SPRINGFIELD, Ill. (WAND) — Local governments across Illinois are now eligible to issue sales tax and revenue bonds under a new state law. Democratic lawmakers passed the plan to lift up communities that were previously left out of massive state projects.

STAR bonds support economic growth by financing the development and revitalization of tourism, entertainment and destination-based projects.

The program was dormant for about 15 years due to challenges the state faced with implementation. However, state leaders were determined to pass legislation last fall to help every community have the opportunity to invest in capital projects and generate revenue for the local economy.

"This is yet another way that we are boosting small businesses with the partnership of state and local government, community partners and economic development organizations," Pritzker said. "Really, it's been an awful long time since we've had the kind of coordination that we have now and the opportunities that we have now for attracting businesses and creating jobs."

Pritzker told reporters Monday that current STAR bonds are expected to generate $1 billion in sales and more than 5,000 new jobs.

The number of projects available for each area is based on the population within economic development regions. North central Illinois is eligible for three different projects, while sections of the state with fewer than 600,000 people could apply for one STAR bond project.

"We're going to be able to create jobs and economic opportunity," said Rep. Jay Hoffman (D-Belleville). "It's all going to be built union because there will be a project labor agreement on any STAR bonds project."

Local government leaders must establish STAR bond districts through resolutions, and at least 50% of the area must be located within an underserved community. However, state leaders stress communities cannot use STAR bonds for professional sports stadiums like a new home for the Chicago Bears.

Pritzker said negotiations are ongoing to keep the Monsters of the Midway in Illinois.

"I think there's a real possibility that many of the things that we put on the table to work with the Bears on are things that they're willing to do to stay in the state of Illinois," Pritzker said.

Municipalities and counties must submit intent to create STAR bond districts to the Pritzker administration by June 1 to be considered. The governor's office will then start accepting STAR bond district proposals by Jan. 1, 2027. 

Copyright 2026. WAND TV. All rights reserved.