The 2026 budget impasse continued this week, with ongoing negotiations scheduled through the weekend and into the upcoming week. On Wednesday, 27 alders introduced an alternative revenue plan to Mayor Johnson's proposed 2026 budget. The efforts spearheaded by City Council eliminate the head tax and replace the revenue with an increased garbage fee, an increased wholesale liquor tax, an increase to the homeshare tax, and the expansion of video gaming machines citywide. The alternative budget proposal restores the full advanced pension payment and avoids borrowing for firefighter backpay.

In response, Mayor Johnson put forward modifications to the proposed head tax. The latest head tax proposal would increase the fee to $33 per employee and raise the employee head-count threshold for eligible businesses. Instead of applying to businesses with 100 or 200 employees, the head tax would now apply to businesses with 500 or more employees, targeting some of the largest corporations in Chicago. The Office of Budget and Management made available analyses of the modified head tax to demonstrate its impact on the top 20 publicly traded companies when combined with the Trump cuts, as well as a breakdown of industry types that would contribute to the modified head tax. 

Next week, City Council will convene Monday through Thursday, and again on Tuesday, December 23, to work toward a budget resolution and avoid a government shutdown. City Council is legally required to pass a balanced budget by December 31, 2025, to avoid any disruptions to services. The Committee on Finance and the Committee on Budget have been scheduled for Tuesday, December 16, in hopes that alderpeople will have reached a resolution by then. The legislative team continues to closely follow budget negotiations and will share updates with 49th Ward constituents as they become available.