What Trump’s Tax Bill Could Mean for Illinois and Chicago Families

As Congress moves forward with President Trump’s proposed tax bill, families in Illinois—and especially in Chicago—stand to lose a lot. The sweeping measure would gut vital programs that tens of thousands rely on to survive: health care, food assistance, and college aid. For a city where 70% of Chicago Public Schools (CPS) students are covered by Medicaid and 40% of families rely on the Supplemental Nutrition Assistance Program (SNAP) benefits, the impacts would be devastating—families losing health care, food, and the support they count on every day.

Here’s what the bill would mean for Illinois and Chicago families.

1. Health Care Losses

• Over 535,000 Illinois residents would lose health coverage:

  • 335,000 lose Medicaid

  • 163,000+ lose Affordable Care Act (ACA) coverage

• New work requirements for Medicaid could cut coverage for up to 500,000 people, mostly due to paperwork and administrative hurdles.

• This directly affects schools: Roughly 235,000 Chicago Public Schools students — 70% of all CPS students — are enrolled in Medicaid and rely on it for routine checkups, mental health services, and treatment for chronic conditions.

• Chicagoans who rely on Planned Parenthood and other Medicaid-funded clinics could lose access to cancer screenings, birth control, and abortion services.

• Illinois would lose billions in federal support, potentially forcing cutbacks or closures at safety-net hospitals — especially in vulnerable neighborhoods.
  
  

2. Food Assistance Cut

• Up to 427,000 low-income Illinoisans could lose food stamps (SNAP), including families and children.

• 40% of Chicago families currently receive SNAP benefits to help cover groceries — a lifeline that would be put at risk.

• The state would need to come up with $1.2 billion to maintain current SNAP levels — a cost it likely can’t afford.

• Cuts would hit Chicago’s highest hardship neighborhoods the most, where food insecurity is already high.
  
  

3. Higher Education Cuts

• 48,700 Illinois students could lose Pell Grants entirely, and another 106,000+ could lose some aid.

• Refugees, asylum seekers, and some victims of violence could also lose access to federal student aid.

• Families in Chicago striving for college opportunity could face higher out-of-pocket costs or be forced to drop out.
  
  

4. Rising State Costs = Fewer Local Services

• By shifting more costs for Medicaid and SNAP to the state, Illinois may have to cut other services like education, housing, or public safety to balance the budget.

• Families in Chicago could see fewer services and longer wait times or closures for clinics, support programs, and more.
  
  

5. Other Impacts

• Elimination of home energy tax credits would mean higher utility bills — ending savings of up to $1,080 per year for a typical family.
  
  

Trump’s proposed bill would strip federal funding from health care, food, college, and utility assistance, hitting low- and middle-income Chicago families the hardest — especially those relying on public benefits to stay healthy, fed, and educated. It would also strain the state budget, likely resulting in even fewer services for everyone.