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Illinois’ budget deficit could reach $5.3 billion by 2031 due to federal policy changes and rising costs.
Illinois faces a growing budget deficit, projected at $267 million for fiscal year 2026 and potentially rising to $5.3 billion by 2031, due to federal tax changes, increased state costs for SNAP and Medicaid, and grant reductions.
Federal policies are reducing state revenue by up to $830 million and requiring Illinois to cover more SNAP and Medicaid expenses, with potential costs of $705 million for SNAP and $1.7 billion to $4.5 billion for Medicaid.
The state is exploring decoupling from federal tax rules, limiting spending, and using a $100 million reserve to address shortfalls, but future funding for new programs is expected to be severely constrained.
El déficit presupuestario de Illinois podría alcanzar los $5.3 mil millones para el 2031 debido a los cambios en la política federal y al aumento de los costos.