Governor JB Pritzker visited Belleville to discuss the expansion of the Sales Tax and Revenue (STAR) bond program, which now extends to communities across Illinois. The STAR bond program is intended to support economic growth by offering financing options for major tourism, entertainment, retail, and destination-based projects within designated 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.”
The expansion comes after the signing of SB1911 in December 2025. This legislation allows municipalities throughout Illinois access to additional financing options for capital projects aimed at attracting visitors and increasing local revenues. Municipalities accepted into the program can issue STAR bonds for large-scale developments.
STAR bonds are designed as an economic development tool that uses future sales tax revenues from within a district to attract private investment. These projects are expected to create both immediate construction jobs and permanent positions in sectors such as tourism, entertainment, and retail. If all eligible projects move forward, projections suggest they could generate at least $1 billion in sales and create over 5,000 new jobs statewide.
DCEO Director Kristin Richards stated: “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. DCEO stands ready to share information about the expanded STAR bonds program with communities interested in accessing this powerful tool.”
IDOR Director David Harris added: “The expanded STAR bonds program gives Illinois a new way to turn local growth into local opportunity. By reinvesting future sales tax growth, communities can support development that benefits residents today and for years to come.”
State Rep. Jay Hoffman commented: “Expanding the STAR bonds program gives Illinois’ communities a powerful tool for economic development. 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.”
State Rep. Katie Stuart noted: “The statewide expansion of the STAR bonds program opens the door for communities to build destinations that strengthen local economies. This program creates opportunities for growth by supporting projects that bring more jobs, visitors, and development to Illinois.”
Jennifer Gain Meyer, Mayor of Belleville said: “STAR bonds provide local governments a reliable tool to fund development that strengthens our local economy and delivers real benefits to our communities.”
Kyle Anderson from the Leadership Council of Southwestern Illinois remarked: “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. With the passage and signing of the STAR bond legislation, Illinois now has that tool.”
To qualify for participation in this initiative, units of local government must establish a contiguous STAR bond district with at least 10,000 residents within five miles; it must also be located no more than 15 miles from a state highway or federal interstate. At least half of this area must be classified as underserved when submitting plans; districts cannot be located inside municipalities with populations exceeding two million.
After approval at the local level, governments may submit proposed projects—excluding professional sports stadiums—to state officials for consideration based on potential economic impact.
Project availability varies by region population size:
– One project allowed where population is under 600,000
– Three projects permitted where population ranges between 600,000–999,999 (North Central/Southwest)
– Four projects allowed where population exceeds one million (Northeast)
Municipalities interested in establishing a district must notify DCEO by June 1st via email.
The Illinois Department of Revenue oversees state tax collection efforts while providing financial information services; it also emphasizes fair administration of tax laws (source). The department values diversity among its staff members as well as equitable treatment for customers (source).
For further details about eligibility or application procedures regarding STAR bond districts or other programs managed by DCEO or IDOR visit their respective websites.
