Illinois Expands STAR Bond Program Statewide

New legislation empowers municipalities across the state to access financing for major tourism, entertainment, and retail projects.

Published on Feb. 9, 2026

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Governor JB Pritzker announced the expansion of the Sales Tax and Revenue (STAR) bond program to communities statewide. The program provides local governments with financing options to develop and revitalize communities through large-scale tourism, entertainment, retail, and destination-based projects. The expansion, enabled through SB1911, gives municipalities in every region of Illinois additional tools to drive job creation and economic growth.

Why it matters

The STAR bond program is designed to spur investment and development in communities across Illinois, not just in major metropolitan areas. By making the program available statewide, the state aims to support economic growth and revitalization in both urban and rural areas, creating new jobs and generating additional tax revenues for local economies.

The details

The STAR bond program allows municipalities to issue bonds to finance large-scale projects that are expected to generate significant tourism, entertainment, and retail activity. 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 the state. To be eligible, communities must establish a STAR bond district with at least 10,000 residents within a 5-mile radius, and at least 50% of the district must be located in an underserved area.

  • The STAR bond program expansion was enabled through SB1911, which was signed into law in December 2025.
  • Interested municipalities and counties must notify the Illinois Department of Commerce and Economic Opportunity (DCEO) of their intent to establish a STAR bond district by June 1, 2026.

The players

Governor JB Pritzker

The Governor of Illinois who announced the expansion of the STAR bond program statewide.

Illinois Department of Commerce and Economic Opportunity (DCEO)

The state agency that oversees the STAR bond program and will work with interested municipalities.

Illinois Department of Revenue (IDOR)

The state agency that will support the STAR bond program by reinvesting future sales tax growth to benefit local communities.

State Rep. Jay Hoffman

A state representative who praised the expanded STAR bond program as a powerful tool for economic development.

State Rep. Katie Stuart

A state representative who said the STAR bond program expansion creates opportunities for growth by supporting projects that bring more jobs, visitors, and development to Illinois.

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What they’re saying

“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.”

— Governor JB Pritzker (riverbender.com)

“The expanded STAR bonds program gives Illinois a new way to turn local growth into local opportunity.”

— IDOR Director David Harris (riverbender.com)

“Expanding the STAR bonds program gives Illinois' communities a powerful tool for economic development.”

— State Rep. Jay Hoffman (riverbender.com)

“The statewide expansion of the STAR bonds program opens the door for communities to build destinations that strengthen local economies.”

— State Rep. Katie Stuart (riverbender.com)

What’s next

Interested municipalities and counties must email CEO.STARbonds@illinois.gov to notify the DCEO of their intent to establish a STAR bond district by June 1, 2026.

The takeaway

The expansion of the STAR bond program statewide provides communities across Illinois with new financing tools to drive economic development, create jobs, and attract visitors through large-scale tourism, entertainment, and retail projects. This program empowers local governments to invest in their communities and compete for investment on a regional and national scale.