Chicago mayor defends budget as analysts warn of credit risks

Chicago mayor defends budget as analysts warn of credit risks

Mayor Brandon Johnson spent more than three minutes defending his 2026 budget proposal Thursday, despite warnings that it could lead to another downgrade of Chicago’s credit rating.

CHICAGO - Mayor Brandon Johnson spent more than three minutes defending his 2026 budget proposal Thursday, despite warnings that it could lead to another downgrade of Chicago’s credit rating.

What we know:

Earlier this year, Chicago’s credit rating was downgraded, signaling to investors that the city may struggle to meet its financial obligations.

Johnson said that’s exactly why he is pushing for new, progressive revenue sources. He argued that the city’s financial troubles began long before he took office.

The mayor’s proposed $16 billion budget includes several first-of-their-kind revenue ideas, including a social media tax. Johnson said the plan is rooted in fairness and long-term stability.

Other proposals include a community safety surcharge, a $21-per-month head tax on large employers, and higher fees on cloud-based services.

Critics warn the measures could push jobs and innovation out of Chicago, making the city less competitive.

Johnson countered that the budget is a "moment of truth" for fixing what he described as a broken system, and said he will not balance shortfalls "on the backs of the poor."

"You're asking me to go before city council and defend the very people that have made an enormous amount of revenue over the course of decades off the backs of working and poor people. What are we debating here?…" Johnson said. 

What's next:

No official date has been set for a City Council vote on the budget, but the vote must take place before the end of the year.