Illinois Shrinks Eviction Rental Assistance Program

Illinois is scaling back its flagship rental assistance program, with funding for the next fiscal year cut by a third, just as eviction filings are rising and rent growth shows no signs of slowing.

The state’s court-based rental assistance initiative, launched with $75 million in the 2025 fiscal year, will receive only $50 million in the next fiscal year, which begins July 1, the Chicago Tribune reported. The maximum aid for eligible tenants will also be reduced from $15,000 to $10,000, although the amount set aside for court costs will increase slightly, to $700.

The program is part of Illinois’ broader “Home Illinois” budget, which also took a $26.6 million hit this year amid widespread belt-tightening. State officials cited fiscal constraints and federal austerity as key reasons behind the rollback.

Even so, housing officials insist the program remains viable.

Kristin Faust, executive director of the Illinois Housing Development Authority, told the outlet that the state expects to assist about 6,500 households next year, down from roughly 8,000 in the current cycle. The program stopped accepting applications this week.

Tenants qualify if they’re facing eviction due to nonpayment and earn less than 80 percent of area median income. For Chicago, that means an annual income of $89,700 or less for a family of four. Citizenship is not a requirement, but renters must have an active eviction case and must not have received assistance in the last 18 months.

Funds can be used for past-due rent, court costs and two months of future rent, unless a landlord refuses to participate, in which case the state may cover two months at a new unit instead.

The reduced funding comes as Cook County eviction filings continue to track near pre-pandemic levels. Through April, roughly 8,280 residential evictions had been filed. Enforced evictions have also returned to 2019 levels, especially on the city’s South and West Sides.

Meanwhile, Chicago’s rent growth ranked fourth-fastest among major U.S. cities in May, according to Apartment List. Rents jumped 2 percent month-over-month, well above the national average of 0.4 percent.

Housing advocates warn the shrinking aid pool could undermine progress on preventing homelessness.

— Judah Duke