Press Release:  Don’s Destruction: New Report Finds Trump Cuts Could Shrink Illinois Economy By $10B

In case you missed it, a new report from the Illinois Economic Policy Institute revealed that by 2029, Illinois’ economy will shrink by $10 billion as a result of Trump’s cuts to programs like Medicaid and SNAP. By the end of Trump’s current term, Illinois will also have lost 86,000 jobs, $730 million in corporate tax income revenue, and $540 million annually in state tax revenue collections due to decreased economic activity across the state.

In reaction to this report, Democratic Party of Illinois Chair Lisa Hernandez released the following statement:

“After years of Republican leadership driving our state’s economy into the ground, Illinois Democrats proved that responsible leadership delivers real results. Under Governor Pritzker, Illinois has become a national example of fiscal recovery. We earned ten credit rating upgrades, passed seven balanced budgets, strengthened our economy, and created thousands of jobs. Now, Trump-led Republican cruelty threatens to upend our progress. Republicans’ largest cuts to Medicaid and SNAP put working families at risk—and they jeopardize the stability Democrats have brought to our economy.”

Other key losses include:

• $314 million in lost federal funding for K through 12 public school districts.

• $753 million in lost labor income from federal government layoffs, “deferred resignations,” hiring freezes, and eliminations of collective bargaining rights.

• Phasing out clean energy tax credits, pausing transit projects, and freezing energy projects will reduce Illinois’ GDP by $2.0 billion annually and eliminate 22,000 jobs, mostly in good-paying construction careers.

In response to federal funding cuts and spending freezes, Governor Pritzker signed Executive Orders requiring state agencies to reserve 4% of General Fund appropriations to ensure fiscal responsibility and to mitigate the impacts of Trump’s tariffs on our economy.

###