Illinois Lawmakers Address Bears Stadium, Pension Reforms, and Tax Issues
As Illinois lawmakers prepare for the second half of the 104th General Assembly, several pressing issues are on the table. The session, which begins on January 13, 2026, is expected to address a progressive tax, increased higher education spending, pension reforms related to Tier 2 pensions, energy policies, data centers, and the Chicago Bears stadium situation.
Key Legislative Issues for Illinois Lawmakers
While the second year of a legislative session usually sees fewer bills filed, the current political landscape indicates that significant decisions could arise, potentially impacting taxpayers. Here’s an overview of the key issues to watch:
Progressive Tax Discussion
Illinois has historically maintained a flat income tax system. In 2020, lawmakers attempted to amend the state constitution to introduce a graduated-rate tax structure. This proposal, which aimed to increase tax burdens on retirees, family farms, and small businesses, was rejected by voters. Nonetheless, during the veto session in 2025, a new bill was introduced to revive the amendment effort. If successful, this change would allow lawmakers to impose tax increases on specific income groups.
Higher Education Spending Concerns
Illinois ranked first in spending per student on higher education in 2024, exceeding the national average by more than double. Factors contributing to this high expenditure include declining enrollment rates, escalating pension obligations, and administrative inefficiencies. Lawmakers are urged to adopt a statewide strategy to address issues surrounding university funding and workforce training.
Pension Reforms for Tier 2 Retirees
A recent proposal to enhance Tier 2 pension benefits gained traction during the veto session. This initiative, projected to cost Illinois $52.7 billion, aims to improve benefits for retirees employed after 2010. Government unions are expected to advocate for increased benefits as the new session unfolds.
Energy Policies and Data Centers
Despite lifting a moratorium on nuclear energy, Illinois faces an imminent power shortage. Governor J.B. Pritzker has promoted a clean energy bill enacted in 2021 aimed at shifting away from coal and natural gas by 2050. However, fulfilling energy demands for emerging data centers may necessitate continued reliance on these sources. Balancing sustainability and energy reliability remains a pressing challenge for state policymakers.
Chicago Bears Stadium Developments
The Chicago Bears recently acquired the former Arlington Park Racetrack for $197.2 million, with ambitions for a new stadium. The current lease at Soldier Field extends until 2033, albeit with penalties for early termination. A proposed bill would require sports teams to achieve a winning percentage to qualify for taxpayer funding for new developments. Bears President and CEO Kevin Warren has indicated a broader search for potential stadium locations, reflecting the complexities of securing state support.
Legislative Trends and Expectations
History shows that the Illinois General Assembly tends to pass fewer bills in the second year of each session. Since 2003, the average number of bills filed drops from 6,364 in the first year to about 3,445 in the second year. Similarly, the number of bills passed decreases from 633 to around 451. With elections approaching in November, lawmakers may exercise caution regarding legislative actions.
As the Illinois legislature gears up for its upcoming session, constituents can anticipate a heated political environment surrounding tax issues, education funding, pension reforms, energy policies, and stadium developments. With these significant debates ahead, taxpayers will be closely observing the lawmakers’ decisions and their implications for the future.
