Gov. J.B. Pritzker said state agencies need to trim 4%, blaming President Donald Trump and a slowing national economy. Illinois’ economic woes started long before Trump.
Gov. J.B. Pritzker announced state agencies need to find 4% budget cuts, citing President Donald Trump’s policies as the reason for Illinois’ fiscal issues.
But when you look at how other large states are performing, Illinois stands out for all the wrong reasons. A top economist found Illinois may already be in a recession.
According to data on state business cycles, Illinois is the largest state currently considered at “high risk” of a recession or already in one, according to Moody’s Analytics chief economist Mark Zandi. Among the 10 most-populated states, only Illinois and Georgia fall into the high-risk category.
Texas, Florida, Pennsylvania and North Carolina – all with large, diverse economies – are still expanding. Even New York and California, the other two large blue states with big-city challenges and high costs of living, are in better shape than Illinois.
Pritzker said “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.”
Just before its deadline, Illinois lawmakers passed a record $55.2 billion budget, featuring over $394 million in tax increases, $237 million in fund sweeps and $216 million in delaying funds.
Despite lawmaker claims of budget cuts, the 2026 budget increased by $2 billion compared to 2025. Gov. J.B. Pritzker has grown Illinois’ budget by $16 billion and enacted over 50 tax hikes since taking office in 2019.
Pritzker’s order for state agencies to identify 4% in cuts might be the right move for the wrong reason, but it highlights the structural problems Illinois has faced for years: high pension costs, outmigration and slow economic growth compared to its peers. Blaming national politics only goes so far when your peers are finding ways to grow.
