HB5565 104TH GENERAL ASSEMBLY

LRB104 18534 HLH 31977 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB5565

Introduced 2/13/2026, by Rep. Regan Deering

SYNOPSIS AS INTRODUCED:

20 ILCS 605/605-1119 new
30 ILCS 105/5.1038 new
30 ILCS 425/4	from Ch. 127, par. 2804

Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. Creates the Small Communities Health and Safety Grant Program. Provides that the Department of Commerce and Economic Opportunity shall use funds deposited into the Small Communities Health and Safety Competitive Grant Fund to create and administer a statewide, competitive grant for municipalities and units of local government with populations under 50,000 to make capital and infrastructure improvements that promote and support the health and safety of residents of those municipalities and to pay for the ordinary and contingent expenses of the program. Provides that the Department shall receive and consider applications from eligible municipalities and units of local government for grants. Amends the State Finance Act. Creates the Small Communities Health and Safety Competitive Grant Fund as a special fund in the State Treasury. Amends the Build Illinois Bond Act. Provides that, beginning in fiscal year 2027, in each fiscal year, the State Comptroller shall order transferred and the State Treasurer shall transfer from the Build Illinois Bond Fund to the Small Communities Health and Safety Competitive Grant Fund a portion of the amount set aside for capital improvements not to exceed $70,000,000.

A BILL FOR

AN ACT concerning finance.

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

Section 5. The Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois is amended by adding Section 605-1119 as follows:

(20 ILCS 605/605-1119 new)

Sec. 605-1119. Small Communities Health and Safety Competitive Grant Program.

(a) The Small Communities Health and Safety Competitive Grant Program is established as a program to be implemented and administered by the Department. The program shall provide grants for the purpose of facilitating upgrades to capital and infrastructure in order to support the health and safety of citizens of this State who reside in communities of fewer than 50,000 inhabitants, as determined in the most recent federal decennial census.

(b) The Program shall be funded by the Small Communities Health and Safety Competitive Grant Fund, a special fund created in the State treasury. The Small Communities Health and Safety Competitive Grant Fund shall receive moneys as provided in Section 4 of the Build Illinois Bond Act and from any other lawful source. Moneys in the Small Communities Health and Safety Competitive Grant Fund may be used by the Department for the following purposes:

(1) to create and administer a statewide, competitive grant program to assist units of local government with populations of less than 50,000, as of the most recently-reported United States decennial census, in making capital and infrastructure improvements that promote and support the health and safety of residents of those units of local government; and

(2) paying for the ordinary and contingent expenses of the program, including:

(A) outreach to eligible units of local government;

(B) administration of the program; and

(C) receipt and consideration of applications for grants.

(c) The Department shall receive and consider applications from eligible units of local government. Applications shall be scored on a 100-point scale based on the following criteria:

(1) the size of affected population, with smaller units of local governments favored over larger ones (35 points);

(2) the urgency of need demonstrated by the applicant (25 points);

(3) the existing capacity of infrastructure already on hand within the jurisdiction of the applicant (15 points);

(4) the scope of work to be undertaken by the applicant (15 points); and

(5) the availability of matching funds to be furnished by the applicant (10 points).

(e) No unit of local government may receive more than one grant from this program annually for any single project.

(f) No single grant awarded under this Section shall be larger than $3,000,000 unless excess funds exist in the Fund, in which case existing grants may be increased by a proration of the excess amount.

(g) No more than 5% of appropriations for this purpose may be spent on administration of the program.

(h) The Department shall adopt rules to implement and administer the program created by this Section.

Section 10. The State Finance Act is amended by adding Sections 5.1038 and 6z-149 as follows:

(30 ILCS 105/5.1038 new)

Sec. 5.1038. The Small Communities Health and Safety Competitive Grant Fund.

Section 15. The Build Illinois Bond Act is amended by changing Section 4 as follows:

(30 ILCS 425/4) (from Ch. 127, par. 2804)

Sec. 4. Purposes of Bonds. Bonds shall be issued for the following purposes and in the approximate amounts as set forth below:

(a) $4,873,094,533 for the expenses of issuance and sale of Bonds, including bond discounts, and for planning, engineering, acquisition, construction, reconstruction, development, improvement, demolition, and extension of the public infrastructure in the State of Illinois, including: the making of loans or grants to local governments for waste disposal systems, water and sewer line extensions and water distribution and purification facilities, rail or air or water port improvements, gas and electric utility extensions, publicly owned industrial and commercial sites, buildings used for public administration purposes and other public infrastructure capital improvements; the making of loans or grants to units of local government for financing and construction of wastewater facilities, including grants to serve unincorporated areas; refinancing or retiring bonds issued between January 1, 1987 and January 1, 1990 by home rule municipalities, debt service on which is provided from a tax imposed by home rule municipalities prior to January 1, 1990 on the sale of food and drugs pursuant to Section 8-11-1 of the Home Rule Municipal Retailers' Occupation Tax Act or Section 8-11-5 of the Home Rule Municipal Service Occupation Tax Act; the making of deposits not to exceed $70,000,000 in the aggregate into the Water Pollution Control Revolving Fund to provide assistance in accordance with the provisions of Title IV-A of the Environmental Protection Act; the planning, engineering, acquisition, construction, reconstruction, alteration, expansion, extension and improvement of highways, bridges, structures separating highways and railroads, rest areas, interchanges, access roads to and from any State or local highway and other transportation improvement projects which are related to economic development activities; the making of loans or grants for planning, engineering, rehabilitation, improvement or construction of rail and transit facilities; the planning, engineering, acquisition, construction, reconstruction and improvement of watershed, drainage, flood control, recreation and related improvements and facilities, including expenses related to land and easement acquisition, relocation, control structures, channel work and clearing and appurtenant work; the planning, engineering, acquisition, construction, reconstruction and improvement of State facilities and related infrastructure; the making of Park and Recreational Facilities Construction (PARC) grants; the making of grants to units of local government for community development capital projects; the making of grants for improvement and development of zoos and park district field houses and related structures; and the making of grants for improvement and development of Navy Pier and related structures; notwithstanding any other provision of law, beginning in fiscal year 2027, and in each fiscal year thereafter, the State Comptroller shall order transferred and the State Treasurer shall transfer from the Build Illinois Bond Fund to the Small Communities Health and Safety Competitive Grant Fund a portion of the amount specified in this subsection (a) not to exceed $70,000,000.

(b) $4,101,136,967 for fostering economic development and increased employment and fostering the well being of the citizens of Illinois through community development, including: the making of grants for improvement and development of McCormick Place and related structures; the planning and construction of a microelectronics research center, including the planning, engineering, construction, improvement, renovation and acquisition of buildings, equipment and related utility support systems; the making of loans to businesses and investments in small businesses; acquiring real properties for industrial or commercial site development; acquiring, rehabilitating and reconveying industrial and commercial properties for the purpose of expanding employment and encouraging private and other public sector investment in the economy of Illinois; the payment of expenses associated with siting the Superconducting Super Collider Particle Accelerator in Illinois and with its acquisition, construction, maintenance, operation, promotion and support; the making of loans for the planning, engineering, acquisition, construction, improvement and conversion of facilities and equipment which will foster the use of Illinois coal; the payment of expenses associated with the promotion, establishment, acquisition and operation of small business incubator facilities and agribusiness research facilities, including the lease, purchase, renovation, planning, engineering, construction and maintenance of buildings, utility support systems and equipment designated for such purposes and the establishment and maintenance of centralized support services within such facilities; the making of grants for transportation electrification infrastructure projects that promote use of clean and renewable energy; the making of capital expenditures and grants for broadband development and for a statewide broadband deployment grant program; the making of grants to public entities and private persons and entities for community development capital projects; the making of grants to public entities and private persons and entities for capital projects in the context of grant programs focused on assisting economically depressed areas, expanding affordable housing, supporting the provision of human services, supporting emerging technology enterprises, fostering the advancement of quantum information science and technology, and supporting minority owned businesses; and the making of grants or loans to units of local government for Urban Development Action Grant and Housing Partnership programs.

(c) $2,846,776,600 for the development and improvement of educational, scientific, technical and vocational programs and facilities and the expansion of health and human services for all citizens of Illinois, including: the making of grants to school districts and not-for-profit organizations for early childhood construction projects pursuant to Section 5-300 of the School Construction Law; the making of grants to educational institutions for educational, scientific, technical and vocational program equipment and facilities; the making of grants to museums for equipment and facilities; the making of construction and improvement grants and loans to public libraries and library systems; the making of grants and loans for planning, engineering, acquisition and construction of a new State central library in Springfield; the planning, engineering, acquisition and construction of an animal and dairy sciences facility; the planning, engineering, acquisition and construction of a campus and all related buildings, facilities, equipment and materials for Richland Community College; the acquisition, rehabilitation and installation of equipment and materials for scientific and historical surveys; the making of grants or loans for distribution to eligible vocational education instructional programs for the upgrading of vocational education programs, school shops and laboratories, including the acquisition, rehabilitation and installation of technical equipment and materials; the making of grants or loans for distribution to eligible local educational agencies for the upgrading of math and science instructional programs, including the acquisition of instructional equipment and materials; miscellaneous capital improvements for universities and community colleges including the planning, engineering, construction, reconstruction, remodeling, improvement, repair and installation of capital facilities and costs of planning, supplies, equipment, materials, services, and all other required expenses; the making of grants or loans for repair, renovation and miscellaneous capital improvements for privately operated colleges and universities and community colleges, including the planning, engineering, acquisition, construction, reconstruction, remodeling, improvement, repair and installation of capital facilities and costs of planning, supplies, equipment, materials, services, and all other required expenses; and the making of grants or loans for distribution to local governments for hospital and other health care facilities including the planning, engineering, acquisition, construction, reconstruction, remodeling, improvement, repair and installation of capital facilities and costs of planning, supplies, equipment, materials, services and all other required expenses.

(d) $277,873,000 for protection, preservation, restoration and conservation of environmental and natural resources, including: the making of grants to soil and water conservation districts for the planning and implementation of conservation practices and for funding contracts with the Soil Conservation Service for watershed planning; the making of grants to units of local government for the capital development and improvement of recreation areas, including planning and engineering costs, sewer projects, including planning and engineering costs and water projects, including planning and engineering costs, and for the acquisition of open space lands, including the acquisition of easements and other property interests of less than fee simple ownership; the making of grants to units of local government through the Illinois Green Infrastructure Grant Program to protect water quality and mitigate flooding; the acquisition and related costs and development and management of natural heritage lands, including natural areas and areas providing habitat for endangered species and nongame wildlife, and buffer area lands; the acquisition and related costs and development and management of habitat lands, including forest, wildlife habitat and wetlands; and the removal and disposition of hazardous substances, including the cost of project management, equipment, laboratory analysis, and contractual services necessary for preventative and corrective actions related to the preservation, restoration and conservation of the environment, including deposits not to exceed $60,000,000 in the aggregate into the Hazardous Waste Fund and the Brownfields Redevelopment Fund for improvements in accordance with the provisions of Titles V and XVII of the Environmental Protection Act.

(e) The amount specified in paragraph (a) above shall include an amount necessary to pay reasonable expenses of each issuance and sale of the Bonds, as specified in the related Bond Sale Order (hereinafter defined).

(f) Any unexpended proceeds from any sale of Bonds which are held in the Build Illinois Bond Fund may be used to redeem, purchase, advance refund, or defease any Bonds outstanding.

(Source: P.A. 103-7, eff. 7-1-23; 103-591, eff. 7-1-24; 104-8, eff. 1-1-26.)