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Illinois faces up to $10B in federal funding losses by 2027, risking a $2.2B deficit despite efforts to limit tax revenue losses.
Illinois faces a challenging fiscal outlook for 2027, with a new budget report warning of up to $10 billion in federal funding losses from Medicaid, SNAP, and child care cuts, driven by policy changes under the Trump administration.
Federal receipts have dropped 8% in FY26, including a 36% decline in January, while a $1 billion child care funding freeze looms pending court action.
Despite state efforts to reduce tax revenue losses to $587 million, a projected $2.2 billion structural deficit remains, forcing agencies to hold back $482 million in spending.
The report signals a cautious budget approach, with new programs unlikely, as Illinois must balance its budget annually amid growing uncertainty.
Illinois enfrenta hasta $ 10B en pérdidas de financiamiento federal para 2027, arriesgando un déficit de $ 2.2B a pesar de los esfuerzos para limitar las pérdidas de ingresos fiscales.