From Proposal to Passage: What the Final FY2027 Budget Means for Illinois I/DD Services

three women smiling at Search360 day program for adults with I/DD

In April, we shared a preview of the FY2027 Illinois budget and what it could mean for the intellectual and developmental disabilities (I/DD) community.

In the early morning hours of May 31, the General Assembly finalized that budget, meeting the constitutional deadline and closing out this year’s spring legislative session.

Now that the process has concluded, it is worth taking a moment to reflect on where things landed and what it means moving forward.

A Budget That Holds Its Course

The final FY2027 budget largely reflects what was proposed earlier this year.

That outcome was not guaranteed. Updated revenue forecasts tightened the state’s fiscal outlook, creating a challenging environment for lawmakers as they worked to close a significant budget gap. Within that environment, there was limited room for expansion and a clear need to stay within narrow margins.

Even so, Illinois maintained its commitment to community‑based I/DD services. That consistency matters, particularly in a year shaped by broader economic and federal uncertainty.

At a high level, the budget reinforces a steady path forward, even as longer‑term questions remain open.

Where Key Priorities Landed

DSP Wages

The final budget includes the proposed $0.60 per hour increase for Direct Support Professionals, bringing the state’s reimbursed wage level to approximately $21.90 per hour, or about 146 percent of Illinois’ minimum wage.

Direct Support Professionals are the workforce that make community-based services possible, supporting people in their homes and communities every day. Strengthening wages has been a multi-year priority tied to the state’s Guidehouse Rate Study, which identified 150 percent of minimum wage as the benchmark needed for a stable workforce.

This year’s increase continues that progress and is paired with a return to a 50/50 pass-through model, allowing providers flexibility in how a portion of the increase is applied to support recruitment and retention needs.

There is also an important signal looking ahead. State leaders have indicated an intent to propose an additional $0.60 per hour increase in FY2028, which would fully achieve the Guidehouse benchmark if realized.

As we noted in April, the broader reality remains. While progress continues, the full benchmark has not yet been reached, and workforce stability will continue to depend on sustained investment over time.

24-Hour Staffing and the Zero-Hour Model

The transition toward a 24-hour staffing model, often referred to as the zero-hour model, is also moving forward.

Historically, the system funded only 19 hours of daily staffing in residential settings, based on the assumption that individuals would leave their home for day services. The zero-hour model shifts this approach by funding staffing 24 hours per day, 7 days per week, recognizing that support needs do not follow a fixed schedule.

This is a significant structural change and one that has been discussed for many years.

The direction is clear. The details are still developing.

A central focus throughout the spring was how this transition would affect other supports, particularly daytime services delivered in the home. Based on final budget outcomes and commitments from state leaders, the transition is expected to be implemented in a way that maintains service hours and avoids reductions in support tied to this change.

As with any structural shift of this size, the practical impact will depend on implementation details that will continue to take shape over time.

At Home Day Services (37U)

For now, At Home Day Services, known as 37U, remain in place.

37U supports structured, individualized daytime programming for people who receive services in their homes, often due to aging, health needs, or personal preference. It plays a distinct role in ensuring people have access to meaningful daytime activity and individualized supports.

This was an area of focus throughout the budget process, particularly in relation to the transition to a 24-hour staffing model.

The final outcome provides important clarity. State leaders have indicated that the move to the zero-hour model will be implemented in a way that preserves access to daytime supports, including those delivered through 37U.

This provides near-term stability for people who rely on these services and for the providers who deliver them.

At the same time, 37U remains part of broader, ongoing system discussions. That creates a dynamic where short-term clarity exists, while longer-term direction continues to evolve.

What This Moment Represents

Taken together, the FY2027 budget reflects a system that is moving forward with intention, but within constraints.

This was a difficult budget year. Lawmakers were navigating a significant deficit, tightening revenue projections, and continued uncertainty at the federal level. Within that context, maintaining progress on workforce investment, service stability, and system flexibility is meaningful.

At the same time, the margin for new investment is tight. Many of the most important conversations are shifting from what is funded to how it is implemented.

That is where the next phase of this work takes place.

Looking Ahead

There are two themes that will shape what comes next.

First is implementation. Policy direction is only one part of the equation. How changes are carried out, how rates are structured, and how flexibility is preserved will determine the real impact on providers and the people they support.

Second is uncertainty beyond the state level. Federal policy discussions continue to evolve, and their potential impact on Medicaid and related supports remains unclear.

Together, these factors reinforce the importance of staying engaged and continuing to share real-world perspectives as decisions take shape.

Join the Conversation

As with every budget cycle, the most meaningful insight comes from lived experience.

If you support someone with I/DD, work as a DSP, or are connected to disability services through your work or advocacy, your perspective matters.

What feels more stable today than it did a year ago?
Where do you still see gaps or uncertainty?

These conversations help shape what comes next and ensure that progress continues to reflect the realities of the people and communities at the center of this work.

Keystone Alliance is an ecosystem of nonprofit organizations, services, and initiatives, working together and with the field as a collaborative force to help nonprofits strengthen and sustain their missions.

We support our family of organizations and the larger nonprofit community through Keystone Shared Services, our shared back office platform, and Mission + Strategy, our strategic consulting division.

Let’s talk to see how we can help create capacity, sustainability, and collaboration for your organization.