Illinois Comptroller Susana Mendoza announced this week that the state paid off a $2 billion loan two years ahead of schedule, potentially saving the state more than $80 million in interest payments.
Mendoza’s office made the announcement Wednesday, saying it had made the final payment of $302 million for the loan.
The state took the loan from the US Federal Reserve’s Municipal Liquidity Facility, and used the money to help cover expenses during the early stages of the COVID-19 pandemic.
“With this early repayment, we are taking another important step toward restoring financial stability and predictability in Illinois,” Mendoza said in a statement.
Governor JB Pritzker, House Speaker Chris Welch, and Senate Speaker Don Harmon reached an agreement with Mendoza’s office in May 2021 to use stronger-than-expected revenue to pay off the loan early.
According to the press release, the loan was used to cover government medical bills during the pandemic. Officials said the loan was repaid using only state revenue, and no federal stimulus money was used in the payments.
Originally, the state planned to make final payments by December 2023, but stronger-than-expected revenue from corporate income tax and sales tax receipts helped make paying off the loan possible sooner.