A new law aimed at raising pension benefits for some Chicago police and firefighters risks further straining the city's finances, according to S&P Global Ratings. Bloomberg's Shruti Singh reports.

Chicago

Chicago's financial outlook has worsened following the enactment of a new state pension law, which adds $11.6 billion to the city's existing $36.5 billion in long-term pension liabilities. This comes as the city is already facing a projected billion-dollar deficit and uncertainty regarding future federal funding.

To address the increased financial strain, Mayor Brandon Johnson is considering various options to raise revenue, including the possible reintroduction of a corporate head tax, which was previously eliminated in 2014. While negotiations on the 2026 budget are ongoing, the potential tax has raised concerns among local businesses, though no companies have publicly stated intentions to leave the city at this stage.

Chicago faces $11.6B pension hit from new state law

Trudy it's an amazing story. Give us the details on why these pension decisions are really giving Chicago a much worse of a time now at raising money. So Chicago already is facing what early estimates indicate is a billion dollar deficit in 2026 and its long term financial outlook also is weighed down by the net unfunded pension liability that it carries. Now this new pension law that was just signed by Governor Pritzker last week potentially adds another 11 billion dollars to a roughly thirty six point five billion dollar long term liability that the city carries for its pensions. Yeah it's a little terrifying right because you always have the specter of Orange County on the back of your mind. How close is Chicago to defaulting or parts of Chicago. Oh no one is saying that that's the case. But right now what's happening is that the city has a deficit that it's trying to close for 2026. So what this does is potentially adds to those costs. And the question is how is the city going to raise additional revenue to pay for these long term costs. The city has been ramping up its pension fund contributions over the last several years. But this just adds strain at a time when the city is facing winding down federal pandemic aid and questions about what federal funding is going to look like going ahead. Now Mayor Brandon Johnson has as you say been looking for ways to make up some of this shortfall. And he's talking about a corporate head tax. What would that be. Shruti it doesn't sound too friendly to corporations. Yeah this is something that companies and businesses in Chicago have not supported in the past. This was something that the city had implemented until about 2014 when previous mayor Rahm Emanuel had eliminated it. And there's questions about how the city is going to raise revenue. And this is one of the options that the mayor just recently said could be on the table. Have any companies said that they would leave Chicago if it were to be implemented. You know it's not clear exactly what companies are saying about this. I think it's fairly early because negotiations are still going on in terms of what the budget for 2026 is going to look like. But in the past this was not a popular factor in the business decisions.

U.S. President Donald Trump said that there is a good chance he'll meet with Russian leader Vladimir Putin soon over Russia's war with Ukraine.

Washington

Ukraine Invasion

Trump says 'good chance' he'll meet with Putin soon

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Global Tariffs

Higher U.S. tariffs officially take effect

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New York

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Jerusalem

Middle East Conflict

U.S. Ambassador to Israel faces questions over starvation in Gaza

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U.S. begins collecting Trump's new global tariffs

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State of Rio de Janeiro

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Fort Stewart

Five soldiers shot at Fort Stewart in Georgia; suspect apprehended

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Moscow

Witkoff, Putin had 'useful and constructive conversation'

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Hiroshima

Hiroshima marks 80th anniversary since U.S. atomic bombing

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Beijing

U.S. warns travelers as cases of chikungunya increase in China

Japan has commemorated the 80th anniversary of the Hiroshima atomic bombing during World War II. Ceremonies at Peace Memorial Park honoured the victims of the 1945 nuclear attack by US forces.

Japan’s Hiroshima marks 80 years since U.S. atomic bombing

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Netanyahu reportedly wants complete Gaza takeover

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Kyiv

Zelenskyy holds 'productive talks' with Trump about war

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The House Oversight Committee has subpoenaed multiple people over the Jeffrey Epstein files, including former President Bill Clinton and former Secretary of State Hillary Clinton. CBS News' Jake Rosen has more details.

House committee subpoenas Clintons, others over Epstein files

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A man suspected of murdering four family members in Tennessee has been captured after a four-day manhunt, authorities said. CBS News' Nicole Valdes has more.

Jackson

Suspect arrested in murders of 4 Tennessee family members

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Brazil's Supreme Court orders house arrest of Bolsonaro

The US and Lebanon have been holding talks on a roadmap to fully disarm Hezbollah. Lebanon's new leadership has pledged to extend its authority across all its territory but has so far avoided acting against Hezbollah.

Beirut

Lebanon faces renewed pressure to disarm Hezbollah

CBC News had exclusive access to a Canadian Armed Forces plane that dropped about 10,000 kilograms of humanitarian aid into Gaza, the first time Canada joined the airdrop operations. Several countries airdropped food on Monday, but aid organizations agree they are more symbolic than effective.

Ottawa

Canadian military makes aid drop into Gaza

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Geneva

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Donald Trump confirmed his special envoy Steve Witkoff will visit Russia, ahead of a deadline the U.S. president has set for Russia to agree to end the Ukraine war or face new sanctions. Witkoff is expected in Moscow in the middle of this week.

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Tel Aviv-Yafo

Videos of hostages increase pressure on Netanyahu for ceasefire

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Breakdown