BUDGET UPDATE: Capitol News Recap | Wednesday, Feb. 4
We are just two weeks away from Gov. JB Pritzker’s annual budget address.
The latest revenue data from the Commission on Government Forecasting and Accountability shows what sort of challenge Pritzker and lawmakers are tasked with to eliminate a $2 billion deficit.
The commission’s January report released on Tuesday shows revenue was 3% lower in January compared to the same month in 2025. The reason? Federal funding.
Federal funding to Illinois has declined for three consecutive months, though the commission cautioned there could be a variety of reasons for that, such as the timing of payments.
In any case, federal funding was 35% lower this January than last and is now down 8% for the year.
Overall revenue numbers for the year are still up 3.5%, but that’s not giving any stress relief to the budget makers in Pritzker’s office.
President Donald Trump and his administration continue to threaten to cut off money to Illinois and other Democratic-led states. Whether or not he follows through with his threats, or if the courts even allow him to, is another story.
Watch our interview with Darren Bailey at the link above.
But the constant threats mean lawmakers cannot be certain what sort of money the state will receive from the federal government, which covers the cost of a wide variety of services.
We’ll be watching over the coming weeks to see what Pritzker might propose.
We are also watching elections as early voting begins on Friday, and the primary is now six weeks away. We take an in-depth look at the Democratic primary for comptroller and have details about money flowing through the Senate race.
And Nikoel Hytrek has a story below about what impact one federal funding freeze – which is thus far on hold in the courts – could have on child care providers.
Also check out our stories about the state maintaining contact with the World Health Organization, Pritzker’s plan for pension reform, and an FBI investigation into a former southern Illinois police chief.
And read Jenna Schweikert’s recap of Marimar Martinez’s testimony in Washington, D.C. Martinez was shot by Border Patrol agents in October and branded a “domestic terrorist” before the feds ultimately dropped all charges.
Border Patrol shooting
‘My own government attempted to execute me,’ Chicago woman shot by Border Patrol testifies
Court documents state that Marimar Martinez’s vehicle collided with a federal agent’s, although it is undetermined which vehicle initiated the collision. Martinez’s lawyers maintained she was not at fault for the accident and never intentionally hit the CBP agent’s vehicle. But the Department of Homeland Security quickly spun the incident as an “ambush” on federal agents, and Martinez was charged with assault — a charge that a judge has since dismissed with prejudice, meaning it can’t be refiled.
“On Friday, I was teaching the young children at the Montessori School, and we were singing and dancing and getting ready for spooky season, preparing fall activities to do the following week,” Martinez said. “On Saturday, my own government was calling me a domestic terrorist, and I was in federal detention centers with the bullet holes all over my body.”
Comptroller’s race preview
Election ’26: 4 Democrats seeking to replace Mendoza as Illinois comptroller
Who wants to manage Illinois’ checkbook as the state faces growing financial uncertainty? Three state legislators and the treasurer of one of the state’s largest counties have raised their hand.
State Sen. Karina Villa of West Chicago, Rep. Margaret Croke of Chicago, Rep. Stephanie Kifowit of Oswego, and Lake County Treasurer Holly Kim are running in the Democratic primary. Each sat down with Capitol News Illinois reporters in recent days to answer questions on our Capitol Cast podcast.
Watch our interviews of the comptroller candidates on YouTube
Campaign finance
Pritzker drops $5M to boost Lt. Gov. Juliana Stratton in Senate race
Gov. JB Pritzker donated $5 million in December to a political action committee supporting Lt. Gov. Juliana Stratton’s U.S. Senate bid, according to federal campaign finance records filed over the weekend.
Illinois’ billionaire governor had long been expected to use his hefty financial weight to bolster his No. 2, whom he’s endorsed in the Democratic primary to succeed retiring Sen. Dick Durbin. It comes as Stratton’s own direct fundraising continues to lag polling leader, U.S. Rep. Raja Krishnamoorthi, with just six weeks until the primary and early voting kicking off on Feb. 5.
Pension plan
Pritzker sticking to proposal to fully fund pensions
The governor announced on Monday he is reviving a plan he introduced during his 2024 budget address that calls for fully funding pensions by 2048 and changing benefits calculations to comply with Social Security requirements. Despite years of negotiations that began even before Pritzker made his pitch, the General Assembly has not moved forward on Pritzker’s or anyone else’s pension reform plans.
Child care funding
Child care funding freeze could worsen shortage in Illinois, providers say
If the courts allow the Trump administration’s freeze on federal child care funding to happen, a Springfield provider said she’ll likely have to close her 30-year business. A recent report revealed almost three-quarters of Illinois counties have a severe shortage of child care providers, meaning there are either no providers or only one open spot for every three children in a geographic area.
Investigation
A lot is riding on the Illinois Quantum and Microelectronics Park – particularly for a South Side community that has been searching for a new economic engine since steel manufacturing collapsed in the region more than 30 years ago.
Search warrant reveals FBI is investigating former Carlyle police chief
A search warrant executed by the FBI revealed the target of a criminal probe was then Carlyle Police Chief Mark Pingsterhaus, who leased office space in the police station to a federal task force that battles public corruption in southern Illinois.
Public health
Illinois joins WHO global outbreak network after U.S. withdraws
Illinois will join the World Health Organization’s Global Outbreak Alert and Response Network to counterbalance the federal government’s withdrawal. The network monitors disease outbreaks across the globe and prepares countries to respond to those outbreaks. As a member, Illinois will have access to research, timely alerts and information about outbreaks, risk assessments and trainings so state officials can respond to public health emergencies.
Capitol News Illinois is a nonprofit, nonpartisan news service covering state government. It is distributed to hundreds of newspapers, radio and TV stations statewide. It is funded primarily by the Illinois Press Foundation and the Robert R. McCormick Foundation, along with major contributions from the Illinois Broadcasters Foundation and Southern Illinois Editorial Association.
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