Obama Center Faces Scrutiny Over $470 Million Endowment as Subcontractors Claim Millions Unpaid
Updated
Updated · Fox News · Jun 13
Obama Center Faces Scrutiny Over $470 Million Endowment as Subcontractors Claim Millions Unpaid
1 articles · Updated · Fox News · Jun 13
Summary
$470 million in promised endowment funding is under renewed scrutiny as the Obama Presidential Center nears its grand opening and subcontractors say they are still owed large sums.
Adamson Plumbing alone says it is nearly $4 million in the red after delays, rework and more than 100 change-order requests, while other firms reportedly claim losses from hundreds of thousands to tens of millions.
The Obama Foundation says the center is fully funded by private contributions and complies with its city agreement, arguing the deal required an endowment but set no specific dollar target and that significant investments will come later.
Critics say the reserve was meant to shield Chicago taxpayers if fundraising or operations falter; public filings previously showed only about $1 million in the fund despite a 2020 fundraising goal that earmarked $470 million for it.
Those concerns have intensified because project costs rose from roughly $330 million to at least $850 million, while the foundation has estimated annual operating costs near $40 million.