CHICAGO (WBBM Newsradio) – A plan to sell $1 billion in city-owned debt is struggling to attract financial institutions, putting a projected $90 million in revenue for Chicago’s 2026 budget in doubt.
Mayor Brandon Johnson’s administration told aldermen Thursday that banks have continued to raise concerns about the proposed sale, including legal risks, privacy issues and whether the transaction would be financially worthwhile.
Only two banks responded to the city’s request for proposals by a May deadline, according to a memo from city Comptroller Michael Belsky obtained by the Tribune. Bank of America later withdrew from consideration, while Stifel determined after meetings with city officials that the risks outweighed any potential benefit.
The debt sale was approved by aldermen as part of the 2026 budget over Johnson’s objections. The plan could include selling older debts owed to the city, such as unpaid vehicle tickets.
Johnson has long questioned whether the sale could generate the $90 million included in the budget and has warned it could lead to more aggressive collection efforts against residents.
Some aldermen have accused the administration of undermining the plan. Ald. Anthony Beale said he believes conditions imposed by the administration have made the sale less attractive to banks.
City finance officials dispute that claim. They say the administration contacted about 20 financial institutions and held more than 25 meetings this year in an effort to find a partner.
Johnson has maintained that the City Council passed an unbalanced budget and says several revenue measures approved by aldermen have fallen short of projections.
