Chicago Mayor Brandon Johnson held a town hall Feb. 26 at Friendship Baptist Church, where West Side residents learned about what they can expect from the hard fought and recently approved 2026 city budget. They also hear Johnson, an Austin resident, explain why the long fight with the city’s alders was worth it.
Attendees had the opportunity to ask questions and share their thoughts directly with the mayor and staff. Johnson said his plan relied on asking large corporations to pay more, while critics on the City Council pushed with some success for alternative revenue options.
“I’m proud to have worked with him on this 2026 budget. I think this budget reflected his values, the values he held very highly and those are values that put people first,” West Side Alderman Chris Taliaferro said.
Johnson said the city is moving forward with residents involved at every step, noting that the budget includes 98% of the proposals outlined in his Protecting Chicago plan. He discussed the introduction of a first-of-its-kind “smart tax” that would require ultra-wealthy corporations such as Facebook, Google and TikTok to pay what he described as their fair share.
Jung Yoon, the mayor’s chief of policy, outlined the proposed budget, highlighting revenue, savings and investments. The plan includes progressive measures such as a community safety surcharge to fund violence prevention, taxes on big tech and yachts, the nation’s first social media “smart tax,” fees on vacant bank-owned buildings, expanded congestion surcharges for ride-share users, an online sports wagering tax and a historic Tax Increment Financing (TIF) surplus.
“TIF is a wonky term for tax increment financing and it had been set aside for economic development. Historically, however, this process was very inequitable, so by redirecting those funds to schools, parks, and libraries, we are returning the money to the people,” Yoon said.
Johnson said Chicago was the first city in the U.S. to implement a structure like this, and now the state of Illinois is adopting the same model.
“Through the smart tax, we have secured sustained investments in our mental health crisis response team and our community-based clinics. These are lifelines for families who deserve care, not criminalization,” Johnson said.
Yoon said the community safety surcharge, often called the corporate head tax, would have taxed only the largest companies with 500 or more full-time employees $33 a month, funding a dedicated community safety program while exempting 99.5% of businesses and nonprofits. She noted that wealthy donors strongly opposed the proposal, leading city council to replace it with measures like higher garbage fees, selling debt to collectors, legalizing video gaming terminals, cutting the TIF surplus, reducing youth jobs, raising the liquor tax and increasing the grocery bag tax.
“Obviously, we had a lot of concerns about these proposals and the ways they would impact everyday residents, particularly those who cannot afford to pay. With community organizing and the mayor’s leadership, we were able to fight back on several items, avoiding a doubling of the garbage fee, protecting $100 million for school funding, and preserving youth jobs. Unfortunately, some of the proposals still remain in the budget, and we continue to have grave concerns about them,” Yoon said.
Annette Guzman, Chicago’s budget director, said part of her role is to review the final budget, highlight concerns, assess who it impacts, and ensure that projected revenues are realized while keeping expenditures within the planned limits.
“When City Council proposed an alternative to the mayor’s budget, one of the things we considered was that if the corporate head tax, or community safety surcharge, which is levied entirely on corporations and does not affect residents, was removed, what would replace it? The list of measures that Johnson mentioned included some of the proposals they put forward,” Guzman said.
The budget closes funding gaps in domestic violence prevention initiatives, aiming to ensure survivors are not left to navigate trauma alone. It also preserves essential city services such as sanitation, public health, youth programs and infrastructure that support residents’ daily lives. Despite several hard-fought victories, the plan includes provisions that were difficult to accept and may ultimately cause harm.
“There are leaders and forces in this city who would rather go against the interests of everyday people than ensure we have an equitable tax structure that holds the largest corporations and wealthiest individuals in our city and state accountable. As a result, this budget goes after our most vulnerable residents by turning to private debt collectors without full oversight. It also attempts to balance itself on projections from sources the public has never seen or heard of,” Johnson said.
Johnson said while calls to tax the wealthy have existed nationwide for years, few leaders have put forward concrete proposals. The 2026 budget, though not including every desired measure, initiated an important conversation about equity in Chicago. He emphasized continuing that discussion with alderpersons, keeping residents at the center and criticizing federal tax breaks under Donald Trump for disproportionately benefiting the rich.
“Let’s stop balancing the budget on the backs of Chicagoans who can least afford it. I need your partnership and support if we are going to tell the truth and chart a new path for Chicago, especially as we move into next year’s budget,” Johnson said.