The Illinois General Assembly passed its Fiscal Year (FY) 2025 budget, including $53.070 billion designated for the general fund, resulting in a $211 million surplus. The budget reflects allocations to various categories, emphasizing human services (20.5%), PreK-12 Education (20.2%), Pensions (18.9%), Healthcare (17.5%), Government Services (8.6%), Higher Education (4.8%), Public Safety (4.7%), Statutory Transfers (4.1%), Economic Development (0.4%), and Environment and Culture (0.2%).
*General fund expenditures fund the government’s ability to provide services for its residents.
HC3 and its members are committed to reforming the city’s health care ecosystem through three categories:
Addressing health and social disparities
Curating economic development
Catalyzing health system transformation
In terms of addressing health and social disparities, the budget provides:
Strategic plan to address health and social disparities across Illinois by expanding access to essential services and resources for underserved and vulnerable populations. The plan includes increased support for childcare assistance, career and technical education for underserved students, and literacy initiatives to promote educational equity. It also emphasizes the importance of supporting minority graduate students, expanding housing and homelessness services, and providing targeted assistance to at-risk youth. Additionally, the plan focuses on improving health outcomes by supporting immigrant health benefits, eliminating medical debts, and enhancing resources for pediatric mental health. Through these initiatives, the state aims to create a more equitable and inclusive environment where all residents can access the support and opportunities they need to thrive.
An additional $36.5 million is being invested to support the anticipated increase in participation in the Child Care Assistance Program (CCAP).
A $10.2 million increase will expand access to Career and Technical Education Programs for underserved students, using a revised, equity-based formula.
$3 million has been allocated for the implementation of the State Literacy Plan to provide tools, support, and resources for aligning educator training and student instruction with the Illinois Comprehensive Literacy Plan.
$2 million will continue funding the Diversifying Higher Education Faculty in Illinois (DFI) program, which provides holistic support for minority graduate students, in addition to their fellowship stipend.
$35 million will be used to sustain court-based rental assistance.
Over $181 million is allocated to support unhoused populations seeking shelter and services, including $52.4 million for the Emergency and Transitional Housing Program.
$25 million will fund Rapid ReHousing services, providing short-term rental assistance and targeted support for up to two years for households in need.
$42 million will maintain funding for current supportive housing for individuals.
Over $33 million will support street outreach, medical respite, re-entry services, access to legal counsel, and other shelter diversion supports.
A $5 million increase to expand and continue the Department of Human Services’ Home Visiting Program.
$1 million allocated to the Department of Human Services (DHS) for acquiring and distributing diapers.
$1 million to the Department of Commerce and Economic Opportunity (DCEO) to enhance the State’s ability to provide safe and accessible pregnancy support.
$31.3 million for the expansion of Comprehensive Community-Based Youth Services (CCBYS), which provides 24/7 services such as assessments, crisis stabilization, and housing to youth at risk of involvement in the child welfare or juvenile justice systems.
$2 million for Pediatric Mental Health Training to raise community awareness of children’s mental health issues and available resources, ensuring pediatricians have the necessary information and resources to assist families.
$629 million allocated for the Health Benefits for Immigrant Adults and Health Benefits for Immigrant Seniors programs.
$10 million to eliminate medical debts, providing an estimated $1 billion in relief for over 300,000 Illinois households.
In terms of addressing economic development, the budget provides:
Targeted funding approach designed to stimulate economic growth across Illinois by investing in key areas such as business development, workforce training, and industry innovation. Significant resources are allocated to attract and expand businesses, enhance workforce capabilities through specialized programs, and support the transition to clean energy industries. Additionally, the strategy includes investments in rural economic development, food security, and the state's tourism sector, all aimed at creating a more resilient and diversified economy. This comprehensive approach ensures that Illinois remains competitive while fostering sustainable economic growth and improving the quality of life for its residents.
$20 million in capital funding to sustain the Illinois Works Construction Pre-apprenticeship Program.
$10 million for the Illinois Grocery Initiative to combat food insecurity in food deserts across the state.
$30 million to the Fast-Track Workforce program, aimed at supporting employers with employee screening, recruitment, and job training development.
$2.5 million in funding for the Office of Outdoor Recreation to boost tourism at various destinations and enhance Illinois' outdoor recreation economy.
$2 million in funding for rural economic development, focused on connecting communities and improving access to state and federal aid through outreach and technical assistance from rural navigators.
$10 million to continue the Clean Energy Career and Technical Education pilot initiative, assisting high schools in developing curriculum and programs for electric vehicle manufacturing technical education.
$25 million for competitive business development capital grants to expand, rehabilitate, or relocate private businesses to Illinois.
Approximately $200 million is being invested in Early Childhood Workforce Compensation Contracts, aimed at stabilizing operational funding and enhancing quality within the childcare system. This contract funding model is based on recommendations from the Early Childhood Funding Commission.
$2.6 billion in General Funds for services supporting people with developmental disabilities (DD), including a $1/hour rate increase for Direct Support Professionals, effective January 1, 2025, in compliance with the Ligas consent decree.
$20 million in continued funding for the Pipeline for the Advancement of the Healthcare (PATH) Workforce Program to train new health care professionals, including nurses, medical assistants, laboratory technicians, and emergency medical technicians.
In terms of addressing health system transformation, the budget provides:
A comprehensive plan to transform Illinois' health system by enhancing access to care, improving mental health services, and addressing critical public health challenges. Key initiatives include expanding Medicaid coverage, particularly through increased support for safety net hospitals, ensuring that essential services reach vulnerable populations. The plan also prioritizes mental health care, reproductive health services, and maternal health, emphasizing a community-centered approach to care. Additionally, the creation of a streamlined service access portal for youth, the establishment of the new Department of Early Childhood, and the expansion of early childhood education initiatives are central to this transformation, aiming to improve health outcomes and support the well-being of all Illinois residents.
State-Based Marketplace - $27.5 million to implement the new state system
$7.5 million – Department of Healthcare and Family Services for additional headcount and navigator grants
$19 million increase to support mental health care treatment, 9-8-8 hotline, and support of the Williams and Colbert consent decrees.
$497.9 million increase to annualize Medicaid program rate increases and
changes effective mid-FY 24 plus additional funding to reflect the rate increases in SB 3268
$70 million for a new Medicaid tiered safety net hospital add-on
$4 million to create a community-centered reproductive health action plan
$2 million for grants for freestanding reproductive health care clinics and maintains $18 million to support existing reproductive health initiatives
$1.5 million for BEACON: A Service Access Portal for Illinois Youth. In partnership with Google Public Sector, BEACON will use advanced technology to create a streamlined and accessible portal for Illinois youth and their advocates to navigate behavioral and mental health resources.
$13 million was allocated for operational funding of the new Department of Early Childhood, which will expand upon Executive Order 2023-09. The department will spend the fiscal year 2025 establishing its operational infrastructure before integrating early childhood education initiatives from different state government areas.
An additional $75 million is earmarked for the Early Childhood Block Grant at the Illinois State Board of Education (ISBE) to further the Smart Start Illinois plan by increasing access to support services and high-quality preschool for families with children up to age three.
$4.4 million was allocated to the Department of Public Health (DPH) to assess the State’s maternal mortality rate and develop an action plan focused on reproductive care through community-based providers. This includes support for full-spectrum care birth centers and community-based reproductive health care providers within the communities they serve.
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