Several new laws take effect in Illinois on July 1, 2025. Illinois’ fiscal year 2026 budget was signed by Governor JB Pritzker mid-June. The $55 billion spending plan set to take effect July 1 is the largest in state history.

Chicago Minimum Wage
Chicago workers making minimum wage are set to get a raise on July 1st. The city’s minimum wage will be $16.60 and the minimum wage for subsidized youth employment programs will be $16.50.

Gas Tax Hike
Illinois drivers should also expect a jump in gas prices. The gas tax is going up to 48.3 cents per gallon on Tuesday. The new hike gives Illinois the second-highest gas tax rate in the country.

Other Laws Signed by Gov. Pritzker

On Monday, Pritzker took action on multiple bills. The following will be effective July 1, 2025:

SB0028: Amends the School Code. In a provision regarding an optional alternative evaluative dismissal process for teacher evaluations, removes the definition of and references to “student growth components.”

SB0852: Eliminates failure-to-appear driver license suspensions for minor traffic offenses that only carry a fine, but allows a failure-to-appear license suspension for traffic offenses punishable by imprisonment or when the incident involved a fatality.