Gov. Pritzker Highlights Expansion of STAR Bond Program
Growth of STAR bond program promotes development and revitalization in Illinois communities
February 9, 2026
BELLEVILLE – Today, Governor JB Pritzker joined the Illinois Department of Commerce and Economic Opportunity (DCEO), the Illinois Department of Revenue (IDOR), and local leaders to highlight the expansion of the Sales Tax and Revenue (STAR) bond program to communities statewide. The program is designed to support economic growth with financing options to develop and revitalize communities through major tourism, entertainment, retail, and destination-based projects in STAR bond districts.
“The STAR bond program provides local governments with a sensible, fiscally responsible path to bringing major projects to their towns and transformational opportunity to their people,” said Governor JB Pritzker. “By expanding it, we’re opening up more paths to sustainable growth across Illinois. Our state has so much to offer, each community with unique characteristics and character. STAR bonds give them every opportunity for investment in long-term development and prosperity.”
Governor Pritzker expanded STAR bond eligibility to municipalities statewide through SB1911, which was signed in December 2025. This legislation empowers municipalities in every region of the state, providing them with additional financing options to meaningfully invest in capital projects that will attract visitors and spur additional revenues in local economies. Municipalities who are accepted into the program and approved for projects are permitted to issue STAR bonds to finance large-scale projects.
STAR bonds are an economic development tool for driving job creation in Illinois communities by encouraging large-scale development projects that generate both immediate and long-term employment opportunities. By using future sales tax revenues within a STAR bond district to unlock private investment, these projects will support construction jobs; permanent positions in tourism, entertainment, and retail; and related employment. If all eligible STAR bond projects are completed, they could eventually generate at least $1 billion in sales and create more than 5,000 new jobs across Illinois.
“The State of Illinois aims to support communities in every corner of the state by promoting revitalization, development, and job creation, and expanding the STAR bonds program is a meaningful step forward for communities pursuing investment,” said DCEO Director Kristin Richards. “DCEO stands ready to share information about the expanded STAR bonds program with communities interested in accessing this powerful tool.”
“The expanded STAR bonds program gives Illinois a new way to turn local growth into local opportunity,” said IDOR Director David Harris. “By reinvesting future sales tax growth, communities can support development that benefits residents today and for years to come.”
“Expanding the STAR bonds program gives Illinois' communities a powerful tool for economic development,” said State Rep. Jay Hoffman. “The STAR bonds program will attract private investment through a competitive process and develop new attractions, which helps create jobs and generate growth at the local level.”
“The statewide expansion of the STAR bonds program opens the door for communities to build destinations that strengthen local economies,” said State Rep. Katie Stuart. “This program creates opportunities for growth by supporting projects that bring more jobs, visitors, and development to Illinois.”
“STAR bonds provide local governments a reliable tool to fund development that strengthens our local economy and delivers real benefits to our communities,” said Jennifer Gain Meyer, Mayor of Belleville.
“People are crossing the river to shop, dine, stay overnight, and be entertained—not because Illinois lacks demand, but because we have lacked the right tools to deliver the kind of destination-scale projects that compete regionally and nationally,” said Kyle Anderson, Executive Director for the Leadership Council of Southwestern Illinois. “With the passage and signing of the STAR bond legislation, Illinois now has that tool.”
In order to be eligible for the program, units of local government must first establish a STAR bond district via resolution. These districts must be in a contiguous area with at least 10,000 residents within a five-mile radius that is located no more than 15 miles from either a state highway or federal interstate. At least 50% of this area must be located within an underserved area at the time the district plan is submitted. A STAR bond district may not be located, either entirely or partially, inside a municipality with more than 2 million residents.
After a STAR bond district is approved locally, units of local government may submit a STAR bond project to the state for consideration. Selected projects will be ones bolstering significant economic activity and job creation, while promoting major tourism, entertainment, and retail endeavors. This excludes projects related to professional sports stadiums.
As outlined in statute, the number of projects available for each area is based on economic development region population:
- One project: population of less than 600,000
- Three projects: population of between 600,000 and 999,999 (North Central and Southwest)
- Four projects: population of 1 million or more (Northeast)
Interested municipalities and counties must email CEO.STARbonds@illinois.gov to notify DCEO of an intent to establish a STAR bond district by June 1, 2026. To learn more, please visit the DCEO website.
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