Chicago Just Burned Through Millions of Dollars

Chicago has already maxed out its entire 2025 police misconduct lawsuit budget just four months into the year, with $82 million already spent—and the city still faces hundreds of pending legal claims. The financial strain is adding pressure to an already fragile city budget facing a projected $982 million deficit.

One major factor was a staggering $32 million settlement approved last week for a St. Louis man who lost both legs in a 2022 police chase. The city council greenlit the payout, further depleting resources meant to last through December.

Mayor Brandon Johnson acknowledged the ongoing legal liabilities, many stemming from decades-old incidents. “We have inherited quite the mess,” Johnson told reporters, noting the volume of lawsuits still on the books.

Corporation Counsel Mary Richardson-Lowry admitted that projecting settlement costs is unpredictable. “Some predictions one can make, but [they are] largely unknown because it depends on the parties with whom we’re negotiating for settlement,” she said.

Richardson-Lowry added that the administration may need to make midyear budget adjustments in response to legal expenses. Quarterly meetings involving the law, budget, and police departments are already underway to reassess allocations.

Meanwhile, residents are raising red flags about the broader fiscal picture. During a recent City Council budget hearing, resident Tiwon Sims pointed out the city’s near $1 billion projected shortfall and criticized ongoing spending, especially on noncitizen migrants.

“I want to watch y’all push the pieces with a…$982 million shortfall already looming,” Sims said. He also highlighted the absence of a Department of Government Efficiency, suggesting a structural flaw in how the city manages its funds.

With police-related lawsuits piling up and no clear cap on future payouts, Chicago faces a growing financial and political challenge that threatens to derail its already fragile 2025 budget.

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