Spring Legislative Session Ends with Budget Passage and Many Priorities Left Behind
The Illinois General Assembly adjourned its spring session in the early hours of June 1 after approving the state’s $55.2 billion FY26 budget - the highest in state history - which included a $1.6 billion revenue package. The Governor, House, and Senate leadership claim these revenues are necessary due to Congress and the Federal Administration stalling the national economy.
Despite passing these major fiscal bills, many high-profile and widely supported proposals were left unresolved.
Among them was our effort to increase the DOC fee, which, despite verbal commitments from leadership in both chambers, was ultimately not included in the final budget or revenue packages. Our initiative was stalled along with other notable proposals, including major transit reforms, reforms to the cannabis industry, a Tier 2 pension fix, and energy legislation.
It’s clear that some priorities were pushed to the side, with lawmakers anticipating further fiscal changes ahead. Some believe legislative leaders and the Governor may revisit larger issues, including new revenues, after Congress finalizes the federal budget later this year.
While this outcome is disappointing, the IADA remains fully engaged. We are committed to improving the business climate for dealers and will continue our advocacy as discussions evolve this fall.
You can view a full summary of the FY2026 budget [HERE], and an end-of-session legislative report [HERE].
Franchise Protections Held in House
SB 1939 was an initiative of the IADA to strengthen franchise protections for Illinois auto dealers. Specifically, it prohibits manufacturers from using affiliated, subsidiary, or spin-off entities to circumvent existing laws and compete directly with their own Illinois franchised dealers through direct sales or service operations.
SB 1939 passed the Senate unanimously (55-0-0) with broad bipartisan support and sponsorship, reflecting a clear recognition of the importance of preserving fair treatment for franchised dealers.
Unfortunately, despite this strong momentum, SB 1939 was held up in the House. Opposition from environmental advocates and progressive members politicized the bill—not due to concerns with the substance of the legislation, but because they believed it might indirectly benefit Elon Musk, citing his perceived alignment with the Trump administration and involvement in the Department on Government Efficiencies (DOGE).
Despite broad bipartisan support and enough votes to pass, House leadership—Speaker Chris Welch and Judiciary Chair Rep. Jennifer Gong-Gershowitz—ultimately prevented the bill from receiving a vote, despite having the votes to pass.
While the result is disappointing, IADA is not backing down. We remain committed to the franchise model and will continue fighting for this important legislation.
