Governor Signs Extension of School District Interfund Transfer Authority Through 2029

Governor Pritzker has signed Public Act 104-0602, extending Illinois school districts’ authority to make certain interfund transfers through June 30, 2029. The Act was signed on July 24, 2026, and took effect immediately.

Section 17-2A of the School Code permits school districts outside Chicago to transfer money among certain operating funds, including the Educational Fund, Operations and Maintenance Fund, and Transportation Fund. The statute also allows transfers from the Tort Immunity Fund to the Operations and Maintenance Fund.

Ordinarily, Section 17-2A requires transfers between principal operating funds to be used only for one-time, non-recurring expenses. However, a temporary provision first enacted in 2003 suspends that restriction and allows districts greater flexibility in using transferred funds. That provision has been repeatedly extended by the General Assembly over the years. The expanded transfer authority expired on June 30, 2026, but Public Act 104-0602 now extends the authority for an additional three years, through June 30, 2029.

Districts utilizing Section 17-2A transfer authority must continue to follow the statute’s procedural requirements, including adoption of a board resolution following a public hearing. Notice of the hearing and the proposed transfer must be published and posted at least 7 days, but not more than 30 days, before the hearing.

Please contact your Robbins Schwartz attorney with any questions regarding interfund transfers.