SB 1237 - Current law imposes a graduated income tax rate and authorizes reductions in the top rate of income tax contingent on certain state revenue collections, with an eventual top rate of 4.5%. This act provides that, for all tax years beginning on or after January 1, 2027, there shall be a flat income tax rate of 4% on all taxable income. This act also provides for additional reductions in the rate of tax until the income tax is eliminated. The reductions shall be equal to 0.1% and shall occur when the amount of net general revenue collected in the previous fiscal year exceeds the highest amount of net general revenue collected in any of the three fiscal years prior to such fiscal year by at least $120 million. (Section 143.011) Current law also authorizes an income tax deduction for a portion of federal income taxes paid. This act eliminates such deduction beginning with the 2027 tax year. (Section 143.171) This act is identical to SB 5 (2025 First Extraordinary Session) and is similar to SB 220 (2025). JOSH NORBERG

2026 Regular Session Introduced by Nick Schroer

SB 1237 funds Illinois free and charitable clinics with $9 million to provide medical, behavioral, oral care, vaccines, and related services to uninsured/underinsured residents.

Second Read and Referred S Economic and Workforce Development Committee

Summary — SB 1237 ($PUBLIC HEALTH‑CLINICS)

Status snapshot
- Bill number: SB 1237 (Illinois)
- Introduced: January 24, 2025 (Sen. Karina Villa)
- Effective date (if enacted): July 1, 2025
- Fiscal action: Appropriates funds from the General Revenue Fund
- Companion: HB 2525

Note: the source document includes unrelated text from similarly numbered bills in other states (Arizona). This summary focuses on the Illinois measure titled and summarized below.

Purpose and intent
- Provide continued state funding to support free and charitable clinics in Illinois that serve uninsured or underinsured people with acute and chronic health needs.
- Strengthen access to a range of health services through grants and expense support to the Illinois Association of Free and Charitable Clinics (IAFCC).

Key provisions
- Appropriation: $9,000,000 (nine million dollars) is appropriated from the General Revenue Fund to the Illinois Department of Public Health (IDPH).
- Use of funds: The monies are designated for continued funding to the Illinois Association of Free and Charitable Clinics for grants and other expenses of free and charitable clinics. Permitted uses include (explicit and illustrative list as in bill):
- Medical health care
- Behavioral health care
- Oral health care
- Outreach and health education
- Screening and prevention services
- Vaccinations and testing
- Medication and related expenses
- Care coordination and referrals for uninsured or underinsured individuals living with acute and chronic conditions
- Administration: Funds are routed to IDPH for continued funding to the IAFCC; the bill does not in the text provided include additional administrative rules, matching requirements, or multi‑year authorization language.
- Effective date: The act takes effect July 1, 2025.

Who is affected / likely impact
- Direct recipients: Illinois Association of Free and Charitable Clinics and the network of free/charitable clinics that receive grants or expense support through the IAFCC.
- Beneficiaries: Uninsured and underinsured Illinois residents who rely on free and charitable clinics for primary care, behavioral health, oral health, preventive services, vaccinations, testing, and medications.
- State fiscal: One‑time (or single fiscal year, as drafted) appropriation of $9 million from the General Revenue Fund; impacts FY2026 budget (effective July 1, 2025).
- Administrative: Illinois Department of Public Health will be the receiving agency to distribute the funds (per appropriation language).

Procedural history (selected)
- Filed in Senate: 01/24/2025
- Referred to Assignments and to Appropriations — Health & Human Services (per chamber process)
- Listed as effective July 1, 2025 (if enacted)

Observations and open details
- The bill text specifies the appropriation amount and broad allowable uses but does not include detailed grant program rules, reporting requirements, or sunset/multi‑year funding language in the excerpt provided.
- Implementation specifics (grant allocations, application criteria, and oversight) would be determined by IDPH and/or subsequent administrative guidance or statutory amendments not included here.