SPRINGFIELD, Ill. (WAND) — Gov. JB Pritzker signed an executive order Tuesday calling on state agencies to review their budgets and prepare for an economic downturn due to President Donald Trump's policies. Every department has been directed to reserve up to 4% of its current budget to mitigate the impact of Trump's budget bill.
Pritzker told reporters in June that he was worried about the fiscal outlook for every state as Congress prepared to vote on the "big beautiful bill."
"Even in the best of times, delivering balanced budgets requires discipline," Pritzker said. "You're seeing red states and blue states across the country struggle this year, forced to grapple with the lagging national economic growth estimates due to high tariffs and bad policy choices in Washington."
Now, the Democrat is demanding that his agencies conduct immediate budget reviews to identify efficiencies and reductions to help combat potential economic disasters coming from the White House.
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. Although Illinois GOP leaders argue that 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.
But that bridge fund is clearly not enough, as Pritzker said agencies should propose program changes or funding transfers if budget shortfalls emerge.
"Illinois has built a strong economy and proven its fiscal responsibility, but Trump's disastrous policies threaten to undo that progress," Pritzker said. "I'm taking executive action to mitigate the impact of Trump's economic policies on our state finances, maintain critical services and preserve our economic stability."
Departments must submit reports on their progress to the governor's office within 30 days. Pension payments and K-12 education funding will not be impacted by this executive order.
Curran said Pritzker should show he is serious by making the difficult and unpopular decisions needed to cut spending, reduce taxes and improve economic opportunity for Illinoisans.
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