Whether you can believe it or not, 2025 is soon drawing to a close— and with the new year comes a host of new laws, regulations, and tax changes for Illinois residents.
From out-of-pocket limits on certain prescriptions to regulations on AI, here’s a look at the legislation that will have the greatest impact on everyday Chicagoans in 2026.
Regulations on use of artificial intelligence in hiring practices
Illinois employers will be subject to regulations on the usage of artificial intelligence (AI) in hiring practices under House Bill 3773 in 2026.
An amendment to the Employment Article of the Illinois Human Rights Act, the bill prohibits discrimination against protected classes such as race, gender, age, and/or disability through the use of predictive analytic data compiled by AI tools.
Various AI tools used in hiring practices utilize predictive analytics to forecast a potential candidate’s success in a given role.
While not inherently discriminatory, some predictive data may skew the hiring process and leave candidates of protected classes at a disadvantage.
The bill outlaws the use of AI in ways that may result in discrimination against such protected classes, according to the Illinois General Assembly (IGA).
Additionally, the bill prohibits employers from considering ZIP codes as a proxy for race in hiring decisions. The bill also mandates that employers disclose the use of AI tools in their hiring decisions to candidates.
Illinois is among the first states in the U.S. to impose regulations on the use of AI, paving the way for future legislation that protects the rights of employees.
Healthcare coverage changes
New legislation will require health insurance policies issued or renewed in 2026 to include a maximum limit on out-of-pocket costs for prescription inhalers, according to reports.
The bill also requires coverage of brand-name drugs during shortages of generic brands and limits the price of auto-injector epinephrine pen double packs to $60.
No more 1% grocery tax
The 2026 Illinois state budget (FY2026 budget) repeals the statewide 1% grocery tax, saving consumers money at checkout.
Counties and municipalities may still impose their own local 1% grocery tax ordinances, with over 600 towns voting to do so, according to reports.
Nursing Mothers in the Workplace Act
The Nursing Mothers in the Workplace Act expands protections for new working moms.
The bill requires employers to compensate mothers for necessary nursing breaks up to one year after childbirth, according to the IGA.
Under the act, employers are no longer permitted to require mothers to use paid leave hours for nursing breaks or reduce compensation in any capacity during said breaks.
For more information on Illinois legislation, visit the IGA official site.