Gov. Pritzker Issues Executive Order to Mitigate Impact of Trump’s Economic Disasters on Illinois’ Budget

CHICAGO – Today, Governor JB Pritzker signed Executive Order 2025-05 directing state agencies to identify up to 4% of Fiscal Year 2026 General Funds appropriations to reserve in order to mitigate the impact of Trump’s disastrous economic policies while working to maintain core services. The action comes as all states, including Illinois, are forced to manage the Trump and Congressional Republicans’ budget bill that threatens state revenue streams and places pressure on Illinois’ fiscal stability.

Trump’s reckless economic policies are wrecking state economies, stifling job growth, and increasing unemployment in key sectors. At the same time, Trump’s tariffs are taxing working families, increasing the costs of everyday goods and disrupting supply chains. This chaos is making it harder for businesses to hire, expand production, or maintain payrolls. In the coming months, Trump’s budget bill will further compound these pressures, creating uncertainty over state revenues as slower economic activity directly affects the amount of revenue collected and ultimately puts funding for core services at risk. To protect the State’s fiscal stability, Governor Pritzker is directing agencies to take proactive steps to brace for these challenges and work to maintain core services.

“Illinois has built a strong economy and proven its fiscal responsibility, but Trump’s disastrous policies threaten to undo that progress,” said Governor JB Pritzker. “Trump and Congressional Republicans sealed one of the largest wealth transfers in American history, stripping health care, food assistance, and other essential supports for working families to fund permanent tax breaks for the wealthy. At the same time, tariffs are hurting our farmers and businesses, slowing job growth, and driving up costs for Illinois families. I’m taking executive action to mitigate the impact of Trump’s economic policies on our state finances, maintain critical services, and preserve our economic stability.”

Under the order, agencies under the Governor will:

Agencies must submit reports on their progress to the Governor’s Office and the Governor’s Office of Management and Budget (GOMB) within 30 days. Key obligations such as pension payments and K-12 funding, and offices outside the Governor’s authority (i.e. legislative, judicial, and other constitutional offices) will not be impacted. The Executive Order will take effect immediately.

Trump’s Budget and Tariffs Are Undermining Illinois’ Economic Growth

For years, Illinois’ economy has been on the rise. As the nation’s 5th largest economy, the state surpassed $1 trillion in GDP in 2022 and steadily grew revenues. That growth enabled Gov. Pritzker to deliver seven balanced budgets, secure nine credit rating upgrades, and eliminate a massive bill backlog. Now, Trump’s budget bill and tariffs are already undermining growth and threatening the fiscal stability Illinois worked hard to build.

While no state in the nation — including Illinois — can fully backfill the cuts imposed by the federal government, Gov. Pritzker remains committed to mitigating their impact wherever possible. This action echoes previous budget reserve measures including those implemented during the COVID-19 pandemic, when agencies were asked to conserve resources to maintain fiscal stability amid uncertainty.

Today’s action also builds on Gov. Pritzker’s efforts to address the economic challenges created by Trump’s tariffs on Illinois businesses and workers. Earlier this summer, Gov. Pritzker signed an Executive Order directing agencies to evaluate the scale and impact of Trump’s tariffs in key economic sectors. He has also led trade missions, signed economic cooperation agreements with the United Kingdom and Mexico, and continued engagement with international leaders, including the Canadian Ambassador to the U.S. and the Consul General of Mexico in Chicago.

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