Pritzker touts economic growth while proposed budget risks it
Illinois Gov. J.B. Pritzker’s budget proposal slashes general funds for economic development while relying on federal dollars to mask the cuts. This move raises doubts about the governor’s fiscal priorities.
Despite his pledge to invest in economic growth and jobs, Illinois Gov. J. B. Pritzker’s 2026 budget proposal cuts state dollars for economic development by around $325 million and then hopes $339 million from the feds will be there when he needs it.
So, how likely is it Pritzker will get those federal funds when his main occupation seems to be taking shots at the Trump administration?
For fiscal year 2026, Illinois is set to receive $1.66 billion in federal funds for economic development, an increase of $339 million. The increased reliance on federal dollars allows Pritzker to redirect state funds while avoiding immediate blowback for cutting economic development.
Trump has already prioritized spending reductions through initiatives such as the Elon Musk-led Department of Government Efficiency and used federal funding to politically pressure universities. If he cuts Illinois’ economic development grants, Pritzker has a built-in scapegoat. Pritzker can point the finger at Washington, D.C., for hurting Illinois businesses – even though his administration reduced funding first.
This creates a politically convenient trap: Trump cuts the funds, Illinois businesses suffer and Pritzker can accuse him of economic sabotage. Conveniently overlooked would be the state’s underlying budget and tax issues driving slow economic growth and Illinoisans moving out.
It also calls into question whether economic growth is truly a priority for Pritzker: Why is he putting economic development on such shaky footing?
Illinois’ budget issues and economic crisis can’t be solved quickly, but gambling with the state’s economic development funds for potential political gain won’t help.
“Economic growth is an essential ingredient that allows us to move beyond a challenging budget year like this one,” Pritzker said in his budget address.
His actions do not match his words.
Not only is economic development trending downward, but it’s also the only spending category in the general funds budget to decline for two consecutive years. Since 2024, general funds for economic development have decreased by nearly half.
To be clear, increasing state spending isn’t an effective way to grow the economy. More spending means higher taxes to balance the budget, leaving less money for businesses, jobs, consumer spending and retirement savings.
But cutting economic development funding while increasing spending for all other categories and relying on risky federal funding to make up the balance indicates Pritzker might not be as committed to growing the state’s economy as he claimed in his February budget address.
Illinois needs economic growth. The state ranks fourth-worst in the nation for real gross domestic product growth since Pritzker took office.
Illinois ranks just ahead of: North Dakota, hurt by stark declines in its mining and refining sectors; Hawaii, which faced massive wildfires and a resulting population loss in 2023; and Louisiana, a state which has the highest murder rate in the nation and has also dealt with four major hurricanes since COVID-19. Illinois’ woes were inflicted by state leaders, including Pritzker repeatedly setting spending records that have grown the state budget by $16.7 billion since he took office.
It’s irresponsible for Pritzker to pretend he wants economic development yet cut state backing for it, then rely on federal funds that might not be there. All that, just to send a political message.