City of Chicago Bulletin: Feb. 27, 2025
Threat of layoffs looms
The Trump administration’s heedless slashing of federal funding that supports vital public services at the local level has been temporarily paused by the courts, but the administration appears to be pushing ahead with its planning to impose these cuts which could wreak havoc on the City of Chicago’s operations and result in the layoffs of hundreds of employees.
The Chicago Department of Public Health was one of Trump’s earliest targets. As reported in the previous bulletin, CDPH received a letter from the Centers for Disease Control and Prevention (CDC) on Jan. 29 demanding an end to all “programs, personnel, activities, or contracts” promoting diversity, equity and inclusion that are supported with funds from CDC grants.
However, following legal challenges to the Trump administration’s executive orders targeting DEI language, a federal judge placed a temporary restraining order (TRO) on those orders as the case works through the legal system.
While there is not yet a final resolution, it is all too likely that Trump will seek to find another path to cut funding to local governments. Moreover, the situation has become even more perilous in the wake of the 2025 budget plan adopted by the Republican majority in the U.S. House of Representatives, which includes steep cuts to Medicaid funding.
CDPH is not the only city department in jeopardy. Federal funding plays a role in the operations of a number of other city departments as well. Chicago received some $4 billion in federal assistance in 2024.
AFSCME is fighting the Trump cuts in the courts, in the Congress, and on the ground—joining with other concerned organizations.
No additional funding for Chicago in proposed FY26 state budget
Gov. Pritzker released his proposed budget for Fiscal Year 2026. Though the fiscal outlook was not as dire as feared, the proposed budget makes no improvements to the Local Government Distributive Fund (LGDF) funding formula for municipal governments.
While combined individual and corporate income tax revenue is estimated to increase in FY26, leading to increased appropriations to LGDF, the budget provides no additional appropriations to the city of Chicago, which is once again preparing for a difficult budget process of its own this year.
Though we are months away from the 2026 budget process, our union is already working with aldermen and the Johnson administration on revenue solutions and has made clear that we will not accept elimination of AFSCME members’ jobs.
City Council passes $830 million borrowing plan to cover infrastructure costs
The Chicago City Council voted 26-23 on Feb. 26 to adopt an $830 million borrowing plan to pay for needed infrastructure projects and repairs in the city, including road, bridge, and viaduct repair. While Chicago faces a heavy budget crunch this year, this infrastructure borrowing would not immediately be added to the city’s books, with annual $47.7 million payments beginning in two years.
When the city closed its 2025 budget gap through the elimination of vacancies rather than by increasing revenue, ratings agencies lowered Chicago’s bond ratings to only two notches above “junk” rating, meaning that the interest costs for additional borrowing are increased.
The borrowing plan underwent fierce debate in the city council before it was passed, with several alders offering amendments to lower the amount borrowed. However, none of these alternatives were adopted.
AFSCME’s political team continues to monitor the fiscal situation in the city and is pushing for solutions with aldermen and the Johnson administration that do not hinder the city’s ability to meet its commitment to city workers or the services they provide.
Chicago CARE program a major success in responding to mental health crises
When a Chicago resident is in mental health distress and in need of a crisis response, the last thing that a 911 caller should worry about is putting that person in any additional danger. In non-violent mental health-related situations, the best possible response is sending a dedicated mental health professional and emergency medical technician, rather than a police officer to aid the person in crisis.
That’s why Chicago launched the Crisis Assistance Response and Engagement (CARE) program in 2021, with the goal of treating these incidents with the care they require—providing resources, emergency treatment, or other response that does not escalate into violence or an arrest. The CARE team responds to mental health emergencies between the hours of 10:30 a.m. and 4 p.m. in four of the city’s police districts.
CBS News reports that between September 2021 and September 2024, the CARE team responded to more than 1,500 calls that resulted in zero arrests and use of force in less than 0.1% of incidents. Per an analysis by the University of Chicago Harris School of Public Policy, in some 40% of these incidents, “individuals presented symptoms of schizophrenia, depression, anxiety, ideations of self-harm, or misuse of alcohol or other drugs, crisis calls best served by mental and behavioral health professionals.”
The progress made by the CARE program is just another example of how AFSCME members deliver vital services to Chicago residents every day. While the program is currently funded by federal American Rescue Plan Act dollars, AFSCME is working to find fiscal solutions that keep the successful program running—and expanded across the entire city—when those dollars run out.
Federal layoffs hit dozens of workers at Chicago EPA field office
Under the direction of billionaire Elon Musk, the DOGE operation to fire tens of thousands of federal employees has caused massive chaos, confusion and distress both in Washington, D.C. and across the country.
Those layoffs hit the Chicago Field Office of the Environmental Protection Agency (EPA) this month, where dozens of workers were fired or forced to go on administrative leave.
Following the firings, AFGE Local 704, the union representing 1,000 EPA employees in the Great Lakes region, held a rally in Freedom Plaza protesting the Trump administration’s actions which were intended to loosen environmental regulations. AFSCME attended the rally in solidarity with our fellow public service workers under attack.
“This attack on the EPA workforce is unprecedented in scope and scale,” said Nicole Cantello, AFGE Local 704 president. “The result of these simultaneous actions could be a severe slowdown or shutdown of EPA’s work protecting human health and the environment in the Great Lakes region.”