Study Finds Chicago’s TIF Program Favors Downtown Over Struggling Neighborhoods
A new study by the Great Cities Institute at the University of Illinois Chicago found that Chicago's Tax Increment Financing (TIF) program, designed to revitalize struggling neighborhoods, has been significantly more effective in developing Downtown areas than in poorer neighborhoods…
Chicago, IL, August 26, 2026 —
A recent study by the Great Cities Institute at the University of Illinois Chicago indicates that Chicago’s Tax Increment Financing (TIF) program has been more successful in fostering development in the city’s Downtown areas compared to its poorer neighborhoods on the South and West Sides.
The TIF program, established with the goal of revitalizing economically distressed areas, has instead, according to the study, disproportionately benefited Downtown. This finding suggests that the program may be exacerbating existing economic disparities rather than mitigating them.
Researchers analyzed TIF usage across the city dating back to 1984. The findings point to a pattern where TIF funds have concentrated on areas already experiencing economic growth, with less impact on the neighborhoods most in need of revitalization.
Furthermore, the study suggests that a significant portion of the property value increases observed within TIF districts might have occurred organically, without the intervention of the TIF program. The research also raises concerns about the diversion of tax revenue from essential city services due to the TIF program. This diversion, the study posits, could potentially result in increased property taxes for Chicago residents.
Story summarized from the original created by Nell Salzman, The New York Times on blockclubchicago.org, see more information here.
