Today, Governor JB Pritzker signed Executive Order 2025-05 directing state agencies to identify up to 4% of Fiscal Year 2026 General Funds appropriations to reserve in order to mitigate the impact of Trump’s disastrous economic policies while working to maintain core services. The action comes as all states, including Illinois, are forced to manage the Trump and Congressional Republicans’ budget bill that threatens state revenue streams and places pressure on Illinois’ fiscal stability.
Trump’s reckless economic policies are wrecking state economies, stifling job growth, and increasing unemployment in key sectors. At the same time, Trump’s tariffs are taxing working families, increasing the costs of everyday goods and disrupting supply chains. This chaos is making it harder for businesses to hire, expand production, or maintain payrolls. In the coming months, Trump’s budget bill will further compound these pressures, creating uncertainty over state revenues as slower economic activity directly affects the amount of revenue collected and ultimately puts funding for core services at risk. To protect the State’s fiscal stability, Governor Pritzker is directing agencies to take proactive steps to brace for these challenges and work to maintain core services.
“Illinois has built a strong economy and proven its fiscal responsibility, but Trump’s disastrous policies threaten to undo that progress,” said Governor JB Pritzker. “Trump and Congressional Republicans sealed one of the largest wealth transfers in American history, stripping health care, food assistance, and other essential supports for working families to fund permanent tax breaks for the wealthy. At the same time, tariffs are hurting our farmers and businesses, slowing job growth, and driving up costs for Illinois families. 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.”
Under the order, agencies under the Governor will:
- Conduct immediate budget reviews to identify efficiencies and reductions.
- Identify up to 4% of General Funds appropriations for FY26 reserves to reinforce state finances.
- Limit non-essential spending, purchases, and travel.
- Review all hiring decisions and prioritize only essential roles.
- Propose programmatic changes or appropriation transfers if FY26 budget shortfalls emerge.
Agencies must submit reports on their progress to the Governor’s Office and the Governor’s Office of Management and Budget (GOMB) within 30 days. Key obligations such as pension payments and K-12 funding, and offices outside the Governor’s authority (i.e. legislative, judicial, and other constitutional offices) will not be impacted. The Executive Order will take effect immediately.
Trump’s Budget and Tariffs Are Undermining Illinois’ Economic Growth
For years, Illinois’ economy has been on the rise. As the nation’s 5th largest economy, the state surpassed $1 trillion in GDP in 2022 and steadily grew revenues. That growth enabled Gov. Pritzker to deliver seven balanced budgets, secure nine credit rating upgrades, and eliminate a massive bill backlog. Now, Trump’s budget bill and tariffs are already undermining growth and threatening the fiscal stability Illinois worked hard to build.
- Farmers Feeling the Pinch: Illinois’ $13.7 billion agriculture industry is being pummeled by tariff-driven trade disruptions, costing farmers income and jeopardizing jobs across rural communities
- Gutting of Medicaid and Rising Premium Costs: Cuts to Medicaid and Affordable Care Act (ACA) coverage will remove healthcare access for an estimated 330,000 Illinoisans, raise premiums for those insured, and risk hospital closures in rural areas.
- State Revenues Under Pressure: Because most state tax codes are tethered to federal law, Trump’s giveaways to the wealthy automatically slash states’ revenues, including in Illinois, potentially reversing years of growth and fiscal stability. These changes
will affect Illinois as well as other states’ revenue outlooks for the foreseeable future.
- Cuts to SNAP Threaten Families: Reductions in SNAP and other supports shift costs directly onto states and will leave an estimated 360,000 Illinois families at risk of losing access to these benefits and forced to fend for themselves as costs continue
to rise.
- Cooling Labor Market: The August 2025 jobs report confirmed a national slowdown, with only 22,000 jobs created nationwide and unemployment reaching its highest level since 2021. Illinois mirrored that trend, shedding 13,300 payroll jobs in August, the
state’s largest monthly decline since July 2023 and the fifth overall drop this year with employers squeezed by tariffs and Trump’s anti-immigrant policies restricting access to needed workers, leaving businesses unable to hire, expand, or keep pace with demand.
While no state in the nation — including Illinois — can fully backfill the cuts imposed by the federal government, Gov. Pritzker remains committed to mitigating their impact wherever possible. This action echoes previous budget reserve measures including those implemented during the COVID-19 pandemic, when agencies were asked to conserve resources to maintain fiscal stability amid uncertainty.
Today’s action also builds on Gov. Pritzker’s efforts to address the economic challenges created by Trump’s tariffs on Illinois businesses and workers. Earlier this summer, Gov. Pritzker signed an Executive Order directing agencies to evaluate the scale and impact of Trump’s tariffs in key economic sectors. He has also led trade missions, signed economic cooperation agreements with the United Kingdom and Mexico, and continued engagement with international leaders, including the Canadian Ambassador to the U.S. and the Consul General of Mexico in Chicago.
Pritzker said the Trump administration is hurting economy, which will reduce state revenue, as well as tax changes.
“Tariffs are hurting our farmers and businesses, slowing job growth and driving up costs for Illinois families,” Pritzker, who’s seen as a potential presidential candidate, said in a statement, just a few hours after making similar points in an interview on MSNBC’s “Morning Joe.” “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.”
One change in federal tax law passed by Congress extended the reduction in the corporate income tax from 35% to 21%, which doesn’t affect states. But it also accelerated deduction of business expenses, such as property and equipment, allowing them to be taken immediately, rather than being spread out over several years.
Warning signs already were flashing for Illinois and other states as they completed their budgets this summer after several years of strong growth in income taxes, as well as planned reductions by Congress in federal funding for food and healthcare.
- Greg G - Tuesday, Sep 23, 25 @ 9:30 am:
Any news on here about Articles of Impeachment being field against Gov. J B Pritzker? I saw it on MSN.com
- NotRich - Tuesday, Sep 23, 25 @ 9:33 am:
When after 7 years of raising taxes and fees and not living within your means.. you have to blame someone. But obviously not yourself.
- walker - Tuesday, Sep 23, 25 @ 9:35 am:
Very moderate move. I hope it’s enough.
- JS Mill - Tuesday, Sep 23, 25 @ 9:47 am:
=When after 7 years of raising taxes and fees and not living within your means.. =
Balanced budgets would indicate that we actually have been “living within our means”.
Also, things cost more over the course of 7 years.
- Dirty Red - Tuesday, Sep 23, 25 @ 9:48 am:
Why an EO, other than its PR value?
- City Zen - Tuesday, Sep 23, 25 @ 9:48 am:
==Illinois’ economy has been on the rise. As the nation’s 5th largest economy, the state surpassed $1 trillion in GDP in 2022 and steadily grew revenues==
Illinois’ GDP growth since 2022 is 2nd worst in the country and has lagged nearly every state since JB took office. Surpassing $1T GDP was an inevitability only prolonged by our lagging growth, nothing policy-driven.
- Steve - Tuesday, Sep 23, 25 @ 9:52 am:
-Illinois has built a strong economy and proven its fiscal responsibility-
It’s great to know Illinois doesn’t have a public pension fund problem because JB thinks Illinois is “fiscally responsible”…
- low level - Tuesday, Sep 23, 25 @ 10:03 am:
==It’s great to know Illinois doesn’t have a public pension fund problem==
How would you solve that issue?
- Steve - Tuesday, Sep 23, 25 @ 10:06 am:
1) All new employees would get a 401A plan
2) All vested employees pensions would be financed by higher taxes, cuts in spending, and bonds.
- Pundent - Tuesday, Sep 23, 25 @ 10:29 am:
=Surpassing $1T GDP was an inevitability only prolonged by our lagging growth, nothing policy-driven.=
Maybe. But getting the next $1T is a lot harder than the first. And doing it while creating an environment where workers have decent wages and protections is really hard. But I can see why you and others might be envious of neighbors like Indiana and Missouri.
- Huh? - Tuesday, Sep 23, 25 @ 10:40 am:
The State has had a under funded pension problem going back decades. They have never reneged on paying the pensions.
- JoeMaddon - Tuesday, Sep 23, 25 @ 10:41 am:
**Any news on here about Articles of Impeachment being field against Gov. J B Pritzker? I saw it on MSN.com**
LOL
- JoeMaddon - Tuesday, Sep 23, 25 @ 10:42 am:
**It’s great to know Illinois doesn’t have a public pension fund problem because JB thinks Illinois is “fiscally responsible”…**
It’s great to know that … you want to just make up things that JB said or meant.
- Grandson of Man - Tuesday, Sep 23, 25 @ 10:46 am:
It’s a smart idea to start preparing, and a tremendous challenge to plan for an economy run by the uncle who spouts utter political nonsense at the holiday dinner table.
It’s funny on one level and a big lesson. Illinois doomers have been blaming unions for bad finances and economies, but it’s MAGA and their policies causing the damage. Union members are stable and reliable contributors to the economy.
- Tim - Tuesday, Sep 23, 25 @ 10:46 am:
Can’t spend temporary federal gubmint funding on permanent state personnel expenses and not go broke. JB, the state and the city and many other agencies that do not know how to budget properly absolutely have spending problems.
- JS Mill - Tuesday, Sep 23, 25 @ 11:20 am:
=It’s great to know Illinois doesn’t have a public pension fund problem because JB thinks Illinois is “fiscally responsible”…=
Yes, so we should just close up shop and become North Mississippi. Amiright?
This is a problem more than a century in the making. Pritzker is one of the few governors that has made payments above the minimum required amount. This admin did not create the problem but they are working on making it better not worse. Pretty responsible except in spelunker math.
=1) All new employees would get a 401A plan
2) All vested employees pensions would be financed by higher taxes, cuts in spending, and bonds.=
Not sure what a 401A is (did you mean 401K?) but that will actually cost more since it requires SSI. And of course leaving public employees at the whim (even more so) of politicians and a financial markets. See if you can find 60 nand 30 for that one.
All current vested employee pensions are financed by taxes and bonds. For the thousandth time: The issue isn’t the annual cost of the pension. Illinois is fully capable of making that payment. The real problem is the legacy debt and intentional underfunding by the ILGA, made worse by the 2008 financial crisis. That cost dwarfs the annual cost.
= JB, the state and the city and many other agencies that do not know how to budget properly absolutely have spending problems.=
Chicago yes. State no. The state did not increase body count using fed stimulus. CPS in particular (to the tune of 6,000-7,000 people) did.
- Demoralized - Tuesday, Sep 23, 25 @ 11:29 am:
==Can’t spend temporary federal gubmint funding on permanent state personnel expenses==
The state did not spend that temporary money on ongoing costs. Try again.
And, by the way, when you say things like “gubmint” that says a lot about you and none of it is good.
- Demoralized - Tuesday, Sep 23, 25 @ 11:31 am:
==you have to blame someone==
Facts are facts. I can’t help it if you refuse to accept those facts. The fact is that Donald
Trump has weaponized federal funding. That is indisputable.
- Steve - Tuesday, Sep 23, 25 @ 11:37 am:
-Yes, so we should just close up shop and become North Mississippi-
This is a straw man argument. Wisconsin is right next store to Illinois. Any doubt who’s public pension system is in better shape?
- Flapdoodle - Tuesday, Sep 23, 25 @ 11:37 am:
Some people posting here seem to believe that they can make something true just by typing it or including vague references like “I saw/heard on . . . .” That doesn’t cut it. Please use complete, specific citations using verifiable data if you hope to be taken seriously.
- Welllllllllll - Tuesday, Sep 23, 25 @ 11:39 am:
Someone should let Curran know that the Governor has made the hard decisions. The proof is in the constant credit upgrades and the positive analysis on the multiple balanced budgets the democrats have passed that he’s voted against. Why do these people think we should take them seriously anymore? What have they done to fix the budget mess their party left seven years ago? Absolutely nothing is the answer.
- RNUG - Tuesday, Sep 23, 25 @ 11:43 am:
== The State has had a under funded pension problem going back decades. ==
About 12 decades. Illinois first shorted pension funding in the early 1900’s.
- RNUG - Tuesday, Sep 23, 25 @ 11:45 am:
Not the first time a Governor has said to set aside x% as a reserve / way to cut spending. It’s a smart move, but I would have gone with 7% - 10%.
- Excitable Boy - Tuesday, Sep 23, 25 @ 11:58 am:
- This is a straw man argument. Wisconsin is right next store to Illinois. -
And they have a graduated income tax. I’m on board if you are.
- low level - Tuesday, Sep 23, 25 @ 11:59 am:
==The proof is in the constant credit upgrades and the positive analysis on the multiple balanced budgets the Democrats have passed ==
Spot on. The Democrats are the party of fiscal responsibility.
- Steve - Tuesday, Sep 23, 25 @ 12:03 pm:
-And they have a graduated income tax.-
Hard to see any other way out.
- JB13 - Tuesday, Sep 23, 25 @ 12:05 pm:
If your state economy requires massive amounts of federal money to continue to “grow,” it was never really growing in the first place
- Lurker - Tuesday, Sep 23, 25 @ 12:12 pm:
“ but I would have gone with 7% - 10%.”
That sounds good in theory, but there is no way to find that kind of money. Remember when Rauner was gov, he asked for a 10% cut but not even IPI came up with 3%. The unfortunate truth is that many Agencies are already woefully understaffed and much of the spending is mandated/needed
- Probably should retire soon - Tuesday, Sep 23, 25 @ 12:16 pm:
To Curran’s point, per the Governor’s own Economic and Fiscal Policy Report here, https://budget.illinois.gov/content/dam/soi/en/web/budget/documents/economic-and-fiscal-policy-reports/Economic_and_Fiscal_Policy_Report_FY25_FINAL_11.1.24.pdf there is a massive anticipated deficit that the Governor did nothing to address. No cuts in spending, just one-time quick fixes that now have us staring down the barrel of another tax increase on our already overburdened taxpayers.
- Harrison - Tuesday, Sep 23, 25 @ 12:33 pm:
Springfield politicians agree on very little but they just unanimously added 11 billion dollars to it’s largest cities pension debt pushing funding below 20%
They then scratch their head and wonder why job growth and investment lags almost every state in the nation
- City Zen - Tuesday, Sep 23, 25 @ 12:37 pm:
==Wisconsin is right next store to Illinois. Any doubt who’s public pension system is in better shape?==
Apples and oranges. Wisconsin’s pension system utilizes a cost and risk sharing method between the govt and plan participants that would be unconstitutional n Illinois.
- ArchPundit - Tuesday, Sep 23, 25 @ 12:40 pm:
==If your state economy requires massive amounts of federal money to continue to “grow,” it was never really growing in the first place
Seems like you should take it up with the states that have a positive balance of payments and not a state like Illinois that gets back less than it gives.
https://www.axios.com/2025/02/12/states-money-federal-government
- RNUG - Tuesday, Sep 23, 25 @ 12:40 pm:
== they have a graduated income tax ==
Have to get the 1970 State Constitution changed first.
Didn’t fly with the voters last try.
- Steve - Tuesday, Sep 23, 25 @ 12:41 pm:
- Wisconsin’s pension system utilizes a cost and risk sharing method-
Probably more prudent than the Illinois way of doing things. If no changes are made in Illinois : the only thing that will change is higher rates of taxation.
- ArchPundit - Tuesday, Sep 23, 25 @ 12:43 pm:
==. If no changes are made in Illinois :
JS Mill pointed out that having to move to Social Security would be a bigger hit and you just ignored it.
- Demoralized - Tuesday, Sep 23, 25 @ 12:44 pm:
== Illinoisans aren’t buying ==
Do a poll and I bet you would be proven wrong Representative.
I love it when Republicans make statements like this. The elections would seem to indicate that it is you that Illinoisians don’t agree with.
- JS Mill - Tuesday, Sep 23, 25 @ 12:51 pm:
=This is a straw man argument. Wisconsin is right next store to Illinois.=
No, it is sarcasm.
=Any doubt who’s public pension system is in better shape?=
I live in Illinois and mostly pay attention to Illinois, but Wisconsin also increased state contributions to the pensions system while at the same time they added a required teachers to contribute. Before that, only the state paid in. As RNUG pointed out, the Illinois didn’t pay in the full payment gong back 120 years plus.
Wisconsin’s population and economy are also a fraction of the size of Illinois.
=If your state economy requires massive amounts of federal money to continue to “grow,” it was never really growing in the first place=
Alabama, West Virginia, and Mississippi (among many) would like a word.
- Walter Payne - Tuesday, Sep 23, 25 @ 12:54 pm:
I had to put down my coffee or spit it out.
Pritzker is making the same argument regarding the state’s finances about Trump, that Mayor Johnson made regarding the city and CPS finances about Pritzker.
“My budget is a mess because of the guy upstairs.”
Both the governor and the mayor make fair points, BTW.
But the governor has flat-out rejected the mayor’s argument.
And, in a twist, Republicans are basically making the same argument about the state that Pritzker is making about Chicago.
- Harrison - Tuesday, Sep 23, 25 @ 1:11 pm:
Mayor Johnson and Governor Pritzker both believe the buck stops at the White House .
They never take any responsibility for the many problems in Illinois and Chicago, it is 100% someone else’s fault
- Pundent - Tuesday, Sep 23, 25 @ 1:12 pm:
=But the governor has flat-out rejected the mayor’s argument.=
Not entirely. I believe the governor has said that he would like to increase funding for all schools. And he’s certainly done more than his predecessors. But the state simply doesn’t have the revenue to do more. The feds, on the other hand, have diminished and/or cut off funding. That’s an entirely different scenario.
- Norseman - Tuesday, Sep 23, 25 @ 1:18 pm:
The IL MAGA GOP is doing what all MAGA pols are doing - deflecting attention from the horrible impact of the BBB on the people.
- Irreverent - Tuesday, Sep 23, 25 @ 1:19 pm:
The feds are literally holding Chicago residents’ own money hostage from us.
- JS Mill - Tuesday, Sep 23, 25 @ 1:22 pm:
=Pritzker is making the same argument regarding the state’s finances about Trump, that Mayor Johnson made regarding the city and CPS finances about Pritzker.=
No. Pritzker has not cut promised appropriations to Chicago. He has not attempted to blackmail chicago for some ideological capitulation.
=They never take any responsibility for the many problems in Illinois and Chicago, it is 100% someone else’s fault=
True for Johnson. Not true for Pritzker. True for Trump.
- Pundent - Tuesday, Sep 23, 25 @ 1:23 pm:
=They never take any responsibility for the many problems in Illinois and Chicago, it is 100% someone else’s fault=
Chicago subsidizes the state, and Illinois, along with many other blue states, subsidizes the country. So it sounds like both the city and state are taking responsibility for the problems of others.
- Grandson of Man - Tuesday, Sep 23, 25 @ 1:25 pm:
This is owned by Republicans. They won’t stand up to their leader and stop the tariffs and arbitrary raising of costs on businesses.
Where are the tears and outrage of those eternally crying and casting blame about business costs in Illinois? Very telling that they are finding fault with the person who is trying to minimize damage, not those who are causing it.
- Harrison - Tuesday, Sep 23, 25 @ 1:25 pm:
The difference in the employees contributions to pensions between Wisconsin and Illinois is more like watermelons and grapes
Wisconsin teachers contribute 6.75% matched by their employer
Illinois teachers contribution is by law 9%
Most school districts (491 of 886) pick up the full 9% of the employees share of the contribution
69 districts pick up a portion
37% of school districts do not pick up employee contribution
- Rich Miller - Tuesday, Sep 23, 25 @ 1:31 pm:
===Illinois teachers contribution is by law 9% ===
And the state picks up the employer half.
- Sue - Tuesday, Sep 23, 25 @ 1:56 pm:
JB has increased spending by 47 percent since taking office- what is 4 percent going to do other then give him another excuse to make a speech?
- low level - Tuesday, Sep 23, 25 @ 2:02 pm:
== JB has increased spending by 47 percent since taking office==
Source?
- Sue - Tuesday, Sep 23, 25 @ 2:12 pm:
Tribune
- Sue - Tuesday, Sep 23, 25 @ 2:13 pm:
It is not disputed
- City Zen - Tuesday, Sep 23, 25 @ 2:38 pm:
==And the state picks up the employer half.==
Important distinction. In Wisconsin, the school district picks up the employer portion for teachers, not the state. One of several big differences between the systems. So can we all drop the WI/IL comp now?
- JoeMaddon - Tuesday, Sep 23, 25 @ 2:40 pm:
**JB has increased spending by 47 percent since taking office- what is 4 percent going to do other then give him another excuse to make a speech?**
Well… inflation alone is up 29% from Jan, 2019 to today.
However, you’re also overlooking the fact that things were a complete mess under the previous Governor, and that the state had underinvested in essential services like human services for decades. If you were to do an honest assessment of state spending, we’re still far behind where we need to be on human services spending.
Furthermore, there is a state law (passed before the current governor took office) that requires K-12 funding to increase annually. EBF alone has seen a 31% increase in funding.
So, in other words, we have trended a bit above inflation, but also had a LOT of catching up to do.
- Realist - Tuesday, Sep 23, 25 @ 2:41 pm:
Hope none of the 4% is going for JBs favorite funding group. The non-citizens in Chicago
- maybe - Tuesday, Sep 23, 25 @ 3:04 pm:
I am just glad that after six years JB has finally found somebody else to blame all of Illinois problems are. Lord knows it hasn’t been the decades of corruption, waste, fraud, or perhaps the money shuffle that is CMS.
- low level - Tuesday, Sep 23, 25 @ 3:31 pm:
Your JBDS, JB Derangement Syndrome, is showing again
- Whatta Bout - Tuesday, Sep 23, 25 @ 3:45 pm:
So why is IDPH doing a big reorg and creating new higher level management positions if the Governor is saying only essential hiring is allowed?
- Demoralized - Tuesday, Sep 23, 25 @ 4:38 pm:
==So why is IDPH doing a big reorg and creating new higher level management positions if the Governor is saying only essential hiring is allowed?==
Dude, this EO came out TODAY and agency Directors were only notified TODAY.
- Tim - Tuesday, Sep 23, 25 @ 6:38 pm:
Graduated income tax? Sorry, excitable boy the people of Illinois have spoken with a resounding no thank you.