Illinois Gov. JB Pritzker has announced that the Sales Tax and Revenue (STAR) bond program has expanded to encompass communities statewide, following the enactment of new legislation in December 2025. The STAR bond program offers financial support to advance major tourism, entertainment, retail and destination-based capital projects designed to develop and economically energize communities.
Local governments now have more opportunities to bring major projects to their jurisdictions, subsidized by state funding. To be considered for a bond, interested municipalities and counties must submit a notification of intent to establish a STAR bond district by June 1, 2026. Plan proposals and related support documentation must be submitted by Jan. 1, 2027. Finally, project plans and associated documentation are due by June 1, 2028.
Typical projects costs that may be covered by these bonds include improvements to public infrastructure, land acquisition and demolition, clearing, grading, pre-construction and design, employee training and other limited costs. The state will provide up to 50% of total development costs or $75 million – depending on which is less – for approved projects.
To qualify for the program, local governments must first establish a STAR bond district, containing a contiguous area with at least 10,000 residents within a 5-mile radius no more than 15 miles from a state highway of federal interstate. In addition, at least half of the area must be categorized as underserved. After receiving approval, local governments may then submit a project for consideration.
The number of projects available for STAR bond support varies based on the economic development region population across the state’s 10 defined districts. These limits include:
- One project: population of less than 600,000.
- Three projects: population of between 600,000 and 999,999.
- Four projects: population of 1 million or more.
Projects may not be located in municipalities with 2 million residents or more.
While the STAR bond program was initially created in 2010, it only recently authorized the first use of its available bonds in early 2025. The expansion will critically accelerate the bonding process to empower municipalities in every region to break ground on capital projects designed to attract visitors and spur new revenue streams.
Only municipalities that have been accepted into the program will be able to receive bonds for large-scale projects that generate immediate and long-term employment opportunities. The STAR bond program leverages future sales tax revenue to supplement job growth, potentially creating more than 5,000 new jobs across the state and generating at least $1 billion in sales.
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