SB2883 104TH GENERAL ASSEMBLY

LRB104 17108 KTG 30527 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB2883

Introduced 1/16/2026, by Sen. Graciela Guzmán

SYNOPSIS AS INTRODUCED:

New Act

Creates the Human Services Workforce Sustainability Act. Requires the Departments of Human Services, Children and Family Services, Juvenile Justice, and Public Health, and other specified State agencies, to complete, by June 30, 2027, a look-back calculation for each contracted human services organization that compares the funding amount awarded to the human services organization in State fiscal years 2026 and 2021 in order to identify the percentage change in funding, if any, to the human services organization between those fiscal years. Provides that based on the look-back calculations, each State agency shall identify the total aggregate amount of additional appropriations needed to ensure that grant amounts awarded by the State agency in State Fiscal Year 2028 are at least 25% more than the grant amounts awarded to grantees in State Fiscal Year 2021. Contains provisions concerning implementation of increased grant funding, subject to appropriation; additional percentage increases in grants amounts beginning in State Fiscal Year 2029; expenditure and certification requirements on contracted human services organizations that receive increased grant funding; oversight by the Department of Central Management Services; the adoption of administrative rules; and other matters. Effective July 1, 2026.

A BILL FOR

AN ACT concerning State government.

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 Human Services Workforce Sustainability Act.

Section 5. Findings and purpose. The purpose of this Act is to invest in community-based human service providers so they can pay fair, competitive wages to their workers. Building on House Resolution 151 of the 104th General Assembly, this Act supports the more than 350,000 historically underpaid human service workers who provide vital services to all communities across Illinois. Research conducted by Illinois Partners for Human Service found that 82% of frontline human service workers self-report not making a living wage. Providers overwhelmingly report that these low wages are a result of low reimbursement rates and insufficient State contracts that do not keep up with the cost of doing business. Further research from the Illinois Partners' "Essential Expenses" report found that the actual cost of overhead expenses is on average 29% of their organizational budgets, leaving organizations to not only face low-wage opportunities for their workers but also key administrative costs hanging in the balance. As reported by the U.S. Bureau of Labor Statistics, the inflation rate of the Consumer Price Index between July 2020 and July 2025 is 24.7%, situating community-based providers in an environment where their funding today needs to be at least 25% more than what it was in 2020 to grow and sustain the human services workforce. This Act honors their contributions and helps ensure they can thrive in the communities they serve.

Section 10. Definitions. As used in this Act:

"Consumer Price Index" or "CPI" means the index published by the Bureau of Labor Statistics of the United States Department of Labor that measures the average change in prices of goods and services purchased by all urban consumers, United States city average, all items, 1982-84 = 100.

"Grantee" or "subgrantee" means an eligible human services organization that receives grant funding or reimbursements, including those reimbursed via rate-based structures, from an eligible State agency.

"Human services organization" means a private nonprofit organization that primarily operates for the purposes of providing direct or indirect services in the areas of child care and early education services, community-integrated living arrangements, domestic violence prevention and recovery, foster care services, health care and wellness services, homeless and supportive housing services, immigrant supportive services, intellectual or developmental disability services, mobile crisis response, older adult services, workforce development, youth services, mental services, and behavioral health and substance use services. "Human services organizations" may also include any nonprofit organizations not captured in the fields listed in the previous sentence that provide services that ensure individuals have the essential elements to build and maintain physical, emotional, and economic well-being at every phase of life, as indicated by providing examples of current or completed successful programs that satisfy this definition. "Human services organization" does not include colleges and universities, local government agencies, correctional centers and county jails, non-safety net hospitals, State police or municipal police departments, or any public or private preschools, elementary schools, or high schools.

"Human services professional" means any individual employed by a human services organization that contracts with, receives funding from, or is grant-funded by a State agency for the purposes of providing direct or indirect services that ensure that individuals have the essential elements to build and maintain physical, emotional, and economic well-being at every phase of life.

"State agency" means the Department of Human Services, the Department of Children and Family Services, the Department of Juvenile Justice, the Department on Aging, the Department of Public Health, the Department of Commerce and Economic Opportunity, the Illinois Criminal Justice Information Authority, the Department of Early Childhood, and the Illinois State Board of Education.

Section 15. Establishing minimum grant levels.

(a) By June 30, 2027, each State agency must complete a look-back calculation for each grantee and subgrantee that compares the funding amount awarded to the grantee or subgrantee in State fiscal years 2026 and 2021 in order to identify the percentage change in funding, if any, to the grantee or subgrantee between those fiscal years.

(b) Based on the look-back calculations required under subsection (a), each State agency shall identify the total aggregate amount of additional appropriations needed to ensure that grant amounts awarded by the State agency in State Fiscal Year 2028 are at least 25% more than the grant amounts awarded to grantees and subgrantees in State Fiscal Year 2021.

(c) By October 1, 2027, each State agency shall make available to the public, upon request, the look-back calculations and additional appropriation amounts identified in subsections (a) and (b).

Section 20. Implementation.

(a) The calculations and findings under Section 15 shall inform each State agency on the percentage increase in funding each grantee and subgrantee must receive in State Fiscal Year 2028 to ensure the total grant amount a grantee or subgrantee receives is (i) at least 25% higher than the grant amount awarded to the grantee or subgrantee in State Fiscal Year 2021 and (ii) no less than the grant amount awarded to the grantee or subgrantee in State Fiscal Year 2027.

(b) Beginning in State Fiscal Year 2029, and in each State fiscal year thereafter, all grantees and subgrantees shall receive the same grant amount it received in the previous State fiscal year, plus the greater of:

(1) a 3% increase; or

(2) the percentage increase in the Consumer Price Index during the 12-month calendar year preceding the grant year.

(c) Nothing in this Section prohibits a State agency from increasing a grantee's or subgrantee's grant amount for State Fiscal Year 2027, and every State fiscal year thereafter, above the 25% minimum grant increase required under subsection (b) of Section 15 and subsection (a) of this Section.

(d) Implementation of the grant increases required under this Act is contingent on the availability of appropriations.

Section 25. Limitations. Grantees and subgrantees shall expend a minimum of 70% of any increased grant funding they receive directly to improve the wages and benefits of their workers. For purposes of this subsection, benefits may include health insurance, retirement plans, paid time off, life and disability insurance, tuition reimbursement offerings, childcare assistance, commuter benefits, and mental health support and other wellness programs. Any remaining funds at 30% or less may be used at the discretion of the grantees and subgrantees.

Section 30. Certification. State agencies shall require each grantee and subgrantee to certify in accordance with existing budget review and reporting processes that the grantee or subgrantee used any increased grant funding it received in accordance with this Act to improve the wages and benefits of human service professionals employed by the grantee or subgrantee.

Section 35. Oversight. The Department of Central Management Services shall hire by June 30, 2027 a full-time Director of Human Services Wage Equity to:

(1) provide oversight to the implementation of this Act;

(2) support the State agencies in identifying the funding amounts necessary to comply with the requirements of Section 20; and

(3) monitor the State agencies to ensure continued compliance and implementation of the funding increases described under Section 20.

Section 40. Administration. Each State agency shall adopt rules, not inconsistent with this Act, to implement the provisions of this Act.

Section 99. Effective date. This Act takes effect July 1, 2026.