CHICAGO — A sweeping set of laws aimed at improving various aspects of life in Illinois will come into effect on July 1, 2025, following the recent signing of the fiscal year 2026 budget by Governor JB Pritzker. This $55 billion budget marks the largest in the state’s history, symbolizing a significant investment in Illinois’ future.
Among the notable changes is an increase in Chicago’s minimum wage. The new rate will rise to $16.60 per hour for all workers, while youth employed in subsidized programs will see an increase to $16.50 per hour. This adjustment reflects the city’s commitment to ensuring fair compensation for its workforce.
Illinois drivers will also notice a sharp increase in gas prices due to a new tax hike of 48.3 cents per gallon that will take effect concurrently. With this adjustment, Illinois will have the second-highest gas tax rate in the United States, placing a heavier financial burden on motorists.
In an environmental effort, a new law will impact hotels across the state. Starting July 1, 2025, establishments with 50 rooms or more will no longer be permitted to offer small single-use bottles for personal care products, including shampoo and conditioner. Next year, this ban will extend to smaller hotels, marking a significant step towards reducing plastic waste.
Governor Pritzker has also enacted several additional laws that will come into effect on the same day. For example, legislation amending the School Code will eliminate references to “student growth components,” thereby altering teacher performance evaluation processes. Additionally, new regulations will remove suspensions of driver’s licenses for minor traffic offenses, streamlining the judicial process while still allowing suspensions in serious cases.
Other newly signed measures include the extension of the Tamara Clayton Expressway Camera Act through 2028, enabling its use to combat human trafficking, and the establishment of a designated hunting season for the Gray Fox. These actions underscore the state’s commitment to both public safety and wildlife management.
Moreover, another law clarifies the regulation of non-community water supplies, ensuring that these resources are effectively monitored. The state has also introduced financial penalties for contractors who do not comply with payroll reporting in accordance with the Prevailing Wage Act, reinforcing labor standards across Illinois.
Illinois lawmakers are poised to impact a wide range of sectors with these legislative changes. As the state prepares for these shifts, residents and businesses alike will need to adapt to the new legal landscape beginning in July 2025.
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