The $300 million in upgrades came from the Rebuild Illinois Capital Program.
Two years ago, Legionnaires' disease took the lives of 12 veterans at the home, and some called for closing the facility.
Instead, Pritzker committed to renovations.
"When I talked to experts about what the right thing to do, the most cost-effective thing and that would keep our veteran's safe, the best thing to do was to upgrade the facilities here," Pritzker said. "Because we have veterans who will be coming to live in our veterans homes for many years to come."
The long-term care facility is projected to house 210 skilled-care beds.
The residential building will host 80 independent living units, with accommodations large enough for resident spouses and children.