Illinois Passes New Law Increasing the Competitive Bidding Threshold for Schools

This month, Governor Pritzker signed Public Act 103-0008 (House Bill 3817) into law, which establishes the Budget Implementation Act for fiscal year 2024. While there are a multitude of amendments to the Act, one significant revision for public school districts is the Act’s amendment to Section 10-20.21 of the School Code, which governs the award of contracts for purchases of supplies and materials or work.  

Effective January 1, 2024, the Act increases the competitive bidding threshold for contracts from $25,000 to $35,000. Therefore, starting in 2024, school districts will be required to award all contracts for purchase of supplies and materials or work involving expenditure in excess of $35,000 to the lowest responsible bidder. Any purchases of $35,000 or less will not be subject to the competitive bidding process.  

If you have questions regarding Public Act 103-0008 or the competitive bidding process, please reach out to one of the authors of this post or any Franczek attorney.