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.


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A BILL FOR
 
HB5377LRB104 19345 SPS 32792 b

1    AN ACT concerning public aid.
 
2    Be it enacted by the People of the State of Illinois, 
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the Work 
5Always Pays Act.
 
6    Section 5. Definitions. As used in this Act: 
7    "Earned income" means wages, salaries, tips, commissions, 
8and other compensation received from employment or 
9self-employment, as determined under applicable program rules. 
10    "Household" has the meaning set forth in the applicable 
11State-administered benefit program. 
12    "Net household resources" means the combined total of 
13earned income and the cash value of State-administered 
14benefits received by a household. 
15    "State-administered benefit program" means: 
16        (1) the Supplemental Nutrition Assistance Program; 
17        (2) the Temporary Assistance for Needy Families 
18    Program; 
19        (3) the Child Care Assistance Program; 
20        (4) medical assistance programs, including Medicaid; 
21    and 
22        (5) the Low-Income Home Energy Assistance Program.
 
 
 
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1    Section 10. Benefit reduction cap. Notwithstanding any 
2other law, a State-administered benefit program shall not 
3reduce benefits by more than $0.50 for each $1.00 increase in a 
4household's earned income.
 
5    Section 15. Bridge credit program. 
6    (a) If, despite the benefit reduction cap set forth in 
7Section 10, an increase in earned income results in a 
8reduction of net household resources compared to the level in 
9effect immediately prior to the increase, then the household 
10shall be eligible for a bridge credit. The bridge credit shall 
11be provided for a period of 6 months following the date of the 
12increase in earned income. The amount of the bridge credit 
13shall equal the difference between: (i) the household's net 
14household resources immediately prior to the increase in 
15earned income; and (ii) the household's net household 
16resources after the increase in earned income and 
17corresponding benefit adjustments. 
18    (b) Each State agency administering a State-administered 
19benefit program shall establish procedures for the calculation 
20and issuance of bridge credits. A bridge credit shall be 
21issued upon a determination by the State agency that a 
22household is eligible for a bridge credit in accordance with 
23subsection (a).
24    (c) The Work Always Pays Bridge Credit Fund is created as a 
25special fund in the State treasury. Moneys in the Fund shall be 
 
 
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1used exclusively for the purpose of providing Bridge Credits 
2under this Section and for administrative costs incurred by 
3State agencies in implementing this Act.
 
4    Section 20. Earnings buffer period. A household that 
5experiences an increase in earned income shall be subject to a 
690-day earnings buffer period. During the earnings buffer 
7period, benefits under a State-administered benefit program 
8shall remain at the level in effect immediately prior to the 
9increase in earned income. 
 
10    Section 25. Rulemaking. Each State agency administering a 
11benefit program subject to this Act shall adopt rules 
12necessary to implement this Act. 
 
13    Section 30. Conflict with federal law. If any provision of 
14this Act conflicts with federal law with respect to a 
15particular program, the provision shall apply only to the 
16extent permitted by federal law.
 
17    Section 90. The State Finance Act is amended by adding 
18Section 5.1038 as follows:
 
19    (30 ILCS 105/5.1038 new)
20    Sec. 5.1038. The Work Always Pays Bridge Credit Fund.
 
21    Section 99. Effective date. This Act takes effect January 
 
 
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11, 2027.