State could reimburse local governments for 2026 disaster costs if funded

The Illinois Emergency Management Agency would award grants to reimburse local governments for disaster relief and restoration costs. The grants would cover local governments in Alexander, Champaign, Cook, DuPage, Ford, Fulton, Kane, Lake, La Salle, Marshall, McLean, Pulaski, Tazewell, Vermilion, and Will Counties, for costs tied to the disaster declared on August 18, 2026. The grants depend on lawmakers providing money through an appropriation. Applicants would need to submit invoices, show the damage came from the August 18 disaster and not unrelated events, and show the money would serve a public purpose. The agency would set priorities for awarding grants. The grant program would operate during Fiscal Years 2027 and 2028.

The Illinois Emergency Management Agency and Office of Homeland Security could use money from the Budget Stabilization Fund for the grants. This authority would apply to the grants for local governments responding to the August 18, 2026 disaster. The agencies could spend only the amounts lawmakers approve through an appropriation. Money spent under this authority would not have to be repaid to the fund. The authority would apply only during Fiscal Years 2027 and 2028.

The Illinois Emergency Management Agency and Office of Homeland Security could adopt emergency rules to carry out the grant program. The agencies would use the emergency rule process allowed under the Illinois Administrative Procedure Act. The emergency-rule authority would end two years after the bill takes effect.