Chicago alders, Mayor Johnson still far apart on 2026 budget deal

Chicago alders, Mayor Johnson far apart on 2026 budget deal

Could Chicago be headed for a government shutdown? Mayor Brandon Johnson and 26 aldermen are still far apart on a deal to pass a 2026 budget.

CHICAGO - Could Chicago be headed for a government shutdown?

Mayor Brandon Johnson and 26 aldermen are still far apart on a deal to pass a 2026 budget.

If no deal is reached by the end of this month, city services could be paused. 

What we know:

While a government shutdown isn’t unusual in Congress, such a thing has never happened before in the City of Chicago.

But the City Council and the mayor have three weeks to come to an agreement on a spending plan that has to close a $1.15 billion gap.

On Monday, Johnson said it comes down to his vision with a corporate head tax and other taxes he argues will primarily affect millionaires and billionaires, versus 26 alders who have supported budget ideas that reject the corporate head tax. Instead, they want to double the garbage collection fee, which is something Johnson said will only hit working Chicagoans the hardest. 

"I don't believe anybody wants a government shutdown. This would not be good for our city," Johnson said. "And the context in which we are working under right now is that working people every single day are struggling to make the ends meet. And so what I've said repeatedly, I'm always open to negotiate details and to find compromises along the way. But doubling the garbage fee, collecting a grocery tax and some of the other regressive ideas that have been put forward … this budget cannot reflect the sins of the past."

Part of those negotiations may include a change in the corporate head tax that would hit companies with 500 employees or more instead of the 100, which is the current proposal.

But the 26 alders say they don't want any corporate head tax. They say it's a job killer, and they say Johnson’s entire budget relies too much on risky borrowing that could send the city's credit ratings spiraling down into junk bond status. So these alders are seeking more cuts as well as higher liquor taxes and downtown congestion fees. 

After that meeting this weekend, Ald. Samantha Nugent (39th Ward) wrote to her fellow council members about the budget negotiation impasse.

"We cannot be a partner to a budget that will push Chicago over a financial cliff and wreak havoc on taxpayers of today and tomorrow. And as we approach the December 30 deadline to pass a budget that protects our economic future, we also cannot afford a Johnson-imposed shutdown taken straight from a page of the Trum playbook," Nugent wrote.

As it stands, it’s still a game of chicken, much like has happened in Congress in recent years.

Vital city services would likely continue during a shutdown. The City Council has until Dec. 30 to pass some sort of spending plan.