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CCH Statement on Governor Pritzker’s 2026 Budget Address

Wednesday, February 18, 2026

Governor Pritzker delivered his 2026 State of the State Address this afternoon, sharing his policy priorities and budget proposal for the next fiscal year. We are disappointed that the Governor has proposed cuts to HOME Illinois, as well as decreases to the Supportive Housing and Emergency and Transitional Housing line items. Given the drastic federal changes that are impacting the lives of the most vulnerable Illinoisans, this is not the time to cut funding for crucial programs. The State must step up address these most pressing needs.  

For more than 45 years, Chicago Coalition to End Homelessness has worked to address the root causes of homelessness in Chicago and across Illinois through advocacy and organizing. We work directly with people with lived experience of homelessness whose perspectives and personal experiences provide the foundation for our advocacy priorities. 

“Having experienced homelessness, I can say the resources that were available to me are not there for the current homeless folks,” said grassroots leader Victoria Felker. “If my case manager had not helped me find resources like computers, job readiness, and shelter, I’m not sure where I would be.”

As rents continue to rise and federal support disappears, additional funding is needed to ensure even more Illinoisans aren’t pushed into homelessness. We are glad the Governor acknowledges how hard it is for people across the state to get by, but the proposed budget reductions run counter to his stated desire to address the housing affordability crisis.  

“Illinoisans, like Americans everywhere, are still paying too much for groceries, too much for housing, too much for electricity, too much to live,” Governor Pritzker said in his address. “Everything is just too damned expensive. 

Given these sentiments, we are particularly concerned by Governor’s proposed additional cuts to HOME Illinois, the state’s comprehensive strategy to address homelessness by expanding affordable housing and strengthening the safety net. This initiative brings together residents, community organizations, and state agencies to help people experiencing homelessness achieve financial stability. Our understanding is that this cut is based on funding usage over the last fiscal year, but we know that delays in getting funding to providers often hinder their ability to spend these funds before the end of the year.  

This would mark the second consecutive year of cuts to HOME Illinois following several years of increased investment. With this years’ budget decrease, the proposed cut would mark a $17.3 million (6%) decrease over two years, at a time when additional resources are urgently needed to address homelessness across the state.  

We are asking the Governor and our state legislators to include the following increases in Illinois’ FY27 Budget

Homeless Prevention Program 
$5 million increase would help an estimated 4,000-5,000 additional struggling households to stay in their homes through rental, mortgage, security deposit, and utility assistance, as well as supportive services. More than half of the households served by this program are families with children and in FY24, more than 90% of households who received assistance retained their housing. 
Homeless Education Funding 
$5 million designated increase to the Illinois State Board of Education’s budget would allow school districts to implement interventions to identify and assist students experiencing homelessness. Illinois school districts identified almost 50,000 students experiencing homelessness in 2025, but an additional 55,000 homeless students may have gone unidentified and therefore not provided with needed support. Governor Pritzker lauded “a remarkable year for K-12 education in our state.” We need to ensure that students experiencing homelessness have the supports they need to keep pace with their peers. Completion of a K-12 education is the best way to prevent future homelessness for young Illinoisans. 

Scattered Site Permanent Supportive Housing Program
Federal funding threats and proposed policy changes would force Illinois providers to reduce access to low-barrier, proven solutions that prioritize stable, permanent housing. A $60 million state budget increase would ensure people who previously experienced homelessness, including those with disabilities, are able to remain in their homes, regardless of federal policy changes. This funding would also create new housing opportunities for additional households.    

Emergency and Transitional Housing Program
$14 million increase would help reduce the severe shortage of emergency shelter beds outside of Chicago. Instead, the Governor proposed a $7 million reduction. According to the Illinois Interagency Task Force on Homelessness, 5,379 additional beds are needed statewide. This would be a 50% increase to the 10,044 beds currently serving people experiencing homelessness outside Chicago.   

Supportive Housing Services
Thanks to recent investments, Illinois has created thousands of new permanent supportive housing units across the state. Unfortunately, Governor Pritzker has proposed a $1.4 million reduction to this funding. Funding for accompanying supportive services has also not kept pace. A $7.5 million increase is needed to ensure that residents of these new units have access to high quality case management and services to help them get back on their feet.   

We recognize that the State of Illinois is facing a challenging fiscal reality that has forced our leaders to make difficult choices. With additional funding gaps and uncertainty created by harmful federal policy changes and cuts, the Governor and General Assembly need to advance progressive revenue solutions that would ensure the rich pay their fair share and people living on the margins are not overburdened with taxes. 

“I’m aware funding is scarce and knowing the current federal administration is working to eliminate most if not all homeless funding,” Felker said. “I ask the Governor and General Assembly to continue funding homeless services and, if possible, to increase the amount of money as much as you can.”

While we’re seeing the federal government turn to ineffective and irresponsible responses to homelessness like the directives outlined in Trump’s Executive Order last July, we are also seeing similar actions taken by municipalities across the state, choosing punitive measures like fining and arresting people for living outdoors rather than investing in real, lasting solutions. Some municipalities, like Rock Island, are even taking steps to force much needed shelters and service providers out of their communities. Our state leaders have a responsibility to elevate proven, effective responses and ensure these programs remain available to individuals and families across the state.  

CCH urges Governor Pritzker and the General Assembly to include the funding necessary in the FY27 budget to ensure more Illinois households have a safe, stable place to call home. With a myriad of challenges on the horizon, progressive revenue is necessary to meet the needs of the most vulnerable residents across our state. We will continue to fight alongside our grassroots leaders who have experienced homelessness for solutions that will make a difference.  

The post CCH Statement on Governor Pritzker’s 2026 Budget Address appeared first on Chicago Coalition to End Homelessness.

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