State Legislative Update: Housing Mandates, Mega Projects, and Data Centers Prompt Local Control Concerns

Will County Board Legislative Committee Meeting | May 5, 2026

Article Summary
State lobbyists from Mac Strategies briefed the Will County Board Legislative Committee on the final push of the spring legislative session, highlighting concerns over Governor J.B. Pritzker’s “Build Illinois” housing plan, energy regulations, and “mega project” incentives. Committee members questioned the potential loss of local municipal control regarding zoning, accessory dwelling units, and homeowner association covenants.

State Legislative Update Key Points:

• Governor Pritzker’s housing proposals aim to overrule local zoning to allow accessory dwelling units (ADUs) and multi-family units, directly overriding municipal rules and Homeowner Association (HOA) covenants.

• Discussions are ongoing regarding a “mega project” incentive package designed to keep the Chicago Bears in Illinois, with debate centering on minimum investment thresholds.

• Data center regulations remain a focal point, balancing labor group support against environmental concerns regarding massive energy consumption.

• Pending bills could mandate county cost increases, including Senate Bill 2770, which would require the county to cover first responder health insurance deductibles at an estimated cost of $21,000.

The Will County Board Legislative Committee on Tuesday, May 5, 2026, received a detailed state legislative update indicating a contentious final month of the spring session in Springfield, with local control over zoning and housing development taking center stage.

With the May 31 session deadline looming, Matt Murphy and Ann from Mac Strategies reported that while the state budget remains “job one,” intense negotiations are surrounding housing mandates, energy grid capacity, and corporate incentives.

The most direct impact on Will County municipalities involves Governor J.B. Pritzker’s “Build Illinois” housing plan. The proposal seeks to address the state’s “missing middle” housing gap by standardizing impact fees, removing minimum parking space mandates near public transit, and forcing municipalities to allow multi-family units like duplexes and four-flats on certain lots. It also opens the door to Accessory Dwelling Units (ADUs), such as granny flats or coach houses, removing local authority to block them.

Board Member Kelly Hickey (D-Naperville) expressed immediate concern regarding how far the state intends to reach into local jurisdictions.

“Will the governor’s plan for these granny flats and such… I realize they’re going to overrule municipal control. What about HOAs?” Hickey asked.

“It will overrule those too,” Ann from Mac Strategies confirmed. “They want more housing, and if there are local rules that are generated by municipalities or other types of covenants that stand in the way of that, they want state law to trump that because they feel as though those things have stood in the way of new development.”

Ann noted that the Illinois Municipal League (IML) has pushed back vigorously, offering its own alternative housing proposal. While she does not expect the Governor’s full package to pass wholesale, she predicted some fraction of the housing mandates would advance this spring.

Energy consumption and the rapid proliferation of data centers also sparked debate. Murphy reported that the Governor has proposed a moratorium on data center tax credits to assess their impact on the state’s power grid.

“They are consuming a lot of energy at a time when Illinois law is pushing more fossil fuel carbon-emitting energy off the grid,” Murphy explained. “On the one hand, you have labor that wants to build these data centers… on the other hand, you have environmental groups that have concerns and want to slow down.”

Board Member Daniel J. Butler (R-Frankfort) questioned whether Springfield is addressing the core issue of power generation for these facilities.

“I know that we’re getting a huge crowd of these people coming in and trying to build these data centers in Illinois, and most of that is because it’s so much more profitable here,” Butler said. “Have the people in Springfield been talking about the requirement that most of the other states have, which is to provide their own energy sources?”

Murphy confirmed that requiring data centers to bring their own energy is a “cornerstone principle” for environmental groups, though a dedicated bill on the subject is unlikely to pass this month.

Lawmakers are also debating “mega project” legislation, widely viewed as a mechanism to keep the Chicago Bears from relocating to Indiana. The House passed a version featuring investment thresholds of $500 million, $250 million, and $100 million. Murphy noted that smaller central and southern Illinois communities are lobbying to keep the lower thresholds to attract regional development, while northeastern legislators argue that projects under $500 million do not qualify as “mega.” Data centers were explicitly excluded from this mega project consideration in the House version.

Vice-Chair Judy Ogalla (R-Monee) sought updates on several bills carrying potential financial burdens for the county. She specifically questioned Senate Bill 3621, which would mandate that local elected officials, including the coroner, treasurer, clerk, recorder, auditor, and circuit court clerk, be paid a salary equal to 80% of the state’s attorney’s salary.

“Why are we doing that to just take the salary situation out of the local county’s decision making?” Ogalla asked. Murphy noted the bill has bipartisan sponsorship and sits in the appropriations committee, meaning it could be rolled into a larger end-of-session budget bill.

Ogalla also highlighted Senate Bill 2770, which classifies county medical examiners and coroners as first responders and prohibits the county from imposing health insurance deductibles or co-payments on them. Ogalla estimated the mandate would result in a $21,000 annual cost to Will County. Mac Strategies confirmed the bill passed the Senate unanimously and is currently posted for a hearing in the House.