President Donald Trump’s decision to deploy the National Guard isn’t the only political storm engulfing Mayor Brandon Johnson — the mayor also faces a financial crisis that is likely to define the success of his first term and his reelection chances.
He’s one week away from unveiling a 2026 city budget that somehow manages to erase Chicago’s $1.15 billion shortfall after two straight years of deficit spending.
With municipal elections just over a year away, Johnson needs to find common ground with an emboldened City Council that forced the first-term mayor to totally rewrite his spending plan a year ago.
“I’m going to keep to my word. … I’m going to present a budget that challenges the ultra-rich to pay their fair share in taxes. I’m going to challenge our corporations, particularly those who have received tax cuts from the president, to put more skin in the game,” Johnson told reporters Tuesday at his weekly City Hall news conference.
Johnson said the urgent need for “progressive revenue” at the state and city levels has only been exacerbated by an avalanche of federal funding cuts to Chicago’s education, health care and transportation programs.
That includes last week’s unprecedented decision by the Trump administration to freeze $2.1 billion in funding for infrastructure projects, including the CTA’s Red Line extension to the Far South Side.
Johnson said he has had conversations about the need for progressive revenue with Gov. JB Pritzker, Illinois House Speaker Emanuel “Chris” Welch and Senate President Don Harmon. All three Democratic leaders “know that we’re going to have to do something to stand up to Trump’s cuts” and that something is “going to require all of us to roll up our sleeves to ensure that we’re protecting working people.”
The mayor said Pritzker spent his own money on the failed campaign for a graduated income tax, and that Welch has pushed for a “millionaire’s tax.” Legislative leaders are also “looking at a digital ad tax,” Johnson said. “There’s no secret around here of where the money is hyperconcentrated, and as Democrats, we’re either going to fold to Trump’s cuts or we are going to roll him over.”
Johnson has talked about reinstating a $4-a-month-per-employee head tax, imposing lump-sum payments in lieu of taxes for hospitals, churches and other nonprofits, and taxing digital advertising, corporate income and professional services. All but the head tax requires General Assembly approval.
The mayor acknowledged that none of that would happen during the upcoming fall veto session. His only hope is for lawmakers to close the mass transit funding deficit — which has now been reduced from $770 million to $202 million — to avoid service cuts now delayed until the last half of 2026.
“If something requires more time in order to get it done and get it done right, that just might be par for the course,” he said, making a renewed pitch for expanded home-rule authority.
Johnson has boxed himself in politically by ruling out a property tax increase. He has also slammed the door on employee layoffs and furlough days that could alienate the unions that put him in office. That sets the stage for a political showdown.
“His view is that the solutions are revenue-oriented. And I suspect the Council’s belief is ‘revenue-oriented’ is something that you go to only after you identify the efficiencies,” said Civic Federation President Joe Ferguson. “This will be a baseball game that maybe goes beyond the regular nine innings that we’re used to, and into extra innings.”
That’s precisely what happened last year.
After keeping his campaign promise to hold the line on property taxes in his first budget, precariously balanced with one-time revenue, Johnson proposed a $300 million property tax increase for 2025.
Many Chicago homeowners felt betrayed. Their City Council representatives responded by unanimously rejecting the mayor’s proposal and refusing to approve a politically unpopular property tax increase of any size. That forced Johnson to cobble together a package of $165.5 million in other fines and fees.
In the debate that preceded the 27-23 vote, allies and critics alike admonished Johnson for a series of budget missteps that created a deep distrust between the mayor and a Council determined to flex its muscle.
Johnson acknowledged the need to “find some ways in which we can make government more productive.” He said there are “some duplicate services … we can better streamline.”
But that sounded to Ferguson more like lip service.
Ferguson predicted that the City Council will be the driving force, demanding a budget that “demonstrates to taxpayers that the hard work has been done, efficiencies have been found, before going to the well on the revenue side.”