Obama Goes Bankrupt

This is embarassing.

The Obama Foundation, created by former President Barack Obama and Michelle Obama, promised to protect Illinois taxpayers by setting up a massive $470 million reserve fund for their controversial Obama Presidential Center in Chicago.

But newly released tax filings reveal a shocking truth: the foundation has only deposited $1 million into that fund — and hasn’t added a single penny since 2021.

With construction costs spiraling out of control, experts warn that Illinois families could be stuck footing the bill for hundreds of millions of dollars in the coming years.

Sweetheart Deal With Taxpayers’ Money

Back in 2018, the Obama Foundation struck a sweetheart deal with Chicago city leaders to seize 19.3 acres of prime public parkland in Jackson Park, often called Chicago’s “Central Park.”

• Price paid by the Obamas: $10 total
• Exclusive control: 99 years
• Original construction estimate: $330 million
• Current cost: $850 million and climbing

The land, valued at $200 million, was essentially given away for free while the city labeled the agreement a “use agreement” instead of a lease — a clever legal maneuver to avoid oversight and lawsuits.

“In Illinois, Democrats either end up behind bars for corruption or treat hardworking taxpayers like their own personal ATM,” said Illinois GOP Chair Kathy Salvi, slamming the Obama deal.

Financial Red Flags Everywhere

The Obama Foundation’s latest filings reveal serious money problems:

• Cash reserves plunged from $196 million to $116.5 million in 2024.
• $234 million still owed to construction companies.
• Over $201 million in conditional pledges — which may never materialize.
• Operating costs projected at $40 million per year, requiring an $800M–$1B endowment to stay afloat.

Despite this, the foundation has already burned through over $600 million building a lavish complex featuring:

• A 225-foot-tall Obama museum tower
• A digital library and conference center
• A full-sized NBA basketball court
• Exclusive offices for the Obama Foundation

Expert: “A Public Calamity in the Making”

University of Chicago professor emeritus Richard Epstein, who has spent years warning about the project, says the Obama Foundation’s so-called “endowment” is smoke and mirrors.

“They put a million dollars into a $400 million endowment and called it funded,” Epstein said. “In the real world, you’d go to jail for that. This is a public calamity waiting to happen.”

Epstein argues that without a fully funded reserve, the Obama Center could collapse financially, forcing taxpayers to bail it out.

The Hidden Danger for Taxpayers

An endowment fund is supposed to generate interest to cover annual operating costs, ensuring taxpayers are never forced to pay for upkeep.

But with just $1 million sitting idle, there is no safety net in place. Critics say this means Chicago families, already burdened by high taxes and runaway crime, could face even higher bills if the project runs out of money.

Adding to concerns, the foundation has a $250 million revolving credit line — essentially a giant loan — which it hasn’t tapped yet but is already paying hundreds of thousands of dollars in fees to maintain.

Legal Sleight of Hand

The city’s decision to call the deal a “use agreement” instead of a lease was no accident.

In 2016, filmmaker George Lucas was blocked from building a museum on similar land after a federal judge ruled it violated the public trust doctrine, which forbids giving away public land without a clear benefit to taxpayers.

Chicago officials changed the terminology for the Obama deal to sidestep the same legal hurdles, critics say — a backroom move that allowed Obama’s foundation to take control of nearly 20 acres of prime parkland for less than the cost of a cheap lunch.

“You can’t just change the name of a deal to avoid the law,” Epstein said.
“It’s a textbook case of political corruption.”

Key Takeaways: What Taxpayers Need to Know

• $470 million promised, but only $1 million delivered to protect taxpayers.
• Construction costs have exploded from $330 million to $850 million.
• Public land worth $200 million given away for $10.
• Chicago taxpayers may face a massive bailout if the project fails.
• Foundation finances rely on future pledges, not guaranteed money.

Why This Matters for America

This isn’t just a Chicago problem — it’s a national warning sign. If powerful politicians can grab public land, dodge oversight, and spend taxpayer money with zero accountability, it sets a dangerous precedent for the entire country.

At a time when Americans are struggling with inflation, crime, and skyrocketing taxes, many see the Obama Presidential Center as a monument to political privilege, built on the backs of hardworking families.

Final Word

The Obama Foundation insists the center will open in Spring 2026, but critics aren’t buying it. Without a fully funded reserve, this project could collapse under its own weight, leaving taxpayers with a crippling financial burden for decades to come.

For many Illinois residents, this feels like politics as usual — where elites win big while taxpayers lose everything.