The Obamas want their time in the limelight. But this isn’t the kind of attention they need.
Now Barack Obama has been caught in a huge scandal that could land him in court.
Obama Foundation Faces Scrutiny Over Unfunded Endowment for Chicago Presidential Center
The Obama Foundation’s ambitious plan to construct the Obama Presidential Center in Chicago’s historic Jackson Park is under fire as new tax filings reveal a glaring shortfall in its promised $470 million endowment, raising concerns that taxpayers could be left footing a massive bill if the project falters.
Broken Promises on Endowment Funding
When the Obama Foundation secured a 99-year deal for just $10 to build its sprawling 19.3-acre complex in Jackson Park—often likened to Chicago’s Central Park—it vowed to establish a $470 million reserve fund to shield taxpayers from financial risks. Yet, recent filings show only $1 million has been deposited into the endowment, a mere 0.21% of the pledged amount, with no additional contributions since 2021.
“This is a textbook example of overpromising and underdelivering,” said Illinois GOP Chair Kathy Salvi. “Illinois Democrats have a long history of treating taxpayers like an ATM for their pet projects, and this sweetheart deal for the Obama Center is no exception.”
University of Chicago law professor emeritus Richard Epstein, a vocal critic of the project, called the endowment shortfall a “public calamity.”
He noted that the foundation’s failure to secure the promised funds undermines the city’s agreement, which was meant to ensure financial stability for the center’s operations. “An endowment means money in the bank, not empty promises,” Epstein said. “With only $1 million in place, they’re nowhere close to meeting their obligations.”
Soaring Costs and Financial Uncertainty
The Obama Presidential Center, initially budgeted at $330 million, has seen costs skyrocket to at least $850 million, with construction progressing slowly.
The foundation’s latest tax filings paint a troubling picture: cash reserves dropped to $116.5 million in 2024, down $80 million from the previous year, while $234 million in construction costs remain unpaid. Of that, $216 million relies on donor pledges, with an additional $201 million tied to conditional commitments that may never materialize.
Epstein warns that without a robust endowment, the center’s estimated $30-$40 million annual operating costs could force the foundation to scramble for funds, potentially leaving taxpayers to cover shortfalls. “If the project collapses, the public could be stuck with environmental cleanup, traffic rerouting, or even an unfinished eyesore,” he said.
The foundation insists the center is “fully funded” and set to open in spring 2026, claiming it will prioritize endowment contributions in the future. However, critics argue this is too little, too late, especially as the foundation juggles a $250 million revolving credit line, incurring hefty fees without drawing funds.
Public Trust at Stake
The deal to hand over prime public parkland for a nominal fee has long been contentious. Epstein, who advised the nonprofit Protect Our Parks in its failed legal challenges to halt the project, argues the city’s “use agreement” with the foundation—a rebranded 99-year lease—dodged public trust doctrine protections. This legal maneuver, he says, mirrors the city’s failed attempt to grant filmmaker George Lucas similar parkland access in 2016, which a federal judge blocked.
“They’ve sidestepped accountability at every turn,” Epstein said, noting the city’s declaration that the foundation is “compliant” despite the endowment’s near-empty state. “This project has never been fully vetted, and the public deserves to know if their money is at risk.”
The Obama Foundation maintains the center will honor the former president’s legacy while serving as a civic hub, featuring a 225-foot museum, digital library, and NBA-sized court. Yet, with financial transparency lacking and donor fatigue looming, critics like Epstein fear the project’s shaky foundation could burden Chicagoans for decades.
