* Crain’s…

Illinois faces a $239 million drop in hospital and managed care organization provider tax revenue, an important mechanism for funding the state’s Medicaid program, in 2028 and as much as a $1.5 billion cut over the next five years, according to a new assessment of looming budget challenges for the state.

The issue of diminishing provider taxes and the somewhat-corresponding payments back to hospitals is another multiyear, cost-cutting change to Medicaid rules contained in the federal Big Beautiful Bill Act.

While much has been made of the threat of Medicaid cuts over the next decade in the form of dropping enrollment due to twice-yearly re-enrollment and new work requirements included in the spending plan, provider tax revenues and directed payments to hospitals will be another kind of cut with which Illinois and health care providers will have to contend. And overall Medicaid reimbursements will have an impact on that funding.

The Institute of Government & Public Affairs at the University of Illinois System produces an annual Fiscal Future project analyzing Illinois’ fiscal condition and long-term trends. For fiscal 2025, the report lists the federal policy changes to provider taxes as a long-term challenge to growth in state revenue. The report also examines evidence of a long-term decline in state sales taxes and the act’s impact on re-categorization of individual and corporate income tax revenues.

* From the report…

In Illinois, assessments on healthcare providers (hospitals) and managed care organizations (MCOs) generate the two largest revenues, comprising over 75% of all provider tax revenues. The state’s specific assessment fees and taxes vary by provider type (hospitals, MCOs, long-term care facilities, etc.) and are not easily translated to simple tax rates applied to a patient revenue base. That said, tax rates appear to be high in Illinois, leaving the state vulnerable to policies that require reductions in these rates. NASBO’s FY 2024 data show that Illinois was one of the states that made most use of such provider assessments.

*** Statewide ***

* Stateline | ‘Teaching us how to grow with our babies’: How prisons allow mothers and infants to nest for months: Across the country, fewer than a dozen states operate nursery programs that allow incarcerated mothers to live with their newborns. […] Newer programs — in Illinois, Indiana, Missouri, Nebraska, South Dakota, Ohio, Washington state and West Virginia — vary widely in size, eligibility and funding. Many rely heavily on nonprofit partners or donations to cover essentials such as diapers, cribs and parenting classes.

* Crain’s | The alternative protein boom didn’t end. It just moved to Illinois.: Illinois is emerging as the nation’s alternative protein powerhouse. With more than 30 companies, millions in grants for research and a new state task force roadmap, the state is positioned to dominate the B2B side of a rapidly evolving industry. While plant-based burgers are losing shelf space at supermarkets, the alternative protein sector has quietly shifted upstream to ingredients, food inputs and industrial applications — a pivot that plays directly to Illinois’ strengths in agriculture, food manufacturing and fermentation technology. The state trails only California and New York in alt-protein companies and leads the nation in soybean production, the primary source for plant-based proteins.

* Press release | Illinois leads Midwest in workforce development, ranks #3 in US: “Illinois’ rise to the top of workforce development rankings reflects our commitment to building the strongest talent pipeline in the nation,” said Governor JB Pritzker. “We’re aligning education and training with the real needs of employers so people can get good jobs and companies can confidently invest and expand right here in Illinois.”[…] “As Illinois comes off a record year of economic growth, the latest economic development rankings are solidifying Illinois’ position as a global economic powerhouse,” said DCEO Director Kristin Richards. “With continued investments in workforce development, record-breaking investments incentivized through DCEO programs, and a collaborative effort to target emerging industries, momentum is building in Illinois.”

*** Statehouse News ***

* Utility Dive | Illinois sets 3-GW energy storage target, requires utilities to develop virtual power plants: The state has developed 6 GW of renewable energy since passing the Climate and Equitable Jobs Act in 2021, and has another 6 GW in development, officials said. The new law will grow storage resources and directs utilities to develop virtual power plants. It also lifts a moratorium on large nuclear reactor development in Illinois and creates an integrated resource planning process allowing for state agencies to suggest adjustments to energy programs and targets.

* WTVO | New Illinois bill would require sex offenders to register their drones: Rep. Katie Stuart (D-112th) introduced HB4332 this week. The bill would amend the Illinois Sex Offender Registration Act and require sex offenders register drone ownership, including make and model, with the Illinois State Police. Individuals on the Sex Offender Registry are already required to give authorities a current photograph, address, employer, phone number, email addresses, and instant messaging identities, and identities related to all other Internet communications.

* Sun-Times | Feds agree to halt proposed national youth gender care ban while court weighs motion: The federal agency agreed this week to hold off on communicating its new regulations — which had only been announced, not formally communicated to agencies and healthcare providers across the country — while the motion that could shut down the proposed regulations is weighed by an Oregon District Court judge, per documents filed in an ongoing suit from a coalition of legal representatives and officials from 20 states, including Illinois, and Washington D.C. The federal government has until February 3 to respond to the motion and file its own motion against it, according to court documents.

*** Chicago ***

* Block Club | Alderman Urged Riders Not To Use Public Transit After Dark, But Data Shows CTA Crime Is Down: W. Robert Schultz III, a campaign organizer with the Active Transportation Alliance, said that while there have been a number of tragic attacks on public transit this year, “those outlying incidents really stand out in our mind” and can have outsized impacts on our perceptions of safety. He said telling riders to avoid public transit after dark “just doesn’t make sense.” “We live in a northern city, if darkness is your criteria for using CTA, half the year you better be home by 3:30 p.m.,” Schultz said.

* Sun-Times | AI-generated bomb threat shuts down St. Ignatius College Prep on Near West Side: Chandler said the voice recording of the threat was “very robotic sounding.” Local investigators told him they suspect the recording was apparently AI-generated. Chicago police responded to a call of service at the school and the FBI were in contact with the school and local law enforcement.

* Block Club | Opioid Task Force Moves Office To West Side Corner That’s ‘Epicenter Of Fentanyl Crisis’: Last year, there were 15 opioid overdose deaths within a half mile of the Lake Street and Pulaski Road intersection, according to the Cook County Medical Examiner’s dashboard mapping opioid-related cases. The greater West Side also sees a disproportionate number of opioid deaths. The area near CTA stops have become hotspots for drug use, with the trains and their stations often providing shelter for people suffering from drug problems, task force members said. Narcan vending machines have been added to several CTA stations across the city through a 2023 city pilot program, which last year expanded to include the nearby Harlem/Lake station.

* TV News Check | WGN News To Launch New Nightly Political Show, ‘The Point’: Nexstar Media’s WGN-TV Chicago will debut a new political show, The Point, hosted by Political Editor Tahman Bradley, on Monday, Jan. 26. The show will air weeknights at 6:45 pm and will inform viewers about stories in politics that affect their daily lives. “Through original reporting and in-depth interviews, The Point will give viewers direct access to elected officials, candidates for office, senior aides/strategists, and interesting voices,” the station says.

* Sun-Times | The Art Institute’s new acquisitions include German oil painting, a rare Indian textile and a Richard Hunt sculpture : Among last year’s standout acquisitions is the Schad portrait of the 20th-century Austrian composer Josef Matthias Hauer, who helped introduce 12-tone musical composition. Oehler said this piece, which is already on view at the museum, is “tremendously exciting.” While Schad, who helped usher in the avant-garde New Objectivity movement in Germany, is more widely collected and known in Europe, the Art Institute says this is the first of his portraits to enter a U.S. museum.

* Crain’s | Bears-Packers grudge match might be the NFL’s hottest-ever Wild Card ticket: According to several ticket platforms and analysts, the Bears-Packers game is set to be the priciest NFL Wild Card Round playoff game in history for fans, with average ticket prices soaring to more than $753 apiece, according to Victory Live. That breaks a record previously held by the Detroit Lions and Los Angeles Rams game in January 2024, the firm stated in a press release.

* Sun-Times | Record-breaking rainfall leaves hundreds of streets and basements flooded: As of 9:02 a.m. Friday, 94 water in basement and 209 water in street calls were logged for Jan. 9, the data shows. Including both water in basement and water on street complaints from Thursday through 9:02 a.m. Friday, the Chicago Lawn neighborhood ranked first in complaints with 65 total, according to city data. Ashburn, Lake View, and Austin had the next most complaints reported with 47, 46 and 44 respectively.

* Sun-Times | How a mild-mannered suburban Chicago delivery driver transforms into Bearman: “I was a little bit of a shy guy years ago,” said Wachter, 63. “When I put the costume on, I can change into somebody.” […] “Chicago gets the moniker of blue-collar, hard working, tough, gritty … They can take adversity,” Wachter said. “This team fights to the end, they don’t care if they are down, we’re gonna beat you somehow.”

*** Cook County and Suburbs ***

* Aurora Beacon-News | Kane County mulling regulations on short-term home rentals in unincorporated areas: Kane County is not alone in considering this sort of measure — Skokie has discussed regulations on them and Chicago aldermen have mulled giving themselves the power to ban short-term home rentals from opening in their wards. And Lake County, for example, has outright prohibited short-term rentals in unincorporated areas. VanKerkhoff noted that Kane County looked at regulations passed by area municipalities, and said the proposed additions to the county code do two things, broadly: require a rental to get a license from the county’s Development and Community Services Department, and allow for fines to be assessed if there are violations of the regulations on short-term rentals. He noted that all other aspects of the county code still apply to such properties.

* Daily Southtown | Sports dome west of Brookside Marketplace moves forward; one of three planned in Tinley Park: The proposal from GK Development Properties LLC, approved last week by the Tinley Park Village Board, includes a 142,000-square-foot dome and a building that could house stores and restaurants on property where a 9-hole golf course once operated. Village Manager Pat Carr said construction on the dome could be underway in the next month. Trustee Michael Mueller said the property had been vacant for a while and that he’s happy to see the project moving forward.

* Daily Southtown | Homicide rate dropped again in south and southwest suburbs, mirroring trends in Chicago and broader Cook County: The south and southwest suburbs saw a 35% decrease in homicides in 2025 compared to 2024, according to tracking by the Daily Southtown, reflecting a continuing downward trend in recent years. The same trend is apparent in numbers for Chicago and greater Cook County, according to a preliminary analysis published by the Cook County medical examiner’s office. According to that report, there were 541 homicides in Cook County as a whole last year, down from 792 in 2024 and 850 in 2023. Last year was the first year since 2014 that the medical examiner’s office handled fewer than 600 homicides in a year, the report said.

* Crain’s | Amazon plans Walmart-style big box store in Orland Park: “We regularly test new experiences designed to make customers’ lives better and easier every day, including physical stores,” an Amazon spokesperson said in a statement. “The site in question is our planned location for a new concept that we think customers will be excited about.” Amazon also plans to sell prepared foods and have a “limited warehouse component” that will serve the store and not be a distribution center, according to village records. The store will sit on 35 acres that are currently home to a vacant restaurant.

* Patch | Burr Ridge Mayor: Jan. 6 Riot ‘Stain’ On U.S. History: But Grasso, who is running as a Republican for chairman of the DuPage County Board, did not address President Donald Trump’s handling of the riot in his post. In a social media post, Grasso noted the rioters’ violence and property damage. In reflecting on the “historic ugliness” of that day, he said, some will undoubtedly grin.

*** Downstate ***

* STLPR | Draining water from Alton sinkhole has begun: Removing the water from the sinkhole, which formed in June 2024 after a limestone mine beneath the public park, is the first step the city government and mine company must complete to eventually fill and repair the massive pit. Video of the field collapsing went viral, and the city closed the entire park and nearby golf course for more than a month. The city wanted the water to be drained so its contracted engineers could inspect the sinkhole and double-check the proposed repairs by the mine company, New Frontier Materials. It will cost $35,000 to $53,000 to remove the water, and it’s not clear who will cover the initial costs.

* WCIA | Ford, Iroquois Co.’s looking for mass transit solution after CRIS RMTD dissolution: WCIA’s partners at the Ford County Chronicle reported that the rural transportation committee that oversees Ford, Iroquois and Livington Counties met this week to discuss the matter. Officials said that while all options are still on the table, an intergovernmental agreement with Danville appears to be the most “streamlined” option. It was something Mayor Ricky Williams alluded to before that meeting. Right now, Danville Mass Transit does not have authorization to operate outside Vermilion County, but its director, Stephen White, seemed receptive to the idea.

* WSIL | $170K grant aids SIU Carbondale in fight against harmful algae blooms: “Every year millions, if not billions, of dollars in recreational and health damage are caused by these microbes,” Hamilton-Brehm said. He explained that controlling these blooms could be as simple as spraying ponds, lakes, and rivers if their research is successful. Cyanobacteria, or blue-green algae, can become harmful when they form high concentrations and produce toxins. Killing these blooms releases toxins into the water, posing a challenge for control.

* WCIA | ‘We’re incredibly grateful’: U of I board chairman reflects on Killeen’s impact ahead of his departure: Killeen said being president at the University of Illinois was, “the honor of [his] professional life.” He added, “I am proud of the way we have been able to make world-class education affordable in a historically important time for higher education.” The chairman of U of I’s Board of Trustees, Jesse Ruiz, was with Killeen on Thursday. Killeen told Ruiz that he’s conscientious enough to know he’s had a good run, and that it’s also time for new leadership and to pass the baton.

* WGLT | Peoria County sheriff urges Gov. Pritzker to revisit cashless bail: Peoria County Sheriff Chris Watkins said in a statement the SAFE-T Act has seen court-appearance failures increase, reflected in updated data for the Peoria County Jail tracking jail bookings from 2022-2025. Total jail bookings for 11 types of nonviolent offenses plus domestic battery have increased by 1,699, or nearly 28%, from 2022 to 2025, according to data provided by Watkins. The failure to appear rate has increased by 339 cases, nearly 16%. A report released Monday by the Peoria Police Department indicates shooting incidents were down 18% and gunshot homicides were down by 61% in 2025.

*** National ***

* AFL-CIO President Liz Shuler | ICE Actions Are Putting Working People in Danger: The Trump administration’s reckless Immigration and Customs Enforcement (ICE) operations are trampling on working people’s fundamental rights and freedoms: to work with dignity and raise our families without the threat of violence from our government, and to safely return home to our loved ones at the end of the day. The horrifying acts of this administration’s militarized immigration enforcement in Minneapolis, Portland, Chicago, and cities across this country are not about safety. They are about power, and they are putting innocent working people in danger.

* AP | Meta lines up massive supply of nuclear power to energize AI data centers: Meta has cut a trio of deals to power its artificial intelligence data centers, securing enough energy to light up the equivalent of about 5 million homes. The parent company of Facebook on Friday announced agreements with TerraPower, Oklo and Vistra for nuclear power for its Prometheus AI data center that is being built in New Albany, Ohio. Meta announced Prometheus, which will be a 1-gigawatt cluster spanning across multiple data center buildings, in July. It’s anticipated to come online this year.

* The Guardian | Grok turns off image generator for most users after outcry over sexualised AI imagery: The tool had been used to manipulate images of women to remove their clothes and put them in sexualised positions. The function to do so has been switched off except for paying subscribers. […] That means the vast majority of users of the platform cannot create images using Grok. Those who do have their full details and credit card information stored by X, so can be identified if the function is misused. The public @Grok account has had its image generation capabilities heavily restricted. However, there is also a separate Grok app, which does not share images publicly, on which non-paying users have reported still being able to generate sexualised imagery of women and children.

* The Guardian | No 10 condemns ‘insulting’ move by X to restrict Grok AI image tool: Asked about the change, a Downing Street spokesperson said it was unacceptable. “The move simply turns an AI feature that allows the creation of unlawful images into a premium service,” they said. “It’s not a solution. In fact, it’s insulting to victims of misogyny and sexual violence. What it does prove is that X can move swiftly when it wants to do so. You heard the prime minister yesterday. He was abundantly clear that X needs to act, and needs to act now. It is time for X to grip this issue.