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Illinois Plans to Borrow Another $2 Billion From Federal Reserve

  • It comes after state already borrowed $1.2 billion from Fed
  • Fed’s municipal lending program is set to end Dec. 31
J.B. Pritzker
J.B. PritzkerPhotographer: Scott Olson/Getty Images

Illinois plans to borrow an additional $2 billion from the Federal Reserve in an effort to prop up its already-struggling finances as the state’s bills rise amid the pandemic

It would be the second time the worst-rated state has borrowed through the central bank’s Municipal Liquidity Facility, an emergency lending program for state and local government issuers. Illinois already borrowed $1.2 billion from the Fed during fiscal year 2020 to cover pandemic-induced losses, and has since repaid $200 million of that loan, according to the governor’s office.