CPS says new state funding data adds $76 million to its FY2026 budget outlook

Chicago Public Schools says newly released Illinois school-funding data provides the district with $76 million in additional state funding for fiscal year 2026, changing the outlook for a budget that had been built amid substantial financial pressures.

Illinois released FY2026 Evidence-Based Funding allocation data on Aug. 1, according to CPS. The district said the allocation returned CPS to Tier 1 in the state formula and that it will apply $45 million above its initial funding projection to the FY2026 budget.

The funding affects CPS’s districtwide budget planning for Chicago schools. CPS has not identified particular schools or programs that would receive the additional money in the available budget information.

What Tier 1 means

Tier 1 is a funding-adequacy classification for school districts furthest from the formula’s target. It is not a measure of school performance.

CPS said its return to that tier is tied to the $76 million in new FY2026 funding. The district’s stated budget action is narrower: applying $45 million above the amount it had initially projected toward the FY2026 budget.

Budget pressures and planned measures

The allocation arrives as CPS manages costs it has identified as growing student needs, pension obligations and aging infrastructure. In an August 2025 announcement about its previously proposed FY2026 budget, CPS said that plan addressed a $734 million deficit and would protect school budgets and labor commitments.

As part of its FY2026 planning, CPS also listed $50 million in savings through central-office reductions and operational changes. The district planned to accelerate $29 million in debt-refinancing savings that had initially been targeted for FY2027.

The FY2026 budget includes a $555.9 million capital program focused on facility needs, indoor-environment systems, roofing, accessibility, restrooms, recreation and technology.

What remains unresolved

The available CPS budget page does not provide the full statewide allocation table or say whether the $76 million is immediately available as cash. It also does not say whether the Chicago Board of Education has taken final action on a budget amendment connected to the new allocation.

CPS has not established in the available information that the funding increase will continue in future years, nor has it said that the allocation eliminates the district’s broader budget gap. The next identified action is CPS’s plan to apply $45 million above its original projection to the FY2026 budget.