Gov. JB Pritzker’s State of the State and budget address Feb. 19 was given with an air of uncertainty amid national concerns  about the consequences of actions at the federal level.

The governor’s plan assumes a $173 million increase in federal funding – though Pritzker named several enacted or feared Trump policies that could alter estimates, including tariffs, food safety deregulation and potential health care cuts.

“Let me be clear, this is going to affect your daily lives,” Pritzker said, citing the efforts of Trump advisor Elon Musk via the federal Department of Government Efficiency. “Our state budget can’t make up for the damage that is done to people across our state.”

Alex Strum, director of the Governor’s Office of Management and Budget, echoed Pritzker’s concerns about a fiscal shakeup in Washington, D.C.

“There’s a lot of uncertainty in our outlook based on what’s going on at the national level regarding tariffs, tax policy (and) what the Federal Reserve is going to do,” Sturm said.

Furthermore, Pritzker claims the state is already facing a funding shortage, although he hopes the situation will be resolved shortly.

Pritzker wrote a letter to the federal Office of Management and Budget last week claiming $1.9 billion in promised federal funding is currently being withheld.

“There’s no real way to prepare for that,” Sturm said. “Obviously we are watching closely what’s going on at the national level, but I think the governor has tried to make clear that this state at this level of operations can’t cover any decisions that the federal administration or Congress makes to reduce its payments to Illinois.”

Pritzker’s Feb. 19 proposal was delivered with the expectation of receiving the previously earmarked additional federal funding as well as the projected future increase.

Highlights of the budget as presented include increased funding for affordable child care throughout the state and an emphasis on creating affordable housing.

In addition to increased financing of K-12 public education, Pritzker is also making a push to encourage Illinois’ community colleges to begin offering four-year degrees.

The proposed $55.2 billion budget includes a $2 billion increase in spending against what is expected to be a $1.5 billion increase in base tax revenue.

To balance the budget, Pritzker proposed eliminating a $330 million healthcare program for noncitizens ages 42-64, saving over $400 million, while keeping the Health Benefits for Immigrant Seniors program, which would maintain coverage for low-income immigrant and noncitizen seniors. 

Other savings come from operational efficiencies, eliminating inactive boards and tax amnesty programs.

While Pritzker described his budget as “responsible and balanced,” Republican lawmakers in the state criticized an increased in new tax measures among other things. 

The Illinois Black Caucus and Latino Caucus, both led by Democrats, also took issue with parts of the budget.

The Black Caucus criticized the budget’s failure to adequately address systemic racial disparities and invest sufficiently in Black communities while Latino lawmakers opposed the noncitizen healthcare cuts.

Illinois Republicans took issue with the size of the budget – which would be the largest ever in Illinois – in addition to higher taxes and what they perceive as an overestimation of projected revenue.

“For months, we’ve been told that Illinois was facing a budget deficit of more than $3 billion, yet suddenly just in time for his budget address, the Governor’s administration found billions in extra revenue to propose the largest spending budget in state history,” State Sen. Terri Bryant (R-Murphysboro) said. “This isn’t responsible governance. It is political gamesmanship designed to justify more reckless spending.”

State Rep. David Friess (R-Red Bud) issued a similar response.

“If Democrats continue down this path, Illinois’ financial crisis will only get worse,” Friess said. “We’ve already lost too many residents and businesses to states with lower taxes and smarter policies. Taxpayers deserve a government that budgets responsibly, not one that spends first and scrambles for answers later. House Republicans have warned for years that reckless spending would lead us here, yet Democrats ignored every warning. Now, we’re staring at a multi-billion-dollar shortfall, and if we don’t change course, that deficit will balloon even further. The Governor’s budget proposal includes $590 million in new taxes and aggressive revenue assumptions, which only add to the uncertainty.”

Pritzker urged bipartisan cooperation, insisting he will only sign a balanced budget, with negotiations ongoing until May.