Week in Review: Protecting jobs, delivery tax, July 4th safety & more

GENERAL ASSEMBLY

Illinois Republicans urge veto of Senate Bill 328, file lawsuit to expose Constitutional Violation. Last week, members of the Illinois House and Senate Republican caucuses joined together to call on Gov. Pritzker to veto Senate Bill 328, legislation that would serve only to enrich trial lawyers at the expense of jobs and economic growth. They also filed a lawsuit in Sangamon County court to enforce the Illinois Constitution’s Three Readings Rule, due to the blatant unconstitutional manner the Democratic Majority rammed the special interest proposal through the General Assembly after midnight on the last day of session.

The legislation would overhaul Illinois’ judicial system and allow out-of-state businesses to be sued by out-of-state plaintiffs in Illinois courts for incidents with no connection to the state. A lesser-known provision in the law allows foreign businesses registered in the state to be sued as well. It was passed using a variety of procedural gimmicks to avoid constitutional requirements and public scrutiny.

“We are answering the call of job creators, good government watchdog groups, and most importantly, our constituents, to stand up for transparency and against this job-killing legislation,” House Minority Leader Tony McCombie (R-Savanna) said. “Governor Pritzker must veto SB 328 and show not only the people of Illinois, but also businesses around the world, we want to put all of our people to work, not just trial lawyers.”

Despite Democrats’ super majorities in both the House and Senate Chambers, major pieces of legislation continue to bypass the constitutionally required Three Readings Rule to avoid due process, transparency, and public engagement. Senate Bill 328 was passed after midnight with a gut-and-replace maneuver that allowed the majority party to avoid proper due process such as committee hearings and public input, violating the Three Readings Rule required in the Illinois State Constitution.

“This special interest proposal was passed by the Democratic Majority using a shady process that clearly violates the substance and spirit of the Illinois Constitution,” said Illinois Senate Republican Leader John Curran (R-Downers Grove). “I am calling on Gov. Pritzker to join us in standing up for Illinois taxpayers and promote economic investment in our state by vetoing this anti-business legislation.”

Similar legislation has twice been vetoed by New York Governor Kathy Hochul and multiple national and state business groups, including the American Tort Reform Association and Illinois Manufacturers Association, have been echoing the Republicans’ call for a veto.

“There was no deadline to pass Senate Bill 328. There was time to follow the Constitution and Democrats chose not to,” said State Representative Travis Weaver (R-Peoria). “It is up to every member of the General Assembly and citizen of Illinois to hold bad actors accountable to a transparent and constitutional process.”

The bill itself was designed to make it easier to file frivolous lawsuits in Illinois, even in situations where the case has nothing to do with the state. Any out-of-state business could be sued in Illinois as long as the company is licensed to operate in the state. The legislation would encourage businesses not to expand to Illinois, while only serving to help those who make their living through lawsuits.

“SB 328 is government at its worst and sends a clear message that Illinois is hostile to job creators and due process,” said State Senator Jason Plummer (R-Edwardsville). “As someone from Madison County, which is already ranked one of the worst judicial hellholes in the nation, I have seen how this kind of legislation drives out jobs and rewards trial lawyers at the expense of working families. Illinois deserves better than backroom politics and bad policy.”

Republicans call on Gov. Pritzker to veto SB 328, and the lawsuit seeks to keep it from reaching his desk in the first place.

On Friday, June 27, the Republican plaintiffs presented their Motion for Injunctive Relief to Sangamon County Judge Jack Davis. A July 7 status hearing has been scheduled.

July 1 starts Illinois laws on gender-inclusiveness, climate education, prostitution privacy

Climate change education, gender inclusiveness, birth certificates, prostitution privacy, court translators and insulin costs all received attention from the Illinois General Assembly. Laws involving them take effect July 1. Plus, the state gasoline tax goes up.

July 1 is when spending starts on Illinois’ record $55.2 billion budget, when the state gas tax automatically goes up to 48.3 cents a gallon and when new laws take effect – some passed as long ago as 2023.

Here are nine laws passed by the 103rd Illinois General Assembly impacting gender, birth certificates for those under guardianship and for fetal deaths, climate change education, insulin costs, assisted living, overdose survival, court translators and prostitution records. All nine go into effect July 1.

Read more from the Illinois Policy Institute.

JOBS
Unemployment Rate Unchanged in May. The Illinois Department of Employment Security (IDES) announced last week that nonfarm payrolls were nearly unchanged over-the-month, up +100 (0.0%) to 6,166,100 in May. Additionally, the April monthly change in payrolls was revised from the preliminary report, from +4,100 to -2,400.

The unemployment rate was 4.8% in May, while the revised April unemployment rate was 4.8%, unchanged from the preliminary April unemployment rate. Illinois’ unemployment rate remained 0.6% higher than the national average.

The US unemployment rate held steady at 4.2% in May 2025 for a second straight month, matching market expectations. The rate has remained within a narrow 4.0%–4.2% range since May 2024.

Compared to a year ago, total Illinois nonfarm payroll jobs increased by +21,200 jobs. The industry groups with the largest jobs increases included: Private Education and Health Services (+16,100), Leisure and Hospitality (+7,800), and Government (+7,000). The industry groups with jobs decreases included: Professional and Business Services (-8,600), Manufacturing (-5,300), and Trade, Transportation and Utilities (-5,000). In May, total nonfarm payrolls were up +0.3 percent over-the-year in Illinois and up +1.1 percent in the nation.

TAXES
Delivery Tax In Limbo As Illinois Democrats Reach Deeper Into Your Wallet. Do you ever get things delivered from retailers like Amazon, Walmart, Target, or even your favorite small business? Whether it’s school supplies, household essentials, groceries, or pizza, delivery has become a go-to convenience for many Illinois families.

However, Governor JB Pritzker and Springfield Democrats floated an idea this past legislative session to add a $1.50 delivery tax to nearly every package shipped to Illinois homes. Luckily, delivery taxes did not receive a vote in the House, but the new tax could still be adopted in veto or special sessions later this year.

Democrats haven’t been shy about raising taxes, pushing forward nearly $1 billion dollars in new taxes and fund sweeps to pay for increased spending in the Illinois’ FY2026 budget. As part of the newly-signed $55 billion state budget—the largest in Illinois history—Democrats once again chose to tax more, even as working families already face the near-highest tax burden in the country.

Among the new taxes taking effect:

Sports Betting Tax Increase: A per-wager tax of $0.25 for the first 20 million bets, doubling to $0.50 after that. DraftKings and FanDuel have already responded by raising costs for users.

Hotel Tax on Short-Term Rentals: Services like Airbnb and Vrbo are now subject to Illinois’ Hotel Operators’ Occupation Tax, meaning families trying to travel in-state will pay more out-of-pocket.

Tobacco Tax Hike: The wholesale tax on tobacco products jumps from 36% to 45%, another hit to consumers.

These taxes are just the latest example of how the Democrat-led Illinois government keeps spending more and taxing more while ignoring the real struggles of working families. Instead of collaborating with Republicans on ideas for tax relief, like protecting family farms or no taxes on tips and overtime pay, Democrat leaders once again chose to take more.

House Republicans remain steadfast in their efforts to stop wasteful spending, defend families, oppose new taxes, and introduce pro-growth policies.

FOURTH OF JULY
IDNR and State Fire Marshal urge fireworks safety this Fourth of July. The Illinois Department of Natural Resources (IDNR) and the Office of the Illinois State Fire Marshal (OSFM) are reminding organizations and individuals sponsoring fireworks displays to keep safety top of mind and to be sure their vendors have the required state licenses and certificates before their fireworks shows.

The Illinois Explosives Act requires that anyone who purchases, possesses, uses, transfers, stores or disposes of explosives, including display fireworks, must have an explosives license and explosives storage certificate issued by the IDNR.

Licensing and storage requirements administered by the IDNR do not apply to consumer fireworks (classified as 1.4 explosives). Approved consumer fireworks are regulated by the OSFM and are permitted only in villages, counties and municipalities that have passed ordinances allowing such displays. Consumer fireworks may be purchased and displayed only by adults who have obtained permits from their local jurisdiction. Handheld fireworks, including firecrackers, roman candles and bottle rockets, are not approved for sale or use in Illinois.

Read more from the IDNR and OSFM.