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Crain’s: Trump’s $61.5 billion hit to Illinois budget over coming decade

Tuesday, Feb 24, 2026 - Posted by Rich Miller

* Crain’s took a look at the numbers

For Illinois, the strong-arm approach by Trump has meant regular threats to a range of federal funding streams, which add up to a minimum of $61.5 billion over the coming decade, according to a review by Crain’s of both threats to cut funding and actual cuts implemented under the Trump administration.

Although cuts to Medicaid by the One Big Beautiful Bill Act passed last July comprise the lion’s share of the losses — approximately $48 billion over the next decade — there are also several other instances of the Trump administration pulling or threatening to pull billions more from Illinois and Chicago.

For instance, $2.1 billion in federal funds intended for the Chicago Transit Authority to expand the Red Line have been in limbo for about a year now, another $2.7 billion in federal funding for the city of Chicago has been in dispute for months due to Trump’s attacks on “sanctuary cities,” and Trump has tried to cut $1 billion from Illinois that was intended to help needy families, food banks and school lunches for children.

That’s just the tip of the iceberg: There have been scores of other threats Trump and his administration have made against Illinois and Chicago since his second term began over funding for energy projects, education programs, health care for transgender patients and more.

* Along those same lines, this is from the governor’s State of the State/Budget address last week

$8.4 billion dollars. That is how much the Trump administration has cost the people of Illinois.

Alongside many other states, Illinois is fighting more than 50 cases in court where the federal government is illegally confiscating money that has already been promised and appropriated by the Congress to the people of Illinois.

These are not handouts. These are dollars that real Illinoisans paid in federal taxes and that have been constitutionally approved by our elected Democratic and Republican representatives in Washington.

I told subscribers about that last week, but I haven’t seen much, if any coverage on his claim. Maybe I missed it.

* The governor’s office included this walk-down in its address package

President Trump is costing Illinois an estimated $8.4 billion through Trump’s second term (FY29), according to a Governor’s Office of Management and Budget (GOMB) budget compilation. No state in America can just backfill billions in federal funding. Sticking to the path of fiscal responsibility will not be easy, but Illinois will get it done.

Here are the four main ways Trump is costing the people of Illinois:

1. Shifting longstanding federal duties and costs to the states. Trump changed longstanding SNAP federal-state cost-sharing arrangements, in an attempt to push working families and seniors off these programs.

Under Trump’s budget bill, Illinois taxpayers could have to cover as much as $1.2 billion to keep Illinoisans covered by the SNAP food assistance program through fiscal year 2029. Additionally, the state share of SNAP administrative costs is increasing from 50 percent to 75 percent, resulting in an estimated $80 million annual cost increase for Illinois just to maintain the same level of service.

    • $1.45 billion – Total lost federal funding for SNAP through FY29

Similarly, Illinois relies on hospital and managed care organization (MCO) provider taxes to draw down federal Medicaid matching funds. Trump’s bill gradually reduces the maximum allowable provider tax rate from 6.0 percent to 3.5 percent by FY2032, significantly limiting the state’s ability to finance Medicaid.

    • $1.06 billion – Total amount of Illinois funding needed to replace lost provider taxes to maintain federal support for the Medicaid program through FY29

2. Tax cuts for big corporations reduce revenue for states. Trump’s budget bill included tax breaks for the wealthy and big corporations, which in turn is slashing revenue for Illinois. These reductions stem primarily from changes enacted under Trump’s budget bill, including the corporate tax provisions that lower the federal taxable base Illinois is “coupled” to. While the state acted to decouple from some of these corporate taxes, not all of them were. As a result, Illinois faces:

    • $1.47 billion – Total lost state tax revenue from federal tax changes through FY29

3. Tariffs are driving up prices. Reckless tariffs raised costs on construction materials, equipment, and technology—expenses Illinois can’t avoid. Examples include:

    • The Illinois Department of Transportation (IDOT) estimates $249M– $585M in higher costs over two years on projects
    • The Illinois Capital Development Board (CDB) estimates $3.6M annually in increased construction costs
    • The Illinois Department of Innovation and Technology estimates a potential $2 million annual impact on technology costs

4. Frozen, canceled, and unlawfully restricted federal funds hinder Illinois from receiving what it is owed. The Trump administration is costing Illinois as federal funds hang in the balance. Congress has authorized federal grants for health care, education, and public safety—grants that the federal government is obligated to deliver to states. But Trump has outright cut, frozen, or forced the state to fight for what Illinois is owed through litigation—putting benefits and services in jeopardy while also forcing Illinois to spend more on legal fees.

Examples include:

    Social Services Programs, including Child Care, through Temporary Assistance for Needy Families (TANF), Child Care Development Fund (CCDF), and Social Services Block Grants (SSBG) – ~$1.04B per year
    • Public Health COVID Funds – $100M
    • Solar for All – $144M
    • Criminal Justice Grants – $50M
    • EPA Charging Infrastructure – $100M
    • Local Food for Schools – $26M

Discuss.

       

5 Comments »
  1. - Potter Mom - Tuesday, Feb 24, 26 @ 1:44 pm:

    It looks like it is time to seriously consider HJR18, and HJRCA16, and start moving toward a change to the constitution to allow the needed revenues to be raised fairly.


  2. - Candy Dogood - Tuesday, Feb 24, 26 @ 1:56 pm:

    ===Potter Mom - Tuesday, Feb 24, 26 @ 1:44 pm:===

    Support.

    In the meantime, might want to throw a cap on the subtraction of federally taxed retirement.


  3. - Sir Reel - Tuesday, Feb 24, 26 @ 2:12 pm:

    This is particularly galling since Illinois is a donor state, sending more money in Federal taxes to Washington than it receives in Federal funding.


  4. - Dotnonymous x - Tuesday, Feb 24, 26 @ 2:47 pm:

    Q. How long before the Poor & Hungry revolt?

    A. History holds the answer.


  5. - Dotnonymous x - Tuesday, Feb 24, 26 @ 2:49 pm:

    The question seldom heard?…is there a better system of distibuting our collective wealth?


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