Illinois Gov. JB Pritzker (D) ordered state agencies to identify 4% in spending cuts after warning of reduced federal support and declining state revenue. The executive order, signed Tuesday, gives agencies 30 days to submit reduction plans, with the governor cautioning that deeper cuts may follow.
Pritzker blamed the state’s fiscal strain on Donald Trump and congressional Republicans, citing the recently passed “One Big Beautiful Bill Act” that altered the federal tax code. Because Illinois’s tax system mirrors federal rules, the state anticipates revenue losses tied to tax breaks for corporations and high-income earners.
He also pointed to the impact of Trump’s shifting tariff policies on China, which he said hurt Illinois farmers and businesses. In July, Pritzker directed seven state agencies to review the economic damage from tariffs and recommend ways to offset losses.
“This is a beginning of dealing with what we think could be a very severe challenge for the state budget this year,” Pritzker said, noting the potential for recessionary impacts similar to neighboring states.
Illinois lawmakers recently passed a $55.1 billion budget, but Pritzker’s order could pause up to $2.2 billion in planned spending. Republicans criticized the move, with House Minority Leader Tony McCombie calling it “just another attempt to poke the Trump bear.”
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