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He takes care of his Mom that is in the late stages of dementia , she is 24/7 total care. And would like to get some reimbursement from the state to help with the bills. He cannot work because caring for his Mom is a full time job.

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The poster is asking about the caregiver getting paid to care for his mother. It is my understanding that in some states if they state gives you money to pay for a caregiver, it doesn't extend to a family member or a person who has power of attorney.
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Sounds like this person needs to get in contact with a social worker from the area agency on aging to get financial assistance rolling. Power of Attorney basically lets you sign papers and make decisions on behalf of the incapacitated person. Sometimes it's only medical decisions, not even financial ones.

I ran into trouble because my name is listed as a joint account holder on mom's checking account. That was a bad move. Her debts are my debts. Her credit problem is now my credit problem. I can see how this setup would limit what kind of financial aid would be available, but not by granting someone POA.

Work with a social worker to navigate the processes involved.
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It's not just Illinois, it's that way in a number of states. I think it's just a fear of conflict of interest. Not enough checks and balances, I think.
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Medicare does not pay for home care, Medicaid will, but you have to have low income and few assets. At the least, he should have a personal care contract where mom is paying him. If he qualifies for HEAP or SNAP, certainly he should apply for that. If he can enroll her in a Day Rehab, he can go to work.
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