Illinois and many other states are in a battle with the federal government about the role data plays in determining investment in communities to address public challenges. The newly passed 2026 state budget attempts to minimize the impacts of federal funding cuts that are designed to reduce means-tested and data-driven budget allocations that address needs across Illinois, particularly in Black communities.
The “federal uncertainty” often described by lawmakers refers to the new administration’s attempt to delegitimize data-informed decision making. Reducing the staff that collect and analyze outcomes data, cancelling research grants that inform public spending and capping means-tested programs to reduce taxes are all choices made to ignore the needs of residents in need. Most of the areas targeted for cuts, like education and health care, have a disproportionately negative impact on Black communities.
While Illinois has done a lot to address uncertainty in the new budget, it is limited in its ability to overcome federal cutbacks. The state does not have the financial resources to address cuts to programs like SNAP (Supplemental Nutrition Assistance Program) that provides critical food benefits for approximately 2 million Illinois residents, disproportionately supporting Black residents. To maintain existing benefits, $1.2 billion in new state funding is needed.
Illinois is also facing cuts to education as the federal government moves from formula-driven funding for special education to consolidate grant funding designed to cap and reduce funding. The federal budget passed by the House, the so-called “skinny” budget for Fiscal Year 2026, included more than $4.5 billion in cuts to K-12 funding and the elimination of Preschool Development grants that are described as pushing DEI practices into early childhood. Pell Grants supporting college students with the greatest financial need are also on the federal chopping block.
The federal government is targeting budget items that are viewed to directly address the needs of Black residents.
But Illinois is fighting back.
Illinois increased evidence-based funding for K-12 education with an additional $307 million even in the midst of budget pressures, though this was a reduction from the governor’s request of $350 million. Investment in early childhood was also bolstered with an additional $85 million allocated to support the Child Care Assistance Program. An additional $90 million was allocated for increase in pay for child care workers, and the Illinois Department of Early Childhood received a $7.5 million increase for operations, investments that can begin to address barriers to early child education and services to Black families.
Illinois increased by $34 million funding for targeted public safety and community-based violence prevention, even in the midst of the cancellation of several grants from the U.S. Department of Justice.
Amid federal uncertainty, one new budget item is especially notable. Most governments budget a reserve fund to account for revenue changes and emergencies due to economic or public health disruptions. In an unprecedented move, Illinois created the BRIDGE (Budget Reserve for Immediate Disbursements & Governmental Emergencies) Fund with up to $150 million in contingency funds to account for federal uncertainty.
But unmet needs remain. Passing the Adequate & Equitable University Funding Act would address a 20-year funding decrease to Illinois colleges and universities, as well as fill in gaps made by federal aid cuts. Mass transit funding with effective governance changes would address fiscal liability and protect service to communities that need it.
Many of the challenges remain for most impacted residents as Illinois navigates a historically different relationship to the federal government.
Adam Slade is director of state fiscal policy and governance at the Illinois Black Advocacy Initiative.
