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ILLINOIS WEATHER

Illinois Passes Budget and New Ag Policies for 2025 Session

Illinois Passes Budget and New Ag Policies for 2025 Session


By Andi Anderson

In a major update for 2025, the Illinois General Assembly approved a $55.2 billion budget for Fiscal Year 2026 just before the May 31 deadline.

The budget includes a $2.1 billion spending increase, supported by taxes on tobacco products, gambling, and large out-of-state businesses.

Two key items benefiting corn farmers were retained despite budget pressures. The Fall Covers for Spring Savings cover crop program was granted $960,000, while the National Corn to Ethanol Research Center received $1 million. These investments are seen as a win in a challenging fiscal year.

IL Corn also worked hard to protect the state's biodiesel tax incentive, which faced cuts due to pressure from lawmakers trying to address public transit funding gaps.

However, one setback was the failure of the Family Farm Preservation Act, aimed at reforming estate tax laws. Despite strong bipartisan support and advocacy from IL Corn, Illinois Farm Bureau, and livestock organizations, the reform did not make it into the final budget.

In terms of carbon capture and sequestration (CCS), the legislature added protections for landowners impacted by pipeline construction. Compensation must now be provided for damage to farmland productivity and land surfaces.

IL Corn and the Illinois Renewable Fuels Association helped amend this legislation to ensure ethanol CCS projects could continue.

One controversial new law prohibits CCS under or near the Mahomet Sole Source Aquifer, despite earlier bipartisan safety agreements. While IL Corn opposed this bill due to potential harm to ethanol investment, they did manage to protect current projects and support a study on aquifer safety to be completed by 2031.

On biofuels, discussions around a low-carbon fuel standard continued without legislation passing. A related bill to fund fuel station upgrades using unspent environmental funds had a hearing but did not advance.

Lastly, a new law updates pesticide licensing, allowing applicators to earn Continuing Education Credits (CECs) instead of retaking certification exams every three years—modernizing the system and supporting ongoing learning.

Photo Credit: shutterstock-dickgage

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Categories: Illinois, Government & Policy

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