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HB 2937

Relating to childcare subsidies within DHHR, paid based on monthly enrollment

2025 Regular Session Introduced by Kayla Young

The bill creates a state matching fund program that pairs public funds with Illinois-based minority‑led ventures and minority‑owned managers to increase inclusive investment.

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Bill Summary · HB 2937

HB 2937 — Illinois Inclusive Venture Investment Act (summary)

Status: Introduced; Rule 19(a) / Re‑referred to Rules Committee
Introduced: February 2025; Effective date (proposed): July 1, 2026
Primary sponsors: Maurice A. West, II (IL) and Brian Garcia (listed)
Related: SB 2976 (companion), HB 1585 (companion)

Note: the packet provided includes unrelated text from an Arizona holiday bill. The summary below covers the Illinois “Inclusive Venture Investment Act” text.

Main purpose

The bill establishes a state‑led Direct Matching Funds Program to leverage State‑managed funds and encourage covered institutions to invest more capital in minority‑owned venture capital firms, minority‑owned financial managers, minority‑led startups, and special investment initiatives that support underrepresented founders. The stated aim is to promote equitable access to capital and foster inclusive economic growth in Illinois.

Key definitions

  • Covered institutions: public/private universities and colleges, museums/cultural institutions, nonprofit hospitals/health systems, and public pension funds/retirement systems that meet portfolio or funding thresholds (e.g., investment portfolios exceeding $50 million; museums/nonprofits with >$25 million or >$1 million in annual funding/tax exemptions).
  • Minority‑led startup / minority‑owned financial manager / minority‑owned venture capital firm: entities at least 51% owned and controlled by one or more minority persons, women, or persons with disabilities (per the State’s Business Enterprise Act).
  • Special Investment Initiative: incubator/accelerator or similar program primarily serving underrepresented entrepreneurs.

Program mechanics & incentives

  • The State Treasurer will create and administer a Direct Matching Funds Program.
  • Matching funds: For each $1 invested by a covered institution in qualifying minority‑owned managers, VC firms, or minority‑led startups, the State Treasurer may provide up to $0.50 in matching funds from existing State‑managed funds.
  • Performance bonus: Investments that exceed annual performance benchmarks receive an additional $0.25 per $1 in matching funds.
  • Cap & residency: Matching funds are capped at $10,000,000 (subject to available State resources). Matching funds are restricted to investments in firms/businesses based in Illinois or with significant Illinois operations.
  • Allocation requirement: To participate, covered institutions must allocate at least 20% of their investment portfolios to the eligible categories (VCs, minority‑led startups, minority‑owned managers, or qualifying initiatives).
  • Underperformance rule: If a participating portfolio underperforms benchmarks for more than five years, the institution may be barred from the program until it posts performance above benchmarks for eight consecutive quarters.
  • Selection and allocation: The State Treasurer will establish rules and a review/selection process for awarding matching funds.

Administration, reporting & oversight

  • The State Treasurer verifies eligibility, distributes matching funds, publishes an annual report on funds distributed and program outcomes (jobs created, capital raised, economic impact), and may reallocate unused funds at fiscal year end.
  • Covered institutions must submit annual reports detailing endowment/portfolio size, percentage allocations to qualifying investments, and recipient diversity status and in‑state operations.
  • The bill includes provisions for transparency, oversight, compliance, confidentiality, and rulemaking authority for the Treasurer.

Who is affected

  • Directly: covered institutions (universities, large nonprofits, pension funds), minority‑owned/led firms and startups in Illinois, and state treasury operations.
  • Indirectly: entrepreneurs from underrepresented groups, local economies, beneficiaries of incubator/accelerator programs, and state taxpayers (through use of State‑managed funds).

Potential impacts and considerations

  • Positive: could increase institutional capital flows to minority managers and founders, support inclusive entrepreneurship, and create measurable local economic outcomes.
  • Tradeoffs: shifts in portfolio allocations and risk/return profiles for participating institutions; administrative and compliance burdens; fiscal exposure limited by the $10 million cap and “subject to available State resources” language.
  • Implementation depends on Treasurer rulemaking, performance benchmark definitions, and participating institutions’ willingness to reallocate assets.

For full text and legislative history, consult the bill file and companion measures (SB 2976, HB 1585).

Compiled from official sources — confirm details with the bill’s official record.

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