Electronic Summer 2025 | Issue 63

State Legislative Update

By: Mark Peysakhovich, IPS Legislative Consultant

2025 Illinois Legislative Session Wraps Up in Springfield

The Illinois General Assembly concluded its 2025 legislation session on the early morning of Sunday, June 1, 2025. Altogether, the legislature passed approximately 432 bills out of a total of 6,747 that have been introduced so far this year in both Houses of the legislature. As far as IPS’ agenda is concerned, the fact that relatively few bills passed cuts both ways. To demonstrate the point, let’s look again at several proposals which I mentioned in my Mind Matters article earlier this spring.

For example, we were disappointed that several key measures that would have improved access to behavioral and mental healthcare, helped control the cost of medications, and limited insurance companies’ ability to delay and deny care failed to pass this session. At the same time, we were pleased that several “scope creep” proposals IPS opposed, including one expanding psychologist prescribing authority and another allowing physician assistants to practice without physician oversight, were also stopped.

In addition to the usual distractions the General Assembly faces every session, the profound uncertainty about what’s coming next from the White House and the federal government affected every major decision made this year. Accordingly, legislators wrote the FY26 budget (coming in at approximately 5,000 pages) within this context. The budget gives the Governor emergency spending powers and establishes a new contingency fund, the Budget Reserve for Immediate Disbursements and Governmental Emergencies (BRIDGE Fund), with $100 million in reserves. 

State officials continue to be particularly concerned about federal healthcare funding. According to budget calculations, 60 percent of Illinois’ almost-$34 billion annual Medicaid budget comes from the federal government. However, even in this tough budget environment, several positive investments were made. For example, for the first time, a slight increase in telecommunications taxes will provide sustainable, dedicated revenue sources for the state’s 988 crisis line. In addition, other notable investments include $120 million for safety net hospitals and $263 million to expand affordable housing through the Home Illinois program. Progress was also made on compensating frontline healthcare workers who serve people with disabilities. They will receive an $0.80 increase in hourly pay and workers in the Community Care Program also will see a $0.75/hour pay increase.

The General Assembly is expected to meet again in Veto Session, which usually takes place every fall. However, this year, things are less settled than usual as legislative leaders and the Governor have warned that an emergency summer session may be needed to respond to developments coming out of Washington, D.C. Stay tuned!