Pritzker demands answers after feds delay $1.88 billion in promised funds to Illinois

SPRINGFIELD, Ill. - Illinois Gov. JB Pritzker is calling out the federal government for holding back $1.88 billion in funds that were already approved by Congress and signed into law.

In a letter to the White House Office of Management and Budget, Pritzker said state agencies, small businesses, nonprofits, and everyday Illinoisans are having trouble accessing the federal funding they were promised.

He added that the uncertainty surrounding these funds, along with the lack of clarity from the administration, has left many organizations with no choice but to pause operations, cancel projects, or even lay off staff.

In his letter, Pritzker urged the federal government to uphold its financial commitments to Illinois, stressing that these funds were part of a contractual agreement.

The backstory:

On Jan. 27, the White House Office of Management and Budget issued a directive pausing all federal financial disbursements. 

The next day, Pritzker’s office began receiving reports of system outages and lockouts that prevented grantees from accessing funding. Attempts to get answers from federal officials were reportedly ignored, Pritzker said.

Since then, many agencies and organizations—ranging from childcare providers and educational institutions to small businesses and economic development programs—have struggled with uncertainty. 

Some have had to pause operations, cancel projects, or lay off staff due to the lack of funding, according to the governor's office.

By the numbers:

The following is a breakdown of the impacted funding:

• $692 million: Federal funds already obligated but not yet received by nine Illinois agencies, boards, and commissions.
• $1.19 billion: Federal funds anticipated or awarded but not yet obligated, leading to a pause in programs across 10 state agencies.
• $1.88 billion: Total amount of impacted federal funds affecting 14 state agencies, including the Illinois Department of Commerce and Economic Opportunity, Illinois Department of Transportation, and the Illinois State Board of Education.

What we don't know:

The federal government has not clarified why the funds remain frozen despite court rulings against the pause.

It is also unclear when or if the funds will be fully restored.

What's next:

Pritzker is demanding a response from the federal government by March 4. 

His letter outlines key questions, including:

• Why didn’t federal funding resume after the rescission of the OMB memorandum?
• What steps are being taken to ensure compliance with court orders regarding the disbursement of funds?
• What legal basis remains for withholding funds after two judges issued temporary restraining orders?
• How is the government identifying and assisting grant recipients negatively affected by the delay?

"If the Trump Administration is unable to follow the law and uphold their end of the deal, the people of our state deserve to know," Pritzker wrote.