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Full Text of HB5565
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HB5565 - 104th General Assembly
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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.
LRB104 18534 HLH 31977 b
A BILL FOR
HB5565
LRB104 18534 HLH 31977 b
1
AN ACT concerning finance.
2
Be it enacted by the People of the State of Illinois,
3
represented in the General Assembly:
4
Section 5.
The Department of Commerce and Economic
5
Opportunity Law of the Civil Administrative Code of Illinois
6
is amended by adding Section 605-1119 as follows:
7
(20 ILCS 605/605-1119 new)
8
Sec. 605-1119.
Small Communities Health and Safety
9
Competitive Grant Program.
10
(a) The Small Communities Health and Safety Competitive
11
Grant Program is established as a program to be implemented
12
and administered by the Department. The program shall provide
13
grants for the purpose of facilitating upgrades to capital and
14
infrastructure in order to support the health and safety of
15
citizens of this State who reside in communities of fewer than
16
50,000 inhabitants, as determined in the most recent federal
17
decennial census.
18
(b) The Program shall be funded by the Small Communities
19
Health and Safety Competitive Grant Fund, a special fund
20
created in the State treasury. The Small Communities Health
21
and Safety Competitive Grant Fund shall receive moneys as
22
provided in Section 4 of the Build Illinois Bond Act and from
23
any other lawful source. Moneys in the Small Communities
HB5565
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LRB104 18534 HLH 31977 b
1
Health and Safety Competitive Grant Fund may be used by the
2
Department for the following purposes:
3
(1) to create and administer a statewide, competitive
4
grant program to assist units of local government with
5
populations of less than 50,000, as of the most
6
recently-reported United States decennial census, in
7
making capital and infrastructure improvements that
8
promote and support the health and safety of residents of
9
those units of local government; and
10
(2) paying for the ordinary and contingent expenses of
11
the program, including:
12
(A) outreach to eligible units of local
13
government;
14
(B) administration of the program; and
15
(C) receipt and consideration of applications for
16
grants.
17
(c) The Department shall receive and consider applications
18
from eligible units of local government. Applications shall be
19
scored on a 100-point scale based on the following criteria:
20
(1) the size of affected population, with smaller
21
units of local governments favored over larger ones (35
22
points);
23
(2) the urgency of need demonstrated by the applicant
24
(25 points);
25
(3) the existing capacity of infrastructure already on
26
hand within the jurisdiction of the applicant (15 points);
HB5565
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LRB104 18534 HLH 31977 b
1
(4) the scope of work to be undertaken by the
2
applicant (15 points); and
3
(5) the availability of matching funds to be furnished
4
by the applicant (10 points).
5
(e) No unit of local government may receive more than one
6
grant from this program annually for any single project.
7
(f) No single grant awarded under this Section shall be
8
larger than $3,000,000 unless excess funds exist in the Fund,
9
in which case existing grants may be increased by a proration
10
of the excess amount.
11
(g) No more than 5% of appropriations for this purpose may
12
be spent on administration of the program.
13
(h) The Department shall adopt rules to implement and
14
administer the program created by this Section.
15
Section 10.
The State Finance Act is amended by adding
16
Sections 5.1038 and 6z-149 as follows:
17
(30 ILCS 105/5.1038 new)
18
Sec. 5.1038.
The Small Communities Health and Safety
19
Competitive Grant Fund.
20
Section 15.
The Build Illinois Bond Act is amended by
21
changing Section 4 as follows:
22
(30 ILCS 425/4)
(from Ch. 127, par. 2804)
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LRB104 18534 HLH 31977 b
1
Sec. 4.
Purposes of Bonds.
Bonds shall be issued for the
2
following purposes and in the approximate amounts as set forth
3
below:
4
(a) $4,873,094,533 for the expenses of issuance and sale
5
of Bonds, including bond discounts, and for planning,
6
engineering, acquisition, construction, reconstruction,
7
development, improvement, demolition, and extension of the
8
public infrastructure in the State of Illinois, including: the
9
making of loans or grants to local governments for waste
10
disposal systems, water and sewer line extensions and water
11
distribution and purification facilities, rail or air or water
12
port improvements, gas and electric utility extensions,
13
publicly owned industrial and commercial sites, buildings used
14
for public administration purposes and other public
15
infrastructure capital improvements; the making of loans or
16
grants to units of local government for financing and
17
construction of wastewater facilities, including grants to
18
serve unincorporated areas; refinancing or retiring bonds
19
issued between January 1, 1987 and January 1, 1990 by home rule
20
municipalities, debt service on which is provided from a tax
21
imposed by home rule municipalities prior to January 1, 1990
22
on the sale of food and drugs pursuant to Section 8-11-1 of the
23
Home Rule Municipal Retailers' Occupation Tax Act or Section
24
8-11-5 of the Home Rule Municipal Service Occupation Tax Act;
25
the making of deposits not to exceed $70,000,000 in the
26
aggregate into the Water Pollution Control Revolving Fund to
HB5565
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LRB104 18534 HLH 31977 b
1
provide assistance in accordance with the provisions of Title
2
IV-A of the Environmental Protection Act; the planning,
3
engineering, acquisition, construction, reconstruction,
4
alteration, expansion, extension and improvement of highways,
5
bridges, structures separating highways and railroads, rest
6
areas, interchanges, access roads to and from any State or
7
local highway and other transportation improvement projects
8
which are related to economic development activities; the
9
making of loans or grants for planning, engineering,
10
rehabilitation, improvement or construction of rail and
11
transit facilities; the planning, engineering, acquisition,
12
construction, reconstruction and improvement of watershed,
13
drainage, flood control, recreation and related improvements
14
and facilities, including expenses related to land and
15
easement acquisition, relocation, control structures, channel
16
work and clearing and appurtenant work; the planning,
17
engineering, acquisition, construction, reconstruction and
18
improvement of State facilities and related infrastructure;
19
the making of Park and Recreational Facilities Construction
20
(PARC) grants; the making of grants to units of local
21
government for community development capital projects; the
22
making of grants for improvement and development of zoos and
23
park district field houses and related structures; and the
24
making of grants for improvement and development of Navy Pier
25
and related structures
; notwithstanding any other provision of
26
law, beginning in fiscal year 2027, and in each fiscal year
HB5565
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LRB104 18534 HLH 31977 b
1
thereafter, the State Comptroller shall order transferred and
2
the State Treasurer shall transfer from the Build Illinois
3
Bond Fund to the Small Communities Health and Safety
4
Competitive Grant Fund a portion of the amount specified in
5
this subsection (a) not to exceed $70,000,000
.
6
(b) $4,101,136,967 for fostering economic development and
7
increased employment and fostering the well being of the
8
citizens of Illinois through community development, including:
9
the making of grants for improvement and development of
10
McCormick Place and related structures; the planning and
11
construction of a microelectronics research center, including
12
the planning, engineering, construction, improvement,
13
renovation and acquisition of buildings, equipment and related
14
utility support systems; the making of loans to businesses and
15
investments in small businesses; acquiring real properties for
16
industrial or commercial site development; acquiring,
17
rehabilitating and reconveying industrial and commercial
18
properties for the purpose of expanding employment and
19
encouraging private and other public sector investment in the
20
economy of Illinois; the payment of expenses associated with
21
siting the Superconducting Super Collider Particle Accelerator
22
in Illinois and with its acquisition, construction,
23
maintenance, operation, promotion and support; the making of
24
loans for the planning, engineering, acquisition,
25
construction, improvement and conversion of facilities and
26
equipment which will foster the use of Illinois coal; the
HB5565
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LRB104 18534 HLH 31977 b
1
payment of expenses associated with the promotion,
2
establishment, acquisition and operation of small business
3
incubator facilities and agribusiness research facilities,
4
including the lease, purchase, renovation, planning,
5
engineering, construction and maintenance of buildings,
6
utility support systems and equipment designated for such
7
purposes and the establishment and maintenance of centralized
8
support services within such facilities; the making of grants
9
for transportation electrification infrastructure projects
10
that promote use of clean and renewable energy; the making of
11
capital expenditures and grants for broadband development and
12
for a statewide broadband deployment grant program; the making
13
of grants to public entities and private persons and entities
14
for community development capital projects; the making of
15
grants to public entities and private persons and entities for
16
capital projects in the context of grant programs focused on
17
assisting economically depressed areas, expanding affordable
18
housing, supporting the provision of human services,
19
supporting emerging technology enterprises, fostering the
20
advancement of quantum information science and technology, and
21
supporting minority owned businesses; and the making of grants
22
or loans to units of local government for Urban Development
23
Action Grant and Housing Partnership programs.
24
(c) $2,846,776,600 for the development and improvement of
25
educational, scientific, technical and vocational programs and
26
facilities and the expansion of health and human services for
HB5565
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LRB104 18534 HLH 31977 b
1
all citizens of Illinois, including: the making of grants to
2
school districts and not-for-profit organizations for early
3
childhood construction projects pursuant to Section 5-300 of
4
the School Construction Law; the making of grants to
5
educational institutions for educational, scientific,
6
technical and vocational program equipment and facilities; the
7
making of grants to museums for equipment and facilities; the
8
making of construction and improvement grants and loans to
9
public libraries and library systems; the making of grants and
10
loans for planning, engineering, acquisition and construction
11
of a new State central library in Springfield; the planning,
12
engineering, acquisition and construction of an animal and
13
dairy sciences facility; the planning, engineering,
14
acquisition and construction of a campus and all related
15
buildings, facilities, equipment and materials for Richland
16
Community College; the acquisition, rehabilitation and
17
installation of equipment and materials for scientific and
18
historical surveys; the making of grants or loans for
19
distribution to eligible vocational education instructional
20
programs for the upgrading of vocational education programs,
21
school shops and laboratories, including the acquisition,
22
rehabilitation and installation of technical equipment and
23
materials; the making of grants or loans for distribution to
24
eligible local educational agencies for the upgrading of math
25
and science instructional programs, including the acquisition
26
of instructional equipment and materials; miscellaneous
HB5565
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LRB104 18534 HLH 31977 b
1
capital improvements for universities and community colleges
2
including the planning, engineering, construction,
3
reconstruction, remodeling, improvement, repair and
4
installation of capital facilities and costs of planning,
5
supplies, equipment, materials, services, and all other
6
required expenses; the making of grants or loans for repair,
7
renovation and miscellaneous capital improvements for
8
privately operated colleges and universities and community
9
colleges, including the planning, engineering, acquisition,
10
construction, reconstruction, remodeling, improvement, repair
11
and installation of capital facilities and costs of planning,
12
supplies, equipment, materials, services, and all other
13
required expenses; and the making of grants or loans for
14
distribution to local governments for hospital and other
15
health care facilities including the planning, engineering,
16
acquisition, construction, reconstruction, remodeling,
17
improvement, repair and installation of capital facilities and
18
costs of planning, supplies, equipment, materials, services
19
and all other required expenses.
20
(d) $277,873,000 for protection, preservation, restoration
21
and conservation of environmental and natural resources,
22
including: the making of grants to soil and water conservation
23
districts for the planning and implementation of conservation
24
practices and for funding contracts with the Soil Conservation
25
Service for watershed planning; the making of grants to units
26
of local government for the capital development and
HB5565
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LRB104 18534 HLH 31977 b
1
improvement of recreation areas, including planning and
2
engineering costs, sewer projects, including planning and
3
engineering costs and water projects, including planning and
4
engineering costs, and for the acquisition of open space
5
lands, including the acquisition of easements and other
6
property interests of less than fee simple ownership; the
7
making of grants to units of local government through the
8
Illinois Green Infrastructure Grant Program to protect water
9
quality and mitigate flooding; the acquisition and related
10
costs and development and management of natural heritage
11
lands, including natural areas and areas providing habitat for
12
endangered species and nongame wildlife, and buffer area
13
lands; the acquisition and related costs and development and
14
management of habitat lands, including forest, wildlife
15
habitat and wetlands; and the removal and disposition of
16
hazardous substances, including the cost of project
17
management, equipment, laboratory analysis, and contractual
18
services necessary for preventative and corrective actions
19
related to the preservation, restoration and conservation of
20
the environment, including deposits not to exceed $60,000,000
21
in the aggregate into the Hazardous Waste Fund and the
22
Brownfields Redevelopment Fund for improvements in accordance
23
with the provisions of Titles V and XVII of the Environmental
24
Protection Act.
25
(e) The amount specified in paragraph (a) above shall
26
include an amount necessary to pay reasonable expenses of each
HB5565
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LRB104 18534 HLH 31977 b
1
issuance and sale of the Bonds, as specified in the related
2
Bond Sale Order (hereinafter defined).
3
(f) Any unexpended proceeds from any sale of Bonds which
4
are held in the Build Illinois Bond Fund may be used to redeem,
5
purchase, advance refund, or defease any Bonds outstanding.
6
(Source: P.A. 103-7, eff. 7-1-23; 103-591, eff. 7-1-24; 104-8,
7
eff. 1-1-26
.)
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