However, Bailey did not outline how the state would replace the revenue generated by the toll system or the recent toll increase approved by lawmakers.
In the coming months, motorists using Illinois toll roads are set to pay 45 cents more per toll, while commercial vehicle tolls will increase by 30%. The increase is the largest in Illinois Tollway history.
Bailey said the higher tolls will ultimately increase costs for consumers.
"Increase those, the commercial toll, by 30 percent, what's going to happen? Our cost of living, consumer products, is going to continue to increase," Bailey said.
The Republican candidate said he wants not only to stop the increase but also eliminate tolls entirely.
"The tolls need to go, and I believe in keeping those promises," Bailey said.
The push for toll-free highways stems from commitments made when the Illinois Toll Highway Commission was created in the 1950s. The agency is now known as the Illinois Tollway Authority.
The recent toll increase was approved as part of funding for last year's $1.3 billion statewide transit bill. The measure funds tollway construction projects and supports public transit systems across Illinois, including Metra, Pace and the Chicago Transit Authority.
Bailey did not provide details on how the transit measure would be funded without the toll increase, nor did he offer a plan to replace revenue if tolls were abolished altogether.
Gov. JB Pritzker criticized Bailey's proposal, saying it lacks fiscal realism.
"He believes that magic beans can take care of everything; so it'll be interesting to see. What I can tell you is that every one of the proposals that I've seen from him is unrealistic. He doesn't understand the state budget," Pritzker said.
Pritzker said he has not yet reviewed the full details of Bailey's tollway proposal.
Bailey argued that Illinois would ultimately generate additional revenue if more residents and businesses remain in or return to the state because of lower taxes and fees.
"This relief has got to come now, to give people a break, to keep them here and draw them back," Bailey said.
Both Bailey and Pritzker are expected to attend the Illinois State Fair in Springfield this week. On Monday, Pritzker also received the endorsement of the Illinois Education Association.