SPRINGFIELD – Earlier today Gov. JB Pritzker delivered, what he called, his “8th consecutive balanced budget” proposal. Touting fiscal restraint as a priority in a year where slowing revenues and economic growth factors have been exasperated by federal disputes, Pritzker took a glass-half-full view of things.
Standing before the Illinois General Assembly, Pritzker framed the fiscal year 2026 budget as an opportunity to demonstrate financial discipline. His plan outlines limits to discretionary spending growth all the while protecting core government commitments like housing, education and healthcare.
“Prudence demanded that this year’s budget proposal seeks a discretionary spending increase that is less than one half of one percent,” Pritzker said. “This year will be no different, despite how challenging this eighth-year budget is.”
Education, Health Care and Early Childhood Literacy
Gov. Pritzker also focused on sustaining investments for K–12 education and associated health services, both being among the most significant components of the state budget. His budgetary proposal would [consequently] continue Illinois’ commitment to its’ evidence-based school funding formula, a multiyear effort that - state officials report - has contributed to rising graduation rates and improved student outcomes overall across the state.
“Only one state outpaced Illinois in eighth-grade reading scores, and only four states outpaced us in math scores,” the governor said, citing Illinois’ academic excellence relative to the broader Nation.
Gov. Pritzker further reported an expansion of the early childhood literacy program in partnership with the Dolly Parton Imagination Library, which now serves 97,000 children across 88 counties, sending free books monthly to children.
Pritzker said Illinois is ranked second in percentage of people with a bachelor’s degree while at the same time being one of the top ten most populated states in America.
“Our public university enrollment has reached a 10 year high,” said the Governor. “Today, the number of Illinois students attending our public universities tuition-free has reached an all-time high of 44%.”
But higher education advocates complain the budget has only a slight 1% increase in funding and no additional money for the Monetary Award Program, which provides financial aid to lower income students.
“Higher education in Illinois has already lost millions because of federal cuts under the Trump administration. And as the Governor said today, inflation continues to rise and the cost of everything is ‘too damned expensive’. He’s right, it is - including the price tag to receive a higher education in this state,” said University Professionals of Illinois (UPI, Local 4100) President and Illinois Federation of Teachers Membership Secretary John Miller.
“In light of all of this, the Governor’s proposal to increase higher education funding by just 1% is no increase at all – it’s a cut. It will force already strained colleges and universities to offset the losses with tuition hikes, program reductions, and staffing cuts while our students take on more debt.”
Housing and Workforce Investments
As part of Gov. Pritzker’s affordability agenda, he announced the BUILD Plan. The new plan is aimed at expanding much needed housing construction by removing regulatory barriers. The Governor cited a 2025 University of Illinois study – known as the Project for Middle Class Renewal – which showed the state will need 227,000 additional homes by 2030 to keep up with increasing demand.
Also proposed was a vocational training grant program designed to provide school districts and regional education centers with financial support to build and expand specialized workforce programs.
“We have over 200,000 job openings in Illinois…This legislative session, let’s explore every possible avenue to help businesses fulfill their workforce demands and give high school students a path forward to a good paying job” Pritzker said.
Energy and Electricity Credits
The governor acknowledged that electricity generation, distribution and consumption remain concerns calling electricity prices a “truly multi-faceted challenge.”
He announced a two-year pause on certain types of tax credits for data-centers and wants to help speed the development of new clean nuclear power. As data-centers require immense electrical consumption, the Governor outlined how the new power plants aim to add at least two gigawatts of new grid capacity or enough to power about 2 million Illinois homes.
Illinois lawmakers previously lifted a ban on certain types of nuclear reactors.
Pension Payments and Structural Constraints
Pension contributions will again involve a significant payment. The governor and lawmakers have made the required payments each year that he’s been in office. But the various retirement systems are still underfunded.
Pritzker has floated the idea of additional money going toward paying down the debt with a goal of near-full funding in about two decades. Lawmakers will have to agree to make that happen.
“The imperative of responsible governance and overcoming the fiscal irresponsibility of past decades must come ahead of the interests of any one politician, program, or party,” Pritzker said.
Federal Tensions and Fiscal Context
A significant portion of the governor’s speech focused on his criticism of federal policies under President Donald Trump, arguing that Illinois has been forced to fight in courts to reclaim billions in withheld funds, and that this cost in time, treasure, talent and taxpayer money has caused roughly $8.4 billion in damages to Illinois inflicted by the federal government.
Unlike the federal government, Pritzker noted, Illinois must balance its books each year.
A Social Media Tax?
Perhaps the most controversial element of the governor’s proposal is a social media platform fee, which the governor said could potentially generate $200 million annually for K – 12 education funding.
Under the proposal, large social media companies (those with 100,000 or more users) operating in Illinois would pay a state-imposed fee, with revenue being directed toward funding public schools. Gov. Pritzker framed the new measure as a way to hold technology platforms accountable for what he described as “harmful” impacts on children’s mental health as well as predatory financial scamming.
“Social media companies are profiting from online engagement of Illinois consumers,” Pritzker said. “If they’re going to feed off Illinois families, they ought to support Illinois families.”
“Love (actually) Is All Around”
In his concluding remarks, Gov. Pritzker referenced the power of love over twenty times.
“I’ve been thinking a lot lately about love – about loving people and loving your country and the power involved in both.”
Pritzker described how the challenges of this past year have made him “yearn for normal problems” and how former Republican governor and friend Jim Edgar served as an inspiration for putting love above politics or political partisanship.
After laying the concerns of the state, and of his office, plainly before the legislature – Pritzker delivered his most powerful line.
“I am begging my fellow politicians, my fellow Illinoisans, my fellow Americans to realize that right now in this country we are not fighting over policy or political party. We are fighting over whether we are going to be a civilization rooted in empathy and kindness — or one rooted in cruelty and rage.”
Final budget approval is due by the end of May.
