Illinois General Assembly - Full Text of HB5377

LRB104 19345 SPS 32792 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB5377

Introduced 2/10/2026, by Rep. Regan Deering

SYNOPSIS AS INTRODUCED:

New Act
30 ILCS 105/5.1038 new

Creates the Work Always Pays Act. Provide that a State-administered benefit program shall not reduce benefits by more than $0.50 for each $1.00 increase in a household's earned income. If an increase in earned income results in a reduction of net household resources compared to the level in effect immediately prior to the increase, then the household shall be eligible for a bridge credit. Provides that the amount of the bridge credit shall equal the difference between: (i) the household's net household resources immediately prior to the increase in earned income; and (ii) the household's net household resources after the increase in earned income and corresponding benefit adjustments. Provides that a household that experiences an increase in earned income shall be subject to a 90-day earnings buffer period. Amends the State Finance Act to make a conforming change. Effective January 1, 2027.

A BILL FOR

AN ACT concerning public aid.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Work Always Pays Act.

Section 5. Definitions. As used in this Act:

"Earned income" means wages, salaries, tips, commissions, and other compensation received from employment or self-employment, as determined under applicable program rules.

"Household" has the meaning set forth in the applicable State-administered benefit program.

"Net household resources" means the combined total of earned income and the cash value of State-administered benefits received by a household.

"State-administered benefit program" means:

(1) the Supplemental Nutrition Assistance Program;

(2) the Temporary Assistance for Needy Families Program;

(3) the Child Care Assistance Program;

(4) medical assistance programs, including Medicaid; and

(5) the Low-Income Home Energy Assistance Program.

Section 10. Benefit reduction cap. Notwithstanding any other law, a State-administered benefit program shall not reduce benefits by more than $0.50 for each $1.00 increase in a household's earned income.

Section 15. Bridge credit program.

(a) If, despite the benefit reduction cap set forth in Section 10, an increase in earned income results in a reduction of net household resources compared to the level in effect immediately prior to the increase, then the household shall be eligible for a bridge credit. The bridge credit shall be provided for a period of 6 months following the date of the increase in earned income. The amount of the bridge credit shall equal the difference between: (i) the household's net household resources immediately prior to the increase in earned income; and (ii) the household's net household resources after the increase in earned income and corresponding benefit adjustments.

(b) Each State agency administering a State-administered benefit program shall establish procedures for the calculation and issuance of bridge credits. A bridge credit shall be issued upon a determination by the State agency that a household is eligible for a bridge credit in accordance with subsection (a).

(c) The Work Always Pays Bridge Credit Fund is created as a special fund in the State treasury. Moneys in the Fund shall be used exclusively for the purpose of providing Bridge Credits under this Section and for administrative costs incurred by State agencies in implementing this Act.

Section 20. Earnings buffer period. A household that experiences an increase in earned income shall be subject to a 90-day earnings buffer period. During the earnings buffer period, benefits under a State-administered benefit program shall remain at the level in effect immediately prior to the increase in earned income.

Section 25. Rulemaking. Each State agency administering a benefit program subject to this Act shall adopt rules necessary to implement this Act.

Section 30. Conflict with federal law. If any provision of this Act conflicts with federal law with respect to a particular program, the provision shall apply only to the extent permitted by federal law.

Section 90. The State Finance Act is amended by adding Section 5.1038 as follows:

(30 ILCS 105/5.1038 new)

Sec. 5.1038. The Work Always Pays Bridge Credit Fund.

Section 99. Effective date. This Act takes effect January 1, 2027.