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Important Legislative Update

HB 1581: Adequate and Equitable Public University Funding Act

Understanding the impact on the University of Illinois System.

The Situation

Updated: April 16, 2026

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What has happened

  • Jan 22, 2025: HB 1581, the Adequate and Equitable Public University Funding Act, introduced by Rep. Carol Ammons (D-Urbana). Companion bill SB 0013 introduced in the Senate by Majority Leader Kimberly Lightford.
  • 2025 Session: The bill failed to advance in the Senate, with heavy opposition from the U of I System. Advance Illinois and proponents spent the summer and fall building broader coalitions.
  • Mar 26, 2026: HB 1581 (House Amendment 1) passed the House Appropriations–Higher Education Committee 12–4. Eight of 12 public university presidents signed letters of support. The U of I System testified in opposition. Rep. Ammons indicated no further substantive amendments are expected.
  • Apr 14, 2026: Fiscal note filed on HB 1581 as amended.
  • Apr 16, 2026: The Coalition for Transforming Higher Education Funding held its annual advocacy day in Springfield, drawing supporters from across the state. This is their second consecutive year of organized advocacy day activity.

What Happens Next

The bill is on the House floor awaiting a vote. It could be called at any time. If it passes the House, it crosses to the Senate where it must clear committee and a floor vote before session adjourns. The Senate companion (SB 0013) provides an alternative pathway.


Key Deadlines

May 8 This happened
May 22 This happened
May 31 This happened

Frequently Asked Questions

What legislation is being proposed?

House Bill 1581 and Senate Bill 0013, known as the Adequate and Equitable Public University Funding Act, would create a new formula for distributing state funding to Illinois’ 12 public universities. The formula sets an “adequacy target” for each institution and directs new funding first to the schools furthest from that target. The bill also calls for $135 million in additional annual funding over 15 years.

Does the University of Illinois System oppose increased funding for higher education?

No. The U of I System strongly supports increased state investment in higher education. State appropriations for public universities have fallen dramatically over the past two decades, and all institutions need more support. What the System opposes is the specific formula proposed in this legislation, which would redistribute resources in ways that under-resource the state’s strongest public universities—the ones that drive workforce development, anchor the research enterprise, and power economic competitiveness.

How would this formula affect the U of I System specifically?

Under the proposed formula, the Urbana-Champaign campus is considered the most adequately funded institution at 89% of its target, meaning it would be last in line for new funding. UIC and UIS are at 56% and 57%, respectively. In practice, this means the System’s three campuses—which educate 53% of all public-university students in the state—would receive a significantly reduced share of any new investment, even as demand for their programs continues to grow.

Doesn’t the formula prevent any university from receiving less than it currently gets?

The bill’s proponents say no university would receive less than its current funding level. However, the issue is not a nominal cut—it’s relative decline. If new state dollars flow disproportionately to other institutions while the U of I System’s costs continue to rise with inflation, enrollment growth, and research demands, the practical effect is under-resourcing. A flat dollar amount in a growing-cost environment is a reduction in real terms.

Why does funding for the U of I System matter to all of Illinois?

The U of I System is the backbone of higher education in Illinois. Eighty percent of our students are Illinois residents. Seventy-four percent of our graduates stay in the state, fueling the workforce, economy, and civic life. One in 37 Illinois jobs is supported by the universities and their students. We run the state’s only public academic health system, deliver nearly $300 million in undergraduate financial aid each year, and graduate more underrepresented and first gen students than all other Illinois public universities combined. Under-resourcing the System doesn’t just affect our campuses—it ripples across the state.

What would happen if the U of I System is under-resourced?

The consequences would be far-reaching. Innovation would slow as research capacity is constrained. Healthcare workforce pipelines would narrow as fewer nurses, pharmacists, dentists, and clinicians are trained. Communities would lose access to the teachers, engineers, and research partnerships that drive local economies. Students and families could face higher tuition, fewer academic options, and reduced support services. Employers would see a smaller talent pipeline. And Illinois as a whole would risk slower growth, reduced competitiveness, and fewer opportunities for the next generation.

Doesn’t the U of I System already receive the largest share of state funding?

The System serves the largest share of students—more than half of all public-university students in Illinois—and conducts the majority of the state’s public-university research. Its share of funding reflects its scale, mission, and statewide impact. A funding formula that doesn’t account for these realities doesn’t achieve equity—it undermines the institutions on which the entire ecosystem depends.

Isn’t this similar to the evidence-based funding model used for K–12 schools?

Proponents draw that comparison, but higher education is fundamentally different from K–12. Universities have distinct missions—research, healthcare, graduate and professional education—that carry different cost structures. A formula that treats all institutions as interchangeable, without adequately accounting for scale, research intensity, and statewide reach, risks weakening the very institutions that set Illinois apart nationally.

What kind of funding approach does the U of I System support?

The System supports a funding approach that is predictable, balanced, transparent, equitable for all institutions and students, and aligned with Illinois’ long-term goals. Equity and adequacy are shared goals—but the path to achieving them should strengthen the entire public higher education ecosystem, not weaken its strongest assets.

Where does this legislation stand right now?

HB 1581 advanced out of the House Appropriations–Higher Education Committee in late March 2026 and could face a full House vote. A companion bill, SB 0013, is in the Senate. The legislation failed to advance in the Senate last year. The U of I System continues to engage with lawmakers and stakeholders on the need for a better approach.

What can I do?

Contact your state legislator and urge them to oppose this legislation in its current form. Ask them to support a funding approach that increases investment in all of Illinois’ public universities while recognizing the unique role and scale of the U of I System. Every voice matters—this is about protecting what works for Illinois and for every student.

Voices of Support

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Stakeholder Perspective

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Alumni Association 

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Take Action: Support the U of I System

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