Illinois Lawmakers Eye Data Centers, Housing in Veto Session
State legislators previewed fall veto and lame-duck priorities, including data center regulation, the BUILD housing plan, and Chicago Public Schools funding.
Updated on Nov. 11, 2026 in Legislative Policy
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Illinois state legislators offered a preview of priority issues for the fall veto session and lame-duck session on Monday. Data center regulation ranks as a top priority across both chambers and both parties.
Why it matters
Hyperscale data centers, often used by AI companies, place significantly greater strain on public utilities and water supplies than other development, making their regulation a statewide concern. Lawmakers are also weighing how to address housing affordability and a Chicago Public Schools deficit that depends on promised state funds.
Chicago Public Schools' $9.96 billion budget this year relies on $150 million in promised state funds, which would have to move through the EBF funding formula requiring roughly $500 to $600 million at the top of the funnel. Appropriations legislation has historically not been taken up until a new session, leaving the timing of this money unresolved.
The players
Sue Rezin
Illinois state senator representing a district centered on Morris, who is pursuing legislation linking local property tax relief to new data center projects.
Bill Cunningham
Illinois state senator who is retiring and said it would be unlikely to find enough funds for Chicago Public Schools before the next session.
J.B. Pritzker
Governor of Illinois who said the BUILD plan could be delayed to the next term to allow more time for negotiations.
The details
A panel of Illinois state legislators outlined priorities on Monday, with Sen. Sue Rezin seeking a bill that ties local property tax relief directly to new data center projects. Funding increases for existing financial assistance programs passed in the fall, but the BUILD plan's cuts to red tape for new housing construction have not yet passed. House Democrat leaders are prioritizing government and legislature-specific ethics reforms during the veto session.
Timeline
Fall 2026: Partial BUILD package passed with increased assistance program funding.
November 9, 2026: Legislators previewed veto session priorities at a Monday panel.
November 10, 2026: Lawmakers returned to Springfield for the first veto session week.
January 2027: The next General Assembly term begins, when regulations and appropriations may be addressed.
Political Context
Delivering the promised $150 million to Chicago Public Schools would have to move through the state's Evidence-Based Funding formula, which requires roughly $500 to $600 million to be poured through the top of the funnel. Advocates for data center limits and housing reform face the same constraint that has held up appropriations until new sessions.
Residents near proposed hyperscale data centers could see property tax relief tied to those projects if Sen. Rezin's measure advances. Chicago families may face personnel and budget cuts at CPS this year if the $150 million is not delivered in time.
The takeaway
Data center and housing decisions made this session will shape utility costs and property taxes for Illinois residents, so the veto session outcome deserves close attention.
What happens next
Lawmakers return to Springfield for the veto session, and the next General Assembly term begins in January 2027 when appropriations and regulation may be addressed.
Further reading
For more on how these measures move through the process, see Legislative Policy coverage in Illinois.
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Should data centers in your area be required to cover their own power and water costs?
