Trump is taking billions from Illinois, blue states

As reported in the March Labor Paper, Gov. JB Pritzker’s proposed Illinois budget faces a huge hit by the Trump administration rescinding more than $8 billion, according to the state’s office of Management and Budget.

But the scale of the consequences from what Sen. Dave Koehler (D-Peoria) called “inconsistent federal policies” is far worse for everyday Illinoisans, who’ll lose programs and services AND pay more in taxes and higher costs.

The effect of Trump’s financial targeting of states with Democratic governors and legislatures would take $61.5 billion from Illinois over the next 10 years, according to an analysis by Crain’s Chicago Business.

Generally, besides the negative economic effects from Trump’s tariffs and war in Iran – which increase costs for fuel, fertilizers and building materials – Illinois taxpayers will have to make up the difference (reportedly $1.45 billion through 2029) when the Trump administration drops the traditional federal role of sharing costs for programs such as SNAP benefits.

The Trump administration’s actions particularly threaten the Illinois Department of Public Health, withholding $86 million for, among dozens of program, efforts to reduce cases of HIV and other sexually transmitted diseases. Related work at risk includes the Public Health Infrastructure Block Grant, which funds lead-poisoning prevention grants to 25 local departments and grants that support 674 public health jobs at 96 local agencies, according to a lawsuit filed by Illinois, which joined with California, Colorado and Minnesota in February to sue the federal government after the U.S. Department of Health & Human Services told Congress the funds’ purposes “do not reflect agency priorities.”

That lawsuit argues that the cuts are unlawful because they’re arbitrary, exceed HHS’ authority and unconstitutional.

The IDPH cuts would put 99 jobs in jeopardy, and gut the Chicago Department of Public Health’s lead-poisoning prevention, plus hurt a host of grants originally destined for 96 local agencies, $100 million in aid for COVID programs, $50 million in criminal justice assistance and more.

It’s not just Illinoisans’ health either.

About $2 billion is set to be taken back from public transit.

Illinois Deputy Secretary of State Scott Burnham told the Chicago Tribune that the transportation grant Trump’s trying to kill was supposed to save lives, improve services, and prevent fraud.

“The Trump administration is trying to cut funding for improving road safety, preventing crashes and saving lives in Illinois,” Burnham said. “This grant was awarded by the Federal Motor Carrier Safety Administration and executed through a legal agreement between the agency and the Secretary of State’s office.

“Attempts to cut this critical funding for political purposes is not only vindictive and irresponsible, but Illegal,” he continued. “The Secretary of State will fight to make sure Illinois gets every dollar that is owed.”

That’s considerable.

Elsewhere, Illinois government faces:

* cuts to Medicaid estimated to cost Illinois $1 billion.

* cuts of $1 billion earmarked for child care.

* less help made available for disaster relief.

* $100 million clawed back from the Illinois Environmental Protection Agency,

* $1 billion intended to underwrite food banks, school lunches and other low-income assistance, in addition to dramatic reductions for education and energy projects, and

* $170 million going to non-governmental organizations such as the American Medical Association, Lurie’s Children’s hospital and the American Academy of Pediatrics.

 

Also, the sizable tax cuts for corporations and the rich in Trump’s “Big Beautiful Bill” decrease revenues to states since state taxes are coupled with the feds. That could mean $1.4 billion less in income taxes generated to run Illinois’ state government.

The federal grants are vital, not frivolous, Pritzker said in his State of the State address.

“These are not handouts,” he said. “These are dollars that real Illinoisans paid in federal taxes and that have been constitutionally approved by our elected Democratic and Republican representatives in Washington.

“I want to say to anyone on either side of the aisle: If you want to talk about our FY 2027 budget, you must first demand the return of the money and resources this president has taken from the people of Illinois,” he added.

Meanwhile, there was a glimmer of hope last month when federal Judge Manish Shah blocked some of what Trump is trying to withhold, ordering a Preliminary Injunction on Trump’s attempt to withhold $600 million in health-care grants while that lawsuit brought by Attorney General Kwame Raoul and other states’ AGs works its way through the courts. Shah previously issued a Temporary Restraining Order for a month, but on March 13 he bolstered the order to prevent the rescission for now.

“The loss of capacity to fund and maintain public-health infrastructure puts the health of plaintiffs’ residents in jeopardy,” wrote Shah, from the Northern District of Illinois, Eastern Division. “The states’ sovereign interests here outweigh the executive branch’s likely unlawful interest in using pre-authorized funding to shape state-run governance.”

In a prepared statement, Raoul praised Shah’s injunction.

“Thanks to the order we secured, hundreds of nurses, disease detectives and other essential public-health workers will keep their jobs as we fight the Trump administration’s unlawful attempt to terminate more than $600 million in health-related funding,” he said.