* Capitol News Illinois…

Illinois hospitals stand to lose upwards of $4 billion in revenue over the next several years due to impending changes in Medicaid rules that limit states’ ability to direct higher reimbursement payments to facilities that serve the most vulnerable populations.

That’s according to a recent study by KFF, a nonpartisan health policy think tank, as well as estimates by the Illinois Health and Hospital Association.

And unless Congress acts to reverse those policies before they take full effect, IHA officials warn, roughly half the hospitals in Illinois could be forced to reduce staff, cut back on services or close altogether.

“The governor’s people have consistently said that they don’t have a printing press over in the Capitol, and that they’re not going to be able to fill in this revenue,” David Gross, IHA’s senior vice president for government relations, said in an interview. “So it’s a concern that some of the estimates that have been undertaken in Washington assume that the state’s going to pick up the costs of these cuts.”

*** Statehouse News ***

* Center Square | Ammons wants case delayed due to general election duties: In a motion filed Aug. 24, J. Steven Beckett, lawyer for Aaron Ammons, wrote that the scheduled dates “directly conflict with Defendant Ammons’s responsibilities as an elected official serving the citizens of Champaign County.” Lawyers for the state representative joined in asking the court to reschedule in another filing Aug. 28, also citing Aaron’s duty as county clerk and requesting “any other relief the Court deems appropriate.”

* Press release | UAW Endorses JB Pritzker for Governor of Illinois: The UAW has officially endorsed JB Pritzker for Governor of Illinois and is committed to electing a working-class champion who will stand up for the nearly 44,000 active and retired UAW members across the state. Governor Pritzker has a proven track record of standing with working people, protecting workers’ rights, and taking on corporate interests—including his support for the Illinois Workers’ Rights Amendment and the Worker Freedom of Speech Act.

*** Chicago ***

* WTTW | Chicago Faces $882M Budget Gap in 2027, as Johnson Touts Smaller Than Expected Election Year Shortfall: Mayor Brandon Johnson said Thursday Chicago faces a projected $882.4 million budget shortfall in the 2027 fiscal year, a smaller than expected gap during an election year. That is more than 23% smaller than the $1.15 billion deficit that confronted city officials a year ago. Debate over how to fill that gap led to an intense confrontation between the mayor and a majority of the Chicago City Council, which approved a spending plan opposed by Johnson.

* Sun-Times | Mayor Johnson projects $882M deficit, vows to not balance budget ‘on backs of working people’: Johnson, who did not directly rule out a property tax hike Thursday, will need to find efficiencies and revenue as he contends with an emboldened Council opposition that has rejected his boldest progressive pushes so far. Johnson said the budget gap is driven in part by $70 million more in the city’s bond payments, $90 million more in pension obligations, cost-of-living adjustments for union workers, and commodity price hikes linked to the U.S. war against Iran, including $32 million more in fuel and energy costs.

* A City That Works | Grading Chicago’s new transit leadership: Chicago Mayor Brandon Johnson: D+. The mayor is fond of school analogies, so let’s put it this way: If Preckwinkle is the student who turned in her homework early and crushed the extra credit questions, Johnson is the student who turned in the same homework he submitted last year when he flunked the class. Six of the mayor’s eight appointments previously served on one of the transit boards, which means this is mostly a copy-paste job from the poorly managed prior regime. That includes Lester Barclay, the CTA board chair for the last five years who rarely uses the system and opposed key parts of the NITA reforms.

* Block Club | Downtown Bridge That Was Stuck For Hours Has History Of Problems, Records Show: In addition to the bridge’s heat-related malfunction, its latest inspection from 2024 shows the structure was already showing signs of significant deterioration. The inspection, published by the Illinois Department of Transportation, classified the bridge as structurally deficient, rating its superstructure in poor condition and giving the bridge a structural valuation of 3, calling it “intolerable, high priority for correction.”

* Crain’s | The strange math of Chicago’s condo market now: Ask for less, get more: The owner of a condo on Pine Grove Avenue in Lakeview hoped to sell her one-bedroom space in the $250,000s, and was chagrined when her real estate agent suggested pricing it in the high $220,000s. “I want you to trust me,” the agent, Madeline Peterson of Engel & Voelkers Chicago, coached the seller, confident from experience in the city’s fast-paced, multiple-offer condo market that it would deliver a number closer to what the seller wanted. The condo hit the market in late April at $228,000 and “my phone blew up,” Peterson says.

* WTTW | Chicago Public Schools Canceling or Moving All Outdoor Activities Inside Thursday Amid Dangerous Heat: The National Weather Service issued an Extreme Heat Warning for Cook County on Thursday morning, though that was canceled before noon, with dangerous heat and humidity expected. Heat indices were expected to reach up to 105 degrees, the weather service said. CPS said because of the extreme heat, all outdoor athletics games are postponed, and all practices will either be canceled or moved indoors. Regular programming may resume on Sept. 4, pending any updates.

* Sun-Times | Brandon Johnson wants to be an arts mayor. How does Chicago’s spending stack up?: Across the country’s five largest cities (New York, Los Angeles, Chicago, Houston and Phoenix), Chicago was the only one to cut the funding for its local arts agency during its most recent budget cycle. And while its spending dwarfs that of the larger Los Angeles, and trails only behind New York in per capita arts dollars, the pressure is mounting on city leaders to do more.

*** Cook County and Suburbs ***

* Lake & McHenry County Scanner | Lawmaker says Grayslake mega data center ‘should not proceed’ without answers on power, water and noise: Illinois State Representative Daniel Didech (D-Buffalo Grove) said he has been “closely monitoring” and learning about the proposed T5 @ Chicago IV data center campus in Grayslake. Didech has met with local municipal leaders, T5, other government officials and community members in an attempt to understand the project and how it may affect his constituents, particularly neighborhoods in Mundelein that would be among the most impacted areas. “Based on these conversations, it is clear that residents have legitimate questions about this project’s effects on our community, and I share many of the concerns that have been expressed,” Didech said.

* Daily Herald | West Chicago officer being investigated over Flock camera use: West Chicago has put a police officer on administrative leave while it and the DuPage County state’s attorney’s office investigate allegations involving potential misuse of a Flock automated license plate recognition system. The officer may have used the system for an unauthorized purpose between late 2024 and early 2025, according to the city. Officials announced the city is also conducting a broader audit of the use of Flock and other investigative software and technology, and that it recently added early-detection auditing tools.

* Daily Herald | Barrington parents ask District 220 to reduce students’ screen time: The parents are asking the district to demonstrate how and why technology is being used, establish appropriate guardrails, and ensure educators’ decisions are supported by research and data. District 220 Superintendent Craig Winkelman said educators already are addressing some of the concerns, including with a policy change this year that keeps kindergarten and first-grade students from taking school-issued iPads home, unless teachers require it for an assignment.

* Naperville Sun | Happy hour ban on drink specials lifted in Naperville: The ban on happy hour drink specials in Naperville, in place for at least a decade, has been lifted by the Naperville City Council, allowing local restaurants and bars to offer special drink promotions. Naperville will adopt the guidelines already in place at the state level for happy hours, but with a few caveats. First, discounted drinks must end at 7 p.m. instead of the state’s cutoff time of 10 p.m., as recommended by the Naperville Liquor Commission.

*** Downstate ***

* WGLT | Expert says data centers contribute to rising energy costs: During a presentation Wednesday at the Bloomington Public Library, residents heard about the reasons behind the rising costs of energy from Nick Hylla, executive director of the Midwest Renewable Energy Association [MREA]. The evening was co-sponsored by the Ecology Action Center.

* WAND | Eastern Illinois University brings back Voluntary Separation Program: President of EIU’s UPI Union Group Kai Hung explained why the university brought back the program for another year. “The stated goal of the program from the university is to try to have turnover in personnel in ways that can save money for the university,” Hung said. The program allows staff members to take an incentive to leave their positions in exchange for a one-time payment worth 20 weeks of their salary. But while this can help the university meet its financial needs, it can also impact students. “There will be fewer options in classes, fewer classes of the same kind at different times — meaning it will be more difficult for students to build their schedules,” Hung said. “There will be fewer higher-level electives, fewer student services available on campus, and more restricted hours of service.”

* WMBD | Central Illinois Facebook groups organize against Flock cameras: Brad Bell, a resident of the Twin Cities, helped start the group Shut the Flock Off Blono after he began seeing locals online complaining about these cameras. A small group of 20 to 30 people began meeting in a church to draft FOIA requests and other campaign publications opposing Flock, which has now appeared in small businesses across Bloomington-Normal. He said he understands these cameras help fight crime, but also, “if we all wore cameras all over us all the time, we could solve every crime. But would that be worth it?”

* WCBU | East Peoria moves ahead with $2.6M final phase to install turf ball fields: Culminating a phased five-year effort to install turf at all 10 outdoor baseball and softball fields, the East Peoria City Council on Tuesday unanimously approved a $2.6 million contract with ATG Sports for Fields 5 and 6. “This is the best year we’ve ever had gross revenue-wise, and a lot of that has to do with the turf,” said Kory Brown, the city’s director of tourism and special events. “So it’s paying dividends.”

*** National ***

* CNN | States can regulate prediction markets as gambling, federal appeals court rules: The judges also said it was “disingenuous” for Kalshi to argue in court that its products weren’t sports-betting when it previously used that phrasing in marketing materials. […] Kalshi condemned the ruling Friday and said it would pursue appeals.

* Politico | How DHS created a workaround to turn Guard members into immigration officers: Officials issued the confidential memo to state attorneys general in April 2025 authorizing Guard troops to “perform immigration functions” outside of their home state, including arresting unauthorized immigrants, although it is not clear whether troops did so.