The Obama Foundation pledged to create a $470 million reserve fund to shield Illinois taxpayers from financial risks tied to the Obama Presidential Center in Chicago. However, tax filings reveal the Foundation has deposited only $1 million into that fund since its establishment—just 0.21 % of the promised amount. Law professor Richard Epstein warns that the notion of a “reserve fund” is meaningless if the money isn’t actually set aside. He argues that without a properly funded endowment, the project’s ongoing costs must rely on volatile annual revenue streams.
Illinois GOP Chair Kathy Salvi condemned the shortfall, accusing state Democrats of exposing taxpayers to undue risk. Beyond that, the Foundation has reportedly sent $2 million to the Tides Foundation—a group known for political activism. Critics see the redirection of funds as evidence that donor money is already being diverted from the protective fund.
The center’s overall cost has escalated dramatically: original estimates suggested $330 million, but recent reports place the total budget near $850 million. Even as construction proceeds, the $1 million deposit remains the only contribution to the reserve fund, with no further additions reported.
