Chicago Mayor Proposes Food Tax Amid Fiscal Concerns

On Tuesday, Mayor Brandon Johnson of Chicago suggested implementing a 1% tax on food items to address the city’s significant budget deficit.

Johnson’s budget team convened with the Finance Committee: Subcommittee on Revenue to discuss the approaching expiration of Illinois’ grocery tax, set to end on January 1, 2026. The city has until October 1st to approve a new tax to ensure a steady flow of revenue.

During the meeting, Budget Director Annette Guzman stressed the necessity of the proposed tax, cautioning that its absence could lead to cuts in services and an increase in the deficit.

“If that tax expires in 2026, it will result in an estimated loss of $80 million in corporate funds next year alone, worsening the current deficit of over $1 billion,” Guzman pointed out. She noted that many municipalities in Illinois, from Berwin to Wheaton, have already voted to continue their grocery taxes. “If we can’t do the same, critical services might face cuts,” she added.

Guzman highlighted the potential impact on the police department, remarking, “About a third of corporate funds are allocated to the police department and its pension obligations. Without additional revenue, we may have to cut staffing, training, and community programs.”

In a press briefing, Johnson defended the proposed increase, asserting that the new tax would simply replace the existing ones rather than create new ones. “The City of Chicago doesn’t have its own food tax. We’re not generating new grocery taxes; we’re just adjusting the process for collection,” he stated.

As of now, the city council has yet to vote on a replacement tax. Mayor Andre Vasquez mentioned during the meeting that local taxes were not factored into Johnson’s 2025 budget.

“If it had been included in the budget, this process could have been much smoother,” Vasquez remarked, reflecting on the missed opportunity as many municipalities had already taken action.

Fox News Digital reached out to committee members for further comments but did not receive an immediate reply.

While the city council can approve new tax increases after the October deadline, the Financial Analysis Bureau reported that any new ordinance would not take effect until mid-2026.