HB5040

LOCAL GOV-RESTRICTED FUNDS

Chamber Passed·4/15/26

Illinois HB5040 protects restricted local government funds from garnishment, attachment, or offset.

HB5040 ensures that funds restricted for specific purposes by federal or state law, county ordinance, or grant agreement are exempt from garnishment, attachment, or any other legal process to satisfy a judgment or debt. This includes funds like motor fuel taxes and state grants allocated for specific purposes. The Comptroller is prohibited from withholding, offsetting, or applying these restricted funds against any debt, except where expressly required by federal law.

Included in complete analysis

  • Overview
  • Core Provisions
  • Implementation
  • Impact
  • Legal Framework
  • Critical Issues

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Where it stands

Last
Passed the House · Apr 15
Current
Assignments Committee
Next
Senate floor vote

Sponsors

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14
1
R
Democratic CaucusRepublican Caucus

Calendar

Mar 19

2:00 PM

House State Government Administration Committee Hearing

History

May 26

Senate

Alternate Chief Sponsor Changed to Sen. Patrick J. Joyce

May 20

Senate

Added as Alternate Co-Sponsor Sen. Chris Balkema

May 14

Senate

Added as Alternate Co-Sponsor Sen. Javier L. Cervantes