Illinois Has Received 12 Credit Rating Upgrades

The state has achieved consecutive fiscal improvements alongside eight years of balanced budgets.

Updated on Sept. 29, 2026 in Economic Indicators

Bold flat-color editorial illustration of twelve tiered marble blocks arranged in an upward staircase, representing Illinois's fiscal credit upgrades. — Illinois has secured 12 consecutive credit rating upgrades, reflecting sustained fiscal improvements and eight consecutive years of balanced state budgets. AI Illustration. Upload story photo >

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Illinois has secured 12 consecutive credit rating upgrades, bolstered by a 68% increase in tax collections since 2020. The state government has also maintained eight straight years of balanced budgets.

Why it matters

These upgrades are expected to reduce future borrowing costs for the state by improving its fiscal standing. Officials attribute the progress to consistent revenue growth through tax collection rather than austerity measures.

Illinois reported a 68% increase in tax collections since 2020, totaling $160 billion in additional revenue. Despite these gains, the state currently holds the lowest credit rating among all U.S. states.

The players

Illinois State Government

This is the primary public authority responsible for managing the state budget and implementing fiscal policy.

The details

The state government implemented tax increases that resulted in $160 billion in extra collections during the current administration. These revenue gains have been the primary driver for the string of credit rating improvements.

2020 served as the baseline year for calculating tax collection growth.
September 2026 marked the fiscal achievement announcement at a Chicago luncheon.

Macro View

Illinois's achievement follows a long period of fiscal challenges and aligns with its constitutional requirement for balanced budgets. The current trajectory indicates a departure from past cycles of structural deficits.

Improved credit ratings could eventually lower the state's cost of borrowing, potentially easing the pressure on public infrastructure funding. However, taxpayers may continue to see the effects of the tax increases that supported these revenue gains.

The takeaway

The state has successfully prioritized consistent tax revenue growth to improve its fiscal profile. Residents should monitor how these savings in borrowing costs are eventually utilized in state spending priorities.