The Kansas City Chiefs are planning to move across state lines to Kansas, building a new stadium that will receive a record $1.8 billion in combined public money.

The team’s new domed venue in Wyandotte County is projected to cost $3 billion, according to a statement from Kansas governor Laura Kelly, which includes the stadium and a mixed-use development about 20 miles west of the team’s current home. The team will separately build a practice facility in nearby Johnson County, which also includes a mixed-use development.

The state of Kansas will pay 60% of those costs, Kelly said. That will happen via the Attracting Professional Sports to Kansas Fund, and via sales tax and revenue bonds, also known as STAR bonds. The Hunt family, which owns the Chiefs, will pay for the rest.

Kelly said in a press conference from Topeka that this was biggest announcement she’s made in her seven years as governor. “Kansas is not a flyover state,” she said, to applause. “We are a touchdown state.”

It is by far the highest public subsidy ever for a major U.S. sports venue, and at a time when more and more people seem to be openly questioning whether these projects are a good use of public money. That said, despite pushback from economists, think tanks, politicians and—as happened with a prior Chiefs stadium proposal—voters, money keeps flowing to multibillion-dollar franchises.

The new Tennessee Titans stadium included $1.26 billion from the state and county. The new Buffalo Bills stadium project received $850 million from the state and county, plus another $400 million in future maintenance and repair. Estimates for the new Washington Commanders venue are in the $1.15 billion range. Even the new Denver Broncos project, discussed casually as privately funded, will include public subsidies and tax breaks.

STAR bonds, according to the Kansas Department of Commerce website, “are used to assist the development of major entertainment or tourism destinations in Kansas. State and local sales tax revenue generated by the attraction and associated retail development are used to pay back the bonds.” The Attracting Professional Sports to Kansas Fund was established by the state to take revenue from iLottery and sports betting to recruit pro franchises.

Monday’s news may put to rest a multiyear process in which Chiefs leadership pursued public money for a new venue, at times taking advantage of the fact that Kansas City is spread across two different states. That allowed the team to leverage talks with both Kansas and Missouri as it sought answers about its future. The team currently plays in Arrowhead Stadium, the oldest venue in the AFC, with a lease in the building that expires in January 2031. The team will then move for the 2031 season.

Last year voters in Jackson County, Mo., rejected a plan to extend the current $0.00375 sales tax to help fund a new stadium for MLB’s Kansas City Royals and an $800 million Arrowhead renovation. The Chiefs’ discussions with Kansas legislators, separate from the plans of the Royals, accelerated after that vote.

It also comes amid a rare down year for the NFL team on the field. After appearing in five of the last six Super Bowls, the Chiefs will miss the playoffs this season for the first time since 2014, and also the first time in the career of star quarterback Patrick Mahomes. Mahomes tore his ACL and LCL earlier this month, and could miss time next season. Star tight end Travis Kelce may soon retire, and head coach Andy Reid will be 68 years old next season. No head coach older than 68 has ever won a Super Bowl.

The new Chiefs stadium will be built at a yet-to-be-chosen location in Wyandotte County, with officials looking around the intersection of Interstate 70 and Interstate 435. That’s the location of the Kansas Speedway, the home stadium for MLS club Sporting KC, and a casino. The speedway is about 20 miles west of Arrowhead Stadium.

The Chiefs are worth $6.53 billion, according to Sportico’s NFL valuations. That ranks No. 16 in the NFL, with 2024 revenue at $670 million.

In addition to the stadium and practice facility, the Hunt Family is also committing to $1 billion in additional development, according to the announcement, which did not provide specifics. A portion of that development can also be incentivized by STAR bonds, the state said.