Gov. JB Pritzker of Illinois signed into law the state’s $53.1 billion budget for Fiscal Year 2025, which includes a few noteworthy adjustments, such as the elimination of the state's 1% grocery tax and the introduction of a new Child Tax Credit. As reported by CBS Chicago, the grocery tax is set to be repealed starting Jan. 1, 2026, making Illinois the latest state to remove what Pritzker labels as a regressive tax that disproportionately affects low-income residents.
"Even with inflation cooling off, every dollar counts, so I'm proud we're doing what we can to make trips to the grocery store a little easier," Pritzker said, emphasizing that the removal of the tax was a step toward relieving Illinois families of financial burdens, as per CBS Chicago.
However, this change has sparked concern among local government officials who rely on this tax revenue for essential services. As NBC Chicago elaborates, municipalities like Orland Park may be facing a significant shortfall, with Mayor Keith Pekau arguing that the tax cut could result in a $2.5 million revenue loss for the community.
Addressing another pressing issue, the budget allocates over $180 million to help manage the influx of asylum seekers into Illinois. "We didn’t ask for this manufactured crisis, but we must deal with it all the same," Pritzker said, indicating that the funds will be used to eventually move people into permanent residences and to quickly transition shelters back into publicly accessible facilities. This move comes as a response to nearly 43,000 asylum seekers arriving in the state since the inception of the busing program from border states, as stated by NBC Chicago.
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