In a significant move, the Democrat-run Illinois Senate has voted in favor of Governor JB Pritzker's proposed 2025 Fiscal Year budget, with a majority of 38-21 in support. The new budget comes with a price tag of $870 million in tax increases for Illinois residents.

One of the major sources of these tax increases is sports betting, as the tax rate is set to rise from 15% to 35%. Despite concerns from critics about potential hindrances to industry growth and reduced odds for betters, evidence from states with higher tax rates, reaching as high as 51%, indicates that such worries may not necessarily materialize.

The budget proposal also includes $182 million in taxpayer funding to address the state's expenses related to the migrant crisis. In addition, $440 million has been allocated towards a Medicaid-style health benefit plan for noncitizens.

Recognizing the financial burdens faced by low-income residents, the budget sets aside $10 million for a program aimed at paying off their medical debts owed to collection agencies.

Within the budget, $50 million has been allocated to implement a child tax credit, providing a $700 tax credit for each child aged 12 and under. According to a study by the Illinois Economic Policy Institute, this tax credit is projected to cost the state $1.1 billion and reduce childhood poverty by 7.6%.

Significant funding has also been allocated towards the Smart Start Illinois initiative, increasing the funding from $200 million to $400 million for 2025. This initiative encompasses three key components: the creation of 20,000 new preschool seats, raising wages for childcare workers to bring stability to the field, and expanding access to home visiting and early intervention services.

Notably, starting January 1st, 2026, the budget eliminates the state's 1% grocery tax. This move aims to provide relief to families struggling with rising grocery prices. However, local governments dependent on revenue from the grocery tax will have until 2026 to implement their own tax.

As part of an initiative to position Illinois as a hub for artificial intelligence development, the budget allocates $500 million towards boosting quantum computing. This plan includes the establishment of a quantum campus in partnership with the University of Illinois, the University of Chicago, and the Chicago Quantum Exchange. It also involves investment in a cryogenic facility for quantum research and development, as well as infrastructure for the technology hub.

In an effort to address healthcare disparities, the budget commits $23 million towards reducing the deaths of Black women during pregnancy. Currently, Black women in Illinois are estimated to face a pregnancy-related mortality rate three times higher than that of White women due to healthcare inequalities.

While the budget has been met with approval from Democratic lawmakers, there has been criticism from Republican Senators. They argue that Governor Pritzker's open-door sanctuary policy and liberal social programs are leading to unchecked spending and burdening Illinois residents with tax hikes.

The budget will now move to the House for further approval, with a scheduled vote set to take place in Springfield on Tuesday. Earlier this month, Governor Pritzker's office had warned lawmakers to prepare for $800 million in budget cuts if the proposed budget and tax increases were rejected.