Archive · 23 Dec 2025
Chicago Council Passes 2026 Budget Amid Disputes
Chicago's City Council passed a big budget plan for 2026, but there's some uncertainty.
The budget is about $16 billion and aims to fix a $1.2 billion shortfall.
The council and the mayor had different ideas about how to make up the money.
The council's plan includes new taxes on things like cloud computing and shopping bags, and it also wants to collect more debt.
The mayor is worried about some parts of this plan, especially selling debt to outside companies and whether the new taxes will bring in enough money.
The mayor hasn't decided yet if he will sign the budget or veto it.
If he doesn't sign it by the end of the year, the city could face a shutdown.
This budget process has been more argumentative than usual, showing a shift in how the city makes these big decisions.
Chicago City Council passed a $16 billion budget for 2026 to close a $1.2 billion deficit.
The budget includes higher taxes on cloud computing, shopping bags, and increased debt collections.
Mayor Brandon Johnson has concerns about selling debt collections and optimistic revenue assumptions.
The council's budget proposal excludes a proposed head tax on larger employers.
Mayor Johnson has not decided whether to sign or veto the budget, risking a city shutdown if not enacted by year-end.
- Who
- Chicago City Council and Mayor Brandon Johnson
- What
- Passed a $16 billion budget for 2026 to close a $1.2 billion deficit
- When
- Less than two weeks before the year-end deadline
- Where
- Chicago, Illinois
- Why
- To avoid a local government shutdown and address financial concerns
- Budget Amount
- $16 billion
- Deficit Closed
- $1.2 billion
- Main Operating Account
- Corporate fund
- Revenue Sources
- Cloud computing taxes, shopping bag taxes, debt collections
- Mayor's Concerns
- Debt collection practices, revenue assumptions
- Budget Deadline
- Year-end to avoid shutdown
- Mayor's Stance
- Undecided on signing or vetoing
- Budget Process
- Contentious, marked a change in legislative norms