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Chicago Mayor Johnson highlights debt relief as budget deadline nears
Chicago officials say the city has collected 75% of debt from the past three years while offering relief programs for residents struggling with vehicle and water bills and targeting corporations for unpaid taxes.
CHICAGO - As a December budget deadline looms, Mayor Brandon Johnson is going in depth on Chicago's debt collection efforts and relief for those who can't pay their bills
The backstory:
City Comptroller Michael Belsky explained that a large chunk of vehicle debt dates back to 2021 , and what he called a more compassionate approach to fines and fees collection during COVID. Now, in 2026, he says they've collected 75 percent of the debt over the last 3 years.
Belsky went in depth with Fox Chicago on the Finance Department strategy, with 13 new tax auditors brought on to find delinquent entities, like large corporations, and bringing that missing revenue back into the city. It's ramped up by 15 percent year over year since Johnson took office. While these collection efforts are underway, the administration is giving financially challenged residents relief on vehicle and water bill debt through debt relief and amnesty programs.
"If it is making a choice between food and medicine or paying vehicle debt, the Johnson administration will always side with the health and safety of our citizens," said Belsky. "That said, it is important to help people come back into compliance and for the city to recoup as much of what is owed in debt as possible."
By the numbers:
The Utility Billing Relief program provides penalty relief, rate reduction, and debt forgiveness to make water and sewer bills more affordable. 35,200 households have enrolled, according to Belsky. 90% of households have successfully completed their payment plan, bringing in $52 million.
The Clear Path Relief program provides low-income drivers with relief for vehicle-related debt. According the to the city, debtors can pay off the original fine amount for tickets issued in the last 3 years and all older debt will be waived. 106,500 residents have participated since 2022, bringing back $51 million.
The city also has long term payment plans for residents, with up to 60 months available.
The Administrative Debt Relief Program, Clear Path Program, and Utility Billing Relief Program (Utility Billing Relief ) all have household income requirements equal to or less than 300% of the Federal Poverty Guidelines.
The comptroller’s office also runs amnesty programs that netted $15.6 million in 2025.
City officials believe some of the debt may not be possible to collect. The vast majority of outstanding vehicle debt dates back decades, according to Belsky. He attributed that to debtors who no longer live in Chicago, never lived in the city, or have since passed away.
The Johnson admin believes a key way to get debt back is by targeting corporations that owe them money. Last month, the city announced a recovery of $32.2 million from two large corporations that had been underpaying their city taxes.
Critics in City Council have argued the Johnson administration has added to the debt with programs put in place using federal pandemic relief dollars that no longer have the same funding.
The Source: The information in this report came from an interview with Chicago Comptroller Michael Belsky, Chicago Finance Department information on debt collection and relief programs, city information on the Utility Billing Relief and Clear Path programs, and statements from critics in the Chicago City Council.