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Illinois lawmakers passed a $56 billion state budget early Monday morning, the largest in state history, with new tax increases on social media companies, cryptocurrency, and fantasy sports. The budget addresses a significant revenue gap and includes increased funding for food assistance programs in the wake of federal cuts.
Quick Facts
- Budget size: $56 billion for fiscal year 2027
- Passed early Monday morning, June 1, 2026
- Largest state budget in Illinois history
- New taxes target social media, crypto, and fantasy sports
New Revenue Streams From Tech and Digital Sectors
The Illinois budget introduces taxes on social media companies, cryptocurrency transactions, and prediction markets — reflecting a shift toward taxing digital businesses. These revenue sources were proposed by Governor JB Pritzker in February as part of his effort to address a projected $2.2 billion budget gap. The new taxes are designed to generate revenue without relying solely on traditional income and sales taxes.
Food Assistance and Federal Uncertainty
Beyond the new levies, the $56 billion budget prioritizes increased funding for food assistance programs. This expansion responds to recent cuts to federal benefits that left many Illinois residents facing reduced support. The budget also suspends the scheduled increase to the state’s gas tax, helping contain costs for drivers.
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Path to Passage After Legislative Delays
The budget came after an extended negotiation period during the spring legislative session. Lawmakers and the governor had to reconcile competing priorities, including proposals to reduce local governments’ share of income tax revenue — a change the final budget rejected. The passage of the fiscal year 2027 budget maintains state operations and sets spending priorities as economic uncertainties from federal policy changes continue to affect state finances.
Sources
- Capitol News Illinois — Budget details, tax provisions, session timeline
- Chicago Sun-Times — Food assistance funding, federal cuts context
- WGN NewsYou — Budget size and historic context
- ABC7 Chicago — Tax details on social media, crypto, fantasy sports
- Chicago Tribune — Governor reaction and budget passage
