Office of Management and Budget expects Illinois to lose $1.7 billion in federal funding during the next fiscal year, including roughly $400 million from recent federal tax law changes.

"We've been building a fiscal foundation to ensure that come hell or high water, including the turbulence of Donald Trump, we can manage through the hard times and nevertheless make progress for a brighter future," Pritzker said.

Senior budget officials explained over $1 billion in FY27 grant cuts are currently under litigation and the governor's appropriations structure assumes these funds will continue to flow while court action is ongoing.

28% of the spending plan would go to education, including $9.2 billion for the K-12 evidence-based funding model. That investment would be a $2.4 billion increase to the annual funding level for schools. 

"The nation's report card compares all 50 states, and the results are clear — Illinois among the best in the nation," Pritzker said. "Only one state outpaced Illinois in eighth grade reading scores, and only four states outpaced Illinois in eighth grade math scores. We're leading the pack because of sustained investments in education." 

Pritzker is calling for a $51 million increase in grants for school categorical grants for a total of $1.2 billion. Top Pritzker budget officials said the budget could increase special education transportation reimbursements by $20 million, special education tuition by $20 and vocational transportation expenses by $10 million. It also includes $35 million for the Illinois Department of Transportation to address mass transit costs for student transportation.

Pritzker's proposal maintains the state's career and technical education programs to expand opportunities for underserved students. $1.5 million was included to help implement comprehensive literacy and numeracy plans. The plan also provides $15 million for the fourth year of the teacher vacancy grant pilot program and $1.5 million for computer science equity grants.

Fiscal Year 2027 will be the first year for operational and programmatic funding for the Illinois Department of Early Childhood, with Pritzker proposing a $2 billion budget. Roughly $750 million could maintain the state's investment for early childhood block grants to help even more young children get into preschool. $200 million has been earmarked for early childhood workforce wages and $2.3 million will continue expansion of Dolly Parton's Imagination Library program across the state.

The spending plan includes $100 million for a new grant program to connect housing developers to funding needs to build affordable housing. Pritzker also hopes lawmakers will approve $100 million for missing middle and other affordable housing programs within the Illinois Housing Development Authority. $50 million has been proposed for housing down payment assistance programs as well.

"Affordability starts with controlling spending, and that comes with better policy," said House GOP Leader Tony McCombie (R-Savanna). "You don't lower costs by growing government. We do it by growing the state." 

Pritzker is calling for a $254 million investment in the Home Illinois program, including $81.5 million for shelters and other services for unhoused people. Over $62 million could improve supportive housing, homelessness prevention services, shelter diversions and access to legal services.

Illinois could also see $111 million used for services to help reduce gun violence through violence prevention, high-risk youth prevention and youth development programs.

The Democrat has earmarked $50 million to hire 450 new staff and update eligibility determination systems for the Supplemental Nutrition Assistance Program and Medicaid to comply with federal changes for eligibility and work requirements. 

Pritzker's budget includes $30.6 billion to address medical assistance for 3.1 million Illinoisans on Medicaid. The governor also plans to use $143 million to provide free health benefits to immigrant seniors, with $110 million appropriated from the general revenue fund. 

The Pritzker administration suggested Illinois should institute a two-year pause on authorization of new data center tax credits to protect consumers from skyrocketing utility bills. Sen. Doris Turner (D-Springfield) said that would be critical since data centers are a hot-button issue for her district.

"This is the time where we have to put pen to paper and work out all the intricate details," Turner said. "So, I'm going to be watching very closely to see what those details look like." 

Pritzker would also like to see $22 million approved to support and promote full-spectrum reproductive healthcare through community-based providers. $14 million has been earmarked for the Illinois Department of Public Health to hire 61 new employees for licensing, inspecting and certifying healthcare facility compliance with state and federal regulations.

Roughly 5% of the spending plan would go towards public safety, with $2.3 billion appropriated for the Illinois Department of Corrections. The governor hopes lawmakers approve a $100 million increase for personal services at all 28 correctional facilities and to hire additional administrative staff, along with 100 new correctional officers to relieve overtime issues. $36 million could help implement an electronic health record system and $20 million has been set aside for annual repair and maintenance expenses. 

Approximately $478 million has been earmarked for the Illinois State Police, including $2 million to support two new cadet classes to hire and train 100 additional sworn troopers. $9.7 million would go towards contractual service expenses for STARCOM infrastructure and equipment, while $5.6 million has been set aside for early implementation of the Clean Slate Act. 

"Our residents must budget down to the last penny to keep up with the tax burden here in Illinois while their government continues to add billions to the state budget and then raise those taxes on those same cash-strapped citizens paying for it," said Rep. Regan Deering (R-Decatur). "Illinois doesn't need a bigger government. It needs a better one focused on promoting growth and stability, not making Illinoisans reliant on their own government." 

Pritzker's FY27 budget proposal includes $10.7 billion to meet the state's pension obligations, with the state on track to reach 90% funded by 2045. He is also proposing several revenue adjustments to generate new money for the state.

The Democrat would like to institute a $200 million social media platform fee with funds dedicated to education. Pritzker is also calling on lawmakers to realign tax treatment for table and electronic games at casinos to generate $120 million. The governor's budget makes no changes to the sports betting tax created last year. 

"We're going to spend a considerable amount of time this session talking about what the revenue situation is and how the realities from Washington have impacted that." 

Many Republicans said Democrats need to cut down on spending and lower taxes. Freedom Caucus members said wages for working people have decreased by 21% while state spending has increased each year.

"We are now the number one state for the highest property taxes in the country during the tenure of Gov. JB Pritzker," said Rep. Adam Niemerg (R-Dieterich). "Our gas tax is the third highest in the country. It has more than doubled under JB Pritzker's administration." 

The Illinois House and Senate will hold hearings for state agencies to present their budget ideas over the coming months. Lawmakers need to pass the budget out of both chambers before session ends on May 31. 

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