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Illinois General Assembly - Full Text of HB5160

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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB5160

Introduced 2/10/2026, by Rep. Joyce Mason

SYNOPSIS AS INTRODUCED:

30 ILCS 105/5.1038 new
105 ILCS 5/27A-11.5

Amends the Charter Schools Law of the School Code. Creates the
State-Authorized Charter School Fund. Provides that funds appropriated
from the General Revenue Fund, the Education Assistance Fund, or the
Common School Fund and all moneys received by the State Board of Education
from a private source for the purposes of the State-Authorized Charter
School Fund shall be deposited into the State-Authorized Charter School
Fund and the moneys in the State-Authorized Charter School Fund shall be
used, subject to appropriation, by the State Board for equal distribution
among State Board-authorized charter schools for school expenses. Provides
that a school district with a State-authorized charter school may not use
any funds from its evidence-based funding for that charter school's
expenses and a school district with a State Board-authorized charter
school must use funds from the State-Authorized Charter School Fund for
that charter school's expenses instead. Makes a conforming change in the
State Finance Act. Effective July 1, 2026.
LRB104 17627 LNS 31058 b

A BILL FOR

HB5160
LRB104 17627 LNS 31058 b
1

AN ACT concerning education.

2

Be it enacted by the People of the State of Illinois,
3
represented in the General Assembly:

4

Section 5.
The State Finance Act is amended by adding
5
Section 5.1038 as follows:

6

(30 ILCS 105/5.1038 new)
7

Sec. 5.1038.
The State Authorized Charter School Fund.

8

Section 10.
The School Code is amended by changing Section
9
27A-11.5 as follows:

10

(105 ILCS 5/27A-11.5)
11

Sec. 27A-11.5.
State financing.
The State Board shall make
12
the following funds available to school districts and charter
13
schools:
14

(1) From a separate appropriation made to the State
15

Board for purposes of this subdivision (1), the State
16

Board shall make transition impact aid available to school
17

districts that approve a new charter school. The amount of
18

the aid shall equal 90% of the per capita funding paid to
19

the charter school during the first year of its initial
20

charter term, 65% of the per capita funding paid to the
21

charter school during the second year of its initial term,

HB5160
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LRB104 17627 LNS 31058 b
1

and 35% of the per capita funding paid to the charter
2

school during the third year of its initial term. This
3

transition impact aid shall be paid to the local school
4

board in equal quarterly installments, with the payment of
5

the installment for the first quarter being made by August
6

1st immediately preceding the first, second, and third
7

years of the initial term. The district shall file an
8

application for this aid with the State Board in a format
9

designated by the State Board. If the appropriation is
10

insufficient in any year to pay all approved claims, the
11

impact aid shall be prorated. If any funds remain after
12

these claims have been paid, then the State Board may pay
13

all other approved claims on a pro rata basis. Transition
14

impact aid shall be paid for charter schools that are in
15

the first, second, or third year of their initial term.
16

Transition impact aid shall not be paid for any charter
17

school that is proposed and created by one or more boards
18

of education, as authorized under subsection (b) of
19

Section 27A-7.
20

(2) From a separate appropriation made for the purpose
21

of this subdivision (2), the State Board shall make grants
22

to charter schools to pay their start-up costs of
23

acquiring educational materials and supplies, textbooks,
24

electronic textbooks and the technological equipment
25

necessary to gain access to and use electronic textbooks,
26

furniture, and other equipment or materials needed during

HB5160
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LRB104 17627 LNS 31058 b
1

their initial term. The State Board shall annually
2

establish the time and manner of application for these
3

grants, which shall not exceed $250 per student enrolled
4

in the charter school.
5

(3) The Charter Schools Revolving Loan Fund is created
6

as a special fund in the State treasury. Federal funds,
7

such other funds as may be made available for costs
8

associated with the establishment of charter schools in
9

Illinois, and amounts repaid by charter schools that have
10

received a loan from the Charter Schools Revolving Loan
11

Fund shall be deposited into the Charter Schools Revolving
12

Loan Fund, and the moneys in the Charter Schools Revolving
13

Loan Fund shall be appropriated to the State Board and
14

used to provide interest-free loans to charter schools.
15

These funds shall be used to pay start-up costs of
16

acquiring educational materials and supplies, textbooks,
17

electronic textbooks and the technological equipment
18

necessary to gain access to and use electronic textbooks,
19

furniture, and other equipment or materials needed in the
20

initial term of the charter school and for acquiring and
21

remodeling a suitable physical plant, within the initial
22

term of the charter school. Loans shall be limited to one
23

loan per charter school and shall not exceed $750 per
24

student enrolled in the charter school. A loan shall be
25

repaid by the end of the initial term of the charter
26

school. The State Board may deduct amounts necessary to

HB5160
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LRB104 17627 LNS 31058 b
1

repay the loan from funds due to the charter school or may
2

require that the local school board that authorized the
3

charter school deduct such amounts from funds due the
4

charter school and remit these amounts to the State Board,
5

provided that the local school board shall not be
6

responsible for repayment of the loan. The State Board may
7

use up to 3% of the appropriation to contract with a
8

non-profit entity to administer the loan program.
9

(3.5) The State-Authorized Charter School Fund is
10

created as a special fund in the State treasury. Funds
11

appropriated from the General Revenue Fund, the Education
12

Assistance Fund, or the Common School Fund and all moneys
13

received by the State Board from a private source for the
14

purposes of the State-Authorized Charter School Fund shall
15

be deposited into the State-Authorized Charter School
16

Fund, and the moneys in the State-Authorized Charter
17

School Fund shall be used, subject to appropriation, by
18

the State Board for equal distribution among charter
19

schools authorized by the State Board for school expenses.
20

However, moneys from the State-Authorized Charter School
21

Fund may, if needed, be transferred to the General Revenue
22

Fund, the Education Assistance Fund, or the Common School
23

Fund. A school district with a State Board-authorized
24

charter school may not use any funds from its
25

evidence-based funding under Section 18-8.15 for that
26

charter school's expenses. Instead, a school district with

HB5160
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LRB104 17627 LNS 31058 b
1

a State Board-authorized charter school must use funds
2

from the State-Authorized Charter School Fund for that
3

charter school's expenses.

4

(4) A charter school may apply for and receive,
5

subject to the same restrictions applicable to school
6

districts, any grant administered by the State Board that
7

is available for school districts.
8

If a charter school fails to make payments toward
9
administrative costs, the State Board may withhold State funds
10
from that school until it has made all payments for those
11
costs.
12
(Source: P.A. 103-175, eff. 6-30-23; 103-605, eff. 7-1-24.)

13

Section 99.
Effective date.
This Act takes effect July 1,
14
2026.

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