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Obama Presidential Center deposits just $1M into $470M reserve fund aimed to protect taxpayers
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When the Obama Foundation snagged a sweetheart deal to build its beleaguered Obama Presidential Center on a Chicago public park, it pledged to create a $470 million reserve fund to spare taxpayers should the project ever go belly up.
But new tax filings show the foundation has only deposited $1 million into the fund and has not added to it in years, with critics saying the empty promise could potentially leave Chicagoans on the hook for hundreds of millions of dollars.
Under its agreement with the city, the foundation was required to create the fund, known as an endowment, in order to take control of the sprawling 19.3-acre section of Jackson Park — often described as Chicago’s Central Park equivalent — where the complex is now slowly rising.
The foundation ultimately secured the public land for just $10 in 2018, under a 99-year deal.
Former President Barack Obama is pictured next to construction of the Obama Presidential Center in Chicago, Illinois, a project facing delays, soaring costs and mounting scrutiny over its finances. (Scott Olson/Getty Images; REUTERS/Vincent Alban)
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But when former President Barack Obama and former First Lady Michelle Obama turned the sod at the site in September 2021, just $1 million — or 0.21% of the pledged funds — had been deposited into the endowment, and that figure has remained unchanged ever since.
With construction progressing at a snail’s pace and costs ballooning from an original estimate of $330 million to at least $850 million, the lack of progress on the promised endowment has fueled fears the Obama Presidential Center could leave taxpayers holding the can if finances spiral into the red.
It comes as the Obama Foundation’s latest tax return shows its finances under strain with revenue swinging wildly year to year, fundraising shortfalls and unfulfilled donor pledges.
On news that the endowment has largely remained unfunded, Illinois GOP Chair Kathy Salvi slammed the project as an «abomination» while blasting Democrats for potentially exposing taxpayers with the deal.
«It should come as no surprise that the Obama Center is potentially leaving Illinois taxpayers high and dry — it’s an Illinois Democrat tradition,» Salvi told Fox News Digital in a statement. «Democrats in this state, when not going to prison for corruption, treat taxpayers like a personal piggy bank giving sweetheart deals to their political benefactors.»
The Obama Presidential Center under construction in July. (Fox News Digital)
Scholar sounds alarm
Richard Epstein, a University of Chicago law professor emeritus and a New York University law professor, has raised concerns about the endowment for years and advised the local nonprofit Protect Our Parks with legal challenges to try to stop the Obama Center’s construction.
Epstein argues the foundation’s failure to fund its endowment confirms his long-held view that the city never should have signed over the large section of Jackson Park.
«They put a million dollars into a $400 million endowment, so it’s endowed. That gets you in jail as a securities matter,» Epstein told Fox News Digital. «An endowment means that you have the money in hand… But they have nothing. They just have the same $1 million that they put in in 2021 as far as I can tell. So I regard this as something of a public calamity.»
An endowment is a pot of money meant to earn enough interest each year to cover operating costs without touching the principle in order to avoid the taxpayer stepping in.
«Without an endowment, they’ll have to scramble every year to cover $30 million in operating costs,» Epstein said. «The whole point of an endowment is to avoid that volatility. They just haven’t endowed it. Of that I’m 100% sure.»
Epstein argues that if the foundation or center falters, the public could be saddled with traffic rerouting costs, environmental impacts, or even the bill for an incomplete building.
«Nobody knows exactly who is responsible for what if the project is abandoned or incomplete,» Epstein said. «There is a risk that the public will then have to bear that loss because the foundation won’t have the money.»
Epstein said the city has effectively looked the other way, declaring the foundation «compliant» on the endowment despite only $1 million ever being deposited. Proof, he argues, that officials never intended to enforce the requirement.
The Obama Foundation told Fox News Digital that it will be making «significant investments in the endowment in the coming years» as it has been prioritizing fundraising for the center and leadership programs.
«The Obama Presidential Center is fully funded and it will open in the spring of 2026,» a spokesperson for the foundation said.
CharityWatch, a nonprofit watchdog, told Fox News Digital that the foundation technically complied with its agreement by creating an endowment because the deal never set a dollar figure. The group also said that the foundation remains «well-funded» overall while also acknowledging the pledge risks, volatility and lack of a real endowment.
An aerial view shows construction of the Obama Presidential Center in Jackson Park, Chicago, Illinois, where costs have soared and questions remain about the project’s funding. (Scott Olson/Getty Images)
While the foundation’s agreement with the city required it to create an endowment, it did not specify an amount. The $470 million figure was being reported on as the city council deliberated on the deal and the foundation committed to that sum in its 2020 annual report.
In 2021 documents, the foundation said that first-year operating costs would be as much as $40 million. By that math, the center would actually need an endowment of between $800 million to $1 billion to fund operations without tapping the principle.
It’s also unclear how much revenue the foundation expects to generate each year.
Epstein said the lack of funds has long been the project’s Achilles heel. Without the endowment it promised, the project’s financial underpinning remains shaky, he said.
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Despite financial pressures, the Obama Foundation has already spent about $600 million constructing the center, which aims to honor former President Barack Obama’s political career and be a civic hub. It consists of a 225-foot-tall museum, a digital library, conference facilities, a gymnasium and a regulation-sized NBA court. It will also house the Obama Foundation.
The new tax filings show the foundation ended 2024 with $116.5 million in cash, down nearly $80 million from the year before, while still owing about $234 million in construction costs. Of the funding gap, $216 million comes from firm pledges — promises of future donations — while another $201 million is tied up in conditional pledges that may never materialize if benchmarks aren’t met.
Epstein said the foundation’s financial assurances ring hollow, because a large chunk of the money it counts on is tied up in pledges and credit rather than cash in hand — leaving the center vulnerable to donor fatigue and year-to-year uncertainty.
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Public trust doctrine
In the Protect Our Parks lawsuit, Epstein argued that handing Jackson Park to the Obama Foundation violated the public trust doctrine — which bars cities from giving away public land without a clear public benefit. The plaintiffs said the city gave away land worth nearly $200 million without securing enforceable returns for taxpayers.
However, U.S. District Judge John Robert Blakey, an Obama appointee, dismissed the case in 2019, ruling that the Obama Center qualified as a public use and that courts should defer to the city’s determination. The Seventh Circuit upheld the dismissal in 2020 and various other challenges by the plaintiffs have also failed on the public trust doctrine argument.
Epstein now points to the foundation’s failure to fund its promised endowment as proof the project never truly met the public benefit test and that a core part of his argument was valid.
As well as not being able to fill the endowment, the foundation is also financing a $250 million revolving credit line that it has yet to draw down but is costing the foundation hundreds of thousands of dollars in annual fees, according to the tax filings.
Illinois Governor J.B. Pritzker (L) joins former U.S. President Barack Obama and former first lady Michelle Obama in a ceremonial groundbreaking at the Obama Presidential Center in Jackson Park on Sept. 28, 2021 in Chicago, Illinois. At the time, around $1 million was in the endowment and it has remained relatively the same since. ( Scott Olson/Getty Images)
Easing oversight
Epstein argues the endowment shortfall is just one example of how the project has skirted safeguards.
Its 99-year deal with the city was rebranded as a «use agreement,» instead of a land lease, a legal pivot that he said let the city sidestep public-trust oversight and other regulatory checks.
The move grew out of an earlier fight over filmmaker George Lucas’s bid to build a Museum of Narrative Art on the lakefront. In 2016, a federal judge ruled the city’s plan to hand Lucas a 99-year lease of public parkland violated the public trust doctrine, sending Lucas packing for Los Angeles.
When the Obama Foundation arrived the following year, city officials adopted the new user agreement label. The terms were effectively the same — exclusive control for nearly a century in exchange for $10 — but by calling it a «use agreement,» the city claimed it no longer triggered the same scrutiny.
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Epstein called it a textbook case of bending the rules. «You can’t get out of a government regulatory relationship by changing the name on something,» he said.
Epstein said the foundation’s finances have never been fully scrutinized and his team was never allowed to examine the center’s internal records — from construction contracts to day-to-day statements — leaving the true state of its fundraising and shrouded in secrecy.
«They’ve gotten a free pass on both the environmental side and the financial side,» Epstein said. «Unless somebody cracks open the books, nobody really knows if they can actually fund this project. And if they can’t, it’s the public that will be left holding the bag.»
The offices of Mayor Brandon Johnson, Gov. J.B. Pritzker, the Democratic National Committee and the Democratic Party of Illinois did not respond to requests for comment.
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Las estaciones de servicio europeas siguen suministrando combustibles y los aeropuertos siguen llenando los depósitos de los aviones, pero el cierre del Estrecho de Ormuz y el choque energético que provoca podría cambiar pronto esa situación de relativa normalidad. La Comisión Europea ya adelanta que si nada cambia en los mercados energéticos habría que empezar a tomar medidas en semanas o meses y ya está indicando a los gobiernos del bloque qué decisiones serían las primeras para consumir menos combustible, sobre todo queroseno de aviación y diésel para en transporte de mercancías por carretera.
El comisario de Energía del brazo ejecutivo de la Unión Europea, el danés Dan Jorgensen, contó al diario Financial Times que la Comisión Europea está evaluando “todas las opciones” porque “los precios de la energía serán más altos durante mucho tiempo” aunque se reabra Ormuz y vuelva a salir el petróleo y el gas del Golfo Pérsico. Fuentes comunitarias llevan días explicando que Europa no está todavía en una crisis de suministro, pero que podría estarlo si el conflicto, que ya cumplió seis semanas, se alarga. Esas mismas fuentes aseguran que no ven muchas probabilidades en un cierre limpio y rápido del choque entre Irán, por un lado, y Estados Unidos e Israel por el otro, y que eso tendrá consecuencias en los mercados energéticos europeos.
Jorgensen asegura que no hay que racionar por ahora, pero sí hay que prepararse para hacerlo en los próximos meses si sigue el conflicto.
Las primeras medidas que apunta la Comisión Europea no son muy disruptivas, pero los ciudadanos podrían empezar a notarlas pronto. Sobre todo en el sector del transporte.
Bruselas pide a los gobiernos, por ejemplo, que reduzcan la velocidad máxima en autopistas para reducir el consumo de combustible (se calcula que un auto que circula a 100 kilómetros por ahora consume un 15% menos que uno en las mismas condiciones a 120 kilómetros por hora).
En la carta de Jorgensen a los gobiernos se les señala también que deben fomentar el uso del transporte público y del teletrabajo para reducir los movimientos de personas y empezar a reducir el número de vuelos, aunque eso empieza a hacerlo el mercado por su cuenta por el aumento del precio del queroseno de aviación, que se ha doblado en estas semanas de guerra.
La carta no apunta más medidas, pero la Comisión Europea sí estudia, cuentan las mismas fuentes comunitarias, una lista de sugerencias que hizo hace dos semanas la Agencia Internacional de la Energía. Entre ellas una que no se activa en Europa desde los años 70 del siglo pasado. Se trataría de reducir a la mitad el uso del auto alternando su uso en función de su matrícula. Los días pares podrían salir a las calles y carreteras los autos con matrículas pares y los días impares los autos con matrículas impares.
El discurso y las sugerencias de Jorgensen y de la Comisión Europea variaron en apenas días. Si ahora empiezan a pedir esas medidas, el 20 de marzo pasado, con la guerra ya por su tercera semana, decían que no había ningún riesgo para el suministro en Europa, que no veían necesidad de tomar medidas excepcionales y que el continente estaba “relativamente protegido” porque sus importaciones de hidrocarburos desde el Golfo Pérsico en particular y desde Oriente Medio en general eran limitadas.
La única medida que se planteaba hace un mes es una que se toma cada año desde que empezó la guerra en Ucrania, el llenado de las reservas europeas de gas en primavera y verano para tenerlas llenas antes de las próximas estaciones de otoño e invierno. Ahora mismo esas reservas no llegan al 30% de su capacidad.
La subida radical del precio del queroseno de aviación preocupa en la Comisión Europea porque una reducción sustancial de vuelos en Europa en los próximos meses podría afectar de lleno a la campaña de primavera y verano del turismo, un sector económico esencial en el bloque y vital para las economías europeas del Mediterráneo.
El combustible, cuenta la Comisión Europea, supone entre un 25% y un 30% del coste total de operación de las aerolíneas, por lo que duplicar su precio les hace un agujero económico. Según la IATA (siglas en inglés de la Asociación Internacional del Transporte Aéreo) el barril de queroseno de aviación pasó de 99,4 dólares el 27 de febrero a 195,19 dólares un mes después, el 27 de marzo.
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Zelensky exigió a Rusia detener los ataques sobre infraestructuras energéticas para avanzar hacia un alto el fuego
El presidente de Ucrania, Volodimir Zelensky, propuso este lunes a Rusia la posibilidad de una tregua únicamente si se detienen por completo los ataques dirigidos a la infraestructura energética ucraniana.
“Si Rusia está dispuesta a frenar los golpes sobre nuestra red eléctrica, nosotros también responderemos en la misma medida”, afirmó el mandatario en su mensaje diario.
Según Zelensky, la propuesta fue transmitida a Moscú a través de mediadores estadounidenses y constituye el único escenario en el que Kiev contempla un cese de hostilidades.
La iniciativa de alto el fuego surge tras una nueva ola de ataques rusos que devastaron varias regiones y dejaron víctimas civiles en Odesa, donde un bombardeo nocturno mató a tres personas, incluido un niño pequeño.
“Hemos ofrecido reiteradamente a Rusia una pausa, al menos durante la Pascua, un periodo especial para ambos pueblos. Pero para ellos, todos los días son iguales. Nada es sagrado”, lamentó el presidente de Ucrania.
El Kremlin respondió fríamente a la propuesta anterior, indicando que sólo consideraría una negociación para un acuerdo de paz total.
Zelensky también subrayó que las conversaciones con Estados Unidos continúan centradas en lograr garantías de seguridad duraderas para Ucrania.
“Trabajamos junto a los negociadores estadounidenses en mecanismos que aseguren la estabilidad futura. Ese es el factor clave para una paz real”, explicó, al tiempo que destacó la importancia de la cooperación internacional en el contexto actual.
Durante la última semana, Rusia intensificó sus ataques con drones y misiles sobre infraestructuras vitales en las provincias de Kharkiv, Chernigov, Sumi y Dnipró. El presidente detalló que, solo en la noche previa, fueron lanzados más de 140 drones, de los cuales cerca de 80 eran del tipo Shahed, de fabricación iraní.
Zelensky denunció que “en algunas zonas, los bombardeos continúan. Esto representa apenas una muestra del sufrimiento diario de nuestra población”. Añadió que, en los últimos siete días, el país sufrió el impacto de más de 2.800 drones de ataque, 1.350 bombas aéreas guiadas y más de 40 misiles.
El ataque más reciente en Odesa resultó particularmente grave para la población civil. Según Zelensky, “los drones rusos impactaron edificios residenciales, una guardería infantil y una subestación eléctrica. Miles de familias han quedado sin luz, y los equipos de reparación llevan horas trabajando sin descanso para restablecer el suministro”.
La cifra oficial de heridos ascendió a 16, entre ellos dos menores y una mujer embarazada.
El presidente ucraniano insistió en la necesidad de reforzar las defensas aéreas del país. “En este momento, todos los socios internacionales deben redoblar esfuerzos y aportar más sistemas para interceptar drones y misiles. Mejorar la protección de nuestros cielos no solo protege a Ucrania, sino que también es una inversión en la seguridad de Europa”, subrayó.
En paralelo, las autoridades rusas informaron sobre un ataque con drones lanzado desde Ucrania contra la ciudad portuaria de Novorossiysk, en la región de Krasnodar, que dejó ocho heridos, entre ellos dos niños. Las imágenes publicadas muestran daños visibles en la parte superior de un edificio residencial, con ventanas y balcones destruidos por la explosión.
A pesar del aumento de los ataques rusos y de la negativa de Moscú a aceptar la tregua propuesta, Zelensky reiteró que Ucrania mantiene abierta la vía diplomática, siempre que se respeten condiciones mínimas que garanticen la protección de la infraestructura civil.
“Nuestra disposición a negociar depende de la voluntad de Rusia para detener la destrucción de instalaciones energéticas y evitar más víctimas inocentes”, concluyó el presidente.
(Con información de Reuters y EFE)
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Obama Center takes heat as critics cry foul over ID rules for free entry — while Dems blast voter ID laws
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The Obama Presidential Center is facing a wave of backlash ahead of its opening, with critics blasting its admission policies and raising broader concerns about the project’s cost and management.
Conservative commentators on social media are taking aim at the center’s requirement that Illinois residents show valid identification to receive free admission on certain days, arguing it contrasts with Democratic opposition to voter ID laws.
«They’re making you show ID… to visit the Obama Library… in Chicago. You can’t make this stuff up!» one social media user wrote.
«The Obama Presidential Library is making people show an ID for proof of Illinois residency to get in for free,» another posted. «So residents have to prove who they are for this, but not to vote?»
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The text of former President Obama’s speech marking the 50th anniversary of «Bloody Sunday» in Selma, Alabama, is wrapped around the side of the upcoming presidential center in Chicago. (E. Jason Wambsgans/Chicago Tribune/Tribune News Service)
Others echoed the sentiment more bluntly, with one account writing: «It turns out Democrats support requiring ID… but only for free admission into Obama’s library.»
Obama’s website clearly states that Illinois residents «must be able to provide proof of residency. Be prepared to show proof of residency at the Museum with a valid photo ID, Illinois driver’s license, state ID, or city-issued ID.»
Critics have also pointed to reported restrictions tied to early ticket giveaways, including claims that some promotions are limited to U.S. citizens or lawful permanent residents.
The latest controversy builds on a string of prior criticisms surrounding the $850 million project.
OBAMA PRESIDENTIAL CENTER SLAMMED FOR PROMOTING ‘FAR-LEFT’ AGENDA ON PUBLIC LAND
Illinois Governor J.B. Pritzker (L) joins former President Barack Obama and former first lady Michelle Obama in a ceremonial groundbreaking at the Obama Presidential Center in Jackson Park on September 28, 2021, in Chicago. (Scott Olson/Getty Images)
Earlier this year, the Obama Foundation drew backlash after seeking 75 to 100 unpaid volunteers, dubbed «ambassadors,» to help operate the center, even as top executives collect substantial salaries. Federal filings show CEO Valerie Jarrett has earned roughly $740,000 annually in recent years, while overall compensation at the foundation has climbed significantly.
The project has also faced mounting scrutiny over its financial impact on taxpayers.
Former President Barack Obama once described the center as a «gift» to Chicago, emphasizing it would be privately funded. While construction of the 19.3-acre campus is being financed through private donations, the surrounding infrastructure needed to support the site, including road redesigns, utility relocations and drainage systems, is being paid for with public funds.
Early estimates put those infrastructure costs at roughly $350 million, split between the city and state. But more recent figures show Illinois alone has committed approximately $229 million, while Chicago has allocated more than $200 million in related improvements — though officials have not provided a clear, consolidated total of taxpayer spending tied to the project.
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Exterior view of the Obama Presidential Center tower under construction in Chicago. (Fox 32 Chicago)
«No single agency appears to oversee the full scope» of the infrastructure work, and critics say the lack of transparency has made it difficult to determine the true public cost.
Illinois Republican Party Chair Kathy Salvi criticized the project, saying taxpayers are being left «on the hook for hundreds of millions of dollars» while accusing state leaders of mismanagement.
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The controversy is further fueled by the nature of the site itself. The center sits on nearly 20 acres of historic Jackson Park land transferred under a long-term agreement, with significant roadway changes, including the removal of a major thoroughfare, and utility overhauls required to accommodate the campus.
Foundation officials have defended the project, saying the center is funded by $850 million in private investment and will serve as an economic catalyst for Chicago’s South Side, generating jobs, community programs and public amenities.
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Despite the backlash, the center is pressing ahead with its long-awaited debut.
Tickets for the museum will go on sale April 21 for «Founding Members,» with general public sales beginning May 6. Visitors can reserve timed-entry tickets for dates between June 19 and November 30.
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Admission is set at $30 for adults and $23 for children ages 3 to 11, with discounted rates available for Illinois residents who provide proof of residency. Children 2 and under can enter for free, and Illinois residents will be eligible for free admission on Tuesdays.
All entries will be timed, with officials urging guests to arrive within 10 minutes of their scheduled slot. The museum will feature four levels of exhibits, including a replica Oval Office and the Sky Room.
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Much of the surrounding campus, including gardens, walking trails, a playground, a Chicago Public Library branch and dozens of newly commissioned artworks, will be free and open to the public.
Fox News Digital reached out to the Obama Foundation and the Barack Obama Presidential Library for comment.
Fox News Digital’s Michael Dorgan contributed to this report.
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