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Alders pass 2026 budget
With just days to spare, a renegade coalition of aldermen approved the spending portion of a budget opposed by Mayor Brandon Johnson.
CHICAGO - The Chicago City Council approved the final portions of a record $16.6 billion budget for 2026 by a 30-18 vote on Saturday.
The budget rejects Mayor Brandon Johnson’s proposal to reinstate a head tax that would have charged businesses with more than 500 employees $33 per worker per month.
The budget is short of a veto-proof majority, meaning it would return to the City Council for further debate if the mayor rejects it.
The backstory:
On Friday, the council approved the so-called alternative budget by a 29-19 vote.
The plan includes $535 million in tax increases, along with one-time revenue, borrowing and assumed efficiencies, to close a $1.15 billion budget gap.
Approved tax increases include a first-in-the-nation tax on social media, a higher cloud computing tax, a liquor tax increase, an expansion of the congestion tax on rideshare services, a higher plastic bag tax and increased fines and fees.
The budget also allows vendors to add video gambling terminals and taxes the revenue, despite opposition from labor unions.
What they're saying:
Reaction poured in from across the city this weekend.
The Illinois Manufacturers’ Association praised aldermen for opposing the corporate head tax but said the final budget was "far from perfect."
The Chicagoland Chamber of Commerce said the plan is an improvement over the mayor’s proposal but still places a disproportionate share of new taxes on businesses.