Progress on the Trust’s Policy Priorities in the 2026 Illinois Legislative Session

As the Illinois General Assembly adjourned the spring 2026 legislative session on June 1st, the state closed out a consequential period marked by significant progress on the Trust’s four policy priorities: property tax sale reform, public benefits and tax credits, streamlining government grantmaking and procurement to community partners, and protecting the nonprofit sector to meet our strategic goals. The $56 billion FY27 budget, paired with new revenue streams and a slate of policy reforms, reflects growing momentum to address long-standing inequities across Illinois, while also underscoring the work that remains. For the Trust, the outcomes of this session represent meaningful alignment between state policy and our strategic priorities, alongside new opportunities to deepen advocacy, implementation of partnerships, and coalition leadership in the years ahead.

This session also demonstrated what sustained advocacy can achieve. A major milestone came in property tax sale reform. In response to the U.S. Supreme Court’s Tyler v. Hennepin decision, Illinois enacted reforms to ensure that property owners are treated more equitably in the tax sale process. The new law establishes judicial auctions to determine fair market value, returns surplus equity to owners after debts are paid, and extends redemption timelines to help prevent foreclosure. While these changes represent a major breakthrough, advocates are clear that further action is needed to prevent property loss before it occurs, an effort that will continue beyond this session. Torrence Gardner, the Trust’s Policy and Advocacy Manager, who advocated for the reform in Springfield says, “The legislation is a major step, not a finish line. More reforms are needed to truly protect homeowners from tax foreclosure and from losing what is often a family’s most significant asset.”

Lawmakers also took important steps to strengthen economic stability through public benefits and tax credits. The FY27 budget includes $70 million for the new Families Receiving Emergency Support for Hunger (FRESH) program, which will provide one-time payments to households losing SNAP benefits due to new work requirements. The Child Tax Credit remains funded at $100 million, preserving an expanded benefit for eligible families, while the newly established NEST (Newborn Equity Support Transfer) program — designed to support mothers and newborn children – was established without dedicated funding. This program is part of a broader effort authorizing the Illinois Department of Human Services to pilot guaranteed income programs like NEST, making Illinois only the second state to take a similar step. Together, these developments reflect both progress and unfinished work. While lawmakers preserved key supports such as the Child Tax Credit and created new tools like FRESH and NEST, the absence of dedicated funding for NEST highlights the need for continued investment and partnership to ensure these programs can deliver meaningful support to Illinois families.

Progress was also made in improving how the state partners with nonprofit organizations. After years of advocacy, legislation to streamline government grantmaking and procurement will establish clearer payment timelines, expand access to advance funding, and increase transparency and accountability. Complementing these reforms, the passage of Legacy Impact through Fair Transfers (LIFT) legislation will reduce delays in distributing charitable gifts and strengthen accountability within financial institutions. These changes are expected to improve the reliability and efficiency of funding flows, enabling nonprofit organizations to focus more fully on delivering services in communities rather than navigating administrative barriers.

Beyond these priority areas, the broader legislative landscape reflected both ambition and complexity. The state enacted new revenue sources, including taxes on digital advertising and cryptocurrency, while increasing investments in education and safety-net hospitals. At the same time, major proposals like the BUILD Illinois housing package stalled, leaving critical housing challenges unresolved. Taken together, the 2026 session laid important groundwork for long-term policy change. As attention turns to the fall veto session and future legislative cycles, the Trust and our partners will continue advancing solutions that expand opportunity across Illinois.