Obama's billion-dollar baby: Chicago center's cost hits historic milestone, nearly triple the initial estimate

The cost of the Obama Presidential Center has nearly tripled to reach $1 billion, almost three times the initial estimate

The professor messed up the finances of the Obama Foundation in the middle of spending a billion dollars on the presidential center

Ohio State accounting professor Brian Mittendorf examines the Obama Foundation's financial health, assets and endowment as construction costs top $1 billion.

The sprawling campus on the south side of Windy City was originally slated to open in 2021 and is estimated to cost between $300 million and $350 million to build. But years of federal reviews, legal challenges and construction delays preceded its eventual opening in June 2026, when projected costs ballooned to about $850 million.

Hailed by Democrats and supporters as a historic investment in the community and a tribute to the former president's legacy, the center has been touted as a catalyst for jobs, economic growth and new opportunities for underserved communities.

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This campus is both a museum dedicated to the Obama presidency and the headquarters of the Obama Foundation. It also has a public library branch and a sports center, but unlike traditional presidential libraries, it does not house his original presidential records, although digital copies and artifacts are on display in its museum.

The climb to the $1 billion mark seems inevitable in recent years, with about $909 million in construction-related costs recorded by the end of 2025, when the project is about 80 percent complete, according to its new audited financial statements.

The Obama Foundation's newly released financial disclosures cover the nonprofit's entire operation, not just the University of Chicago campus. It also runs leadership, education, and community programs throughout the United States and around the world.

Tax filings show grants and financial aid will drop to $151 million in 2025, down from $195 million in 2024. Funding has fluctuated wildly in recent years, falling from $311 million in 2022 to $129 million in 2023, rising again in 2024 and falling last year.

Obama Presidential Center subcontractors file new payment claims totaling nearly $900,000.

Total debt in 2025 during the final stages of the center's construction reached about $103.5 million, up from $35 million in 2024 and $20 million in 2022.

The Obama Foundation's outstanding borrowing also increased from $15 million at the end of 2025 to about $63.5 million by July 2026, according to the Obama Foundation's audited financial statements. The nonprofit said it borrowed the money to cover short-term costs during the final stages of construction and that the loans were not secured against its rights to the property.

The money and investments available to cover day-to-day expenses also fell from about $265 million in 2024 to $101 million in 2025.

Brian Mittendorf, a professor of nonprofit accounting at Ohio State University who reviewed and audited the Obama Foundation's tax filings, said the nonprofit remains on solid financial footing with more than $1.1 billion in net assets at the end of 2025.

However, he noted that most of the foundation's wealth is held at the presidential center rather than assets that are easily converted into cash.

"The bottom line for me: I don't see a short-term financial problem here, but I do see an organization that has concentrated a lot of its resources in its buildings, which means more expenses and the need for more revenue to sustain this," he said.

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Mittendorff warned that raising money to maintain the sprawling campus could be more challenging than financing its construction.

"It's much easier to raise money while building a building than it is to maintain it or pay insurance or utilities," he said.

Obama Foundation officials said its operating costs are covered by revenue and private donations, though they did not provide a figure for the center's annual operating and maintenance costs.

The Obama Presidential Center is located on 19.3 acres of historic public parkland in Jackson Park. It secured the site through a 99-year contract with the city for a one-time payment of just $10.

While the foundation funded the construction, the land and buildings are legally owned by the City of Chicago.

Critics have long raised concerns about the foundation's failure to fully fund a proposed $470 million endowment — a financial safety net designed to generate revenue to maintain the center and reduce the risk of taxpayers footing the bill if the project goes wrong.

Obama Foundation officials said the agreement with the city of Chicago required them to establish an endowment before taking control of the site, rather than fully funding it. They said they prioritized fundraising for construction and leadership programs and plan to make significant investments in the fund in the coming years.

Richard Epstein, a law professor at New York University who has advised opponents of the project, disputed the Obama Foundation's interpretation, arguing that establishing an endowment without adequate funding would defeat its purpose.

Mike Owen, owner of Chicago-based Adamson Plumbing, said his company suffered nearly $4 million in damages from the project, forcing him to suspend and lay off 25 union workers. His company subsequently filed a $1.72 million mechanic's lien to pay for the disputed work.

The Obama Foundation has previously said that Lakeside Alliance, the project's construction manager, is responsible for managing and paying subcontractors and that the foundation has no pending litigation charges with the union. Lakeside Alliance has said that the contractual closure of a project of this scale can continue long after opening and is committed to resolving outstanding issues.

The campus features a museum dedicated to Obama's presidency, housed in an eight-story, 225-foot-tall tower, along with a branch of the Chicago Public Library, a children's playground, an auditorium, conference and meeting spaces, public gardens, and more than 20 commissioned art installations.

At the south end of the campus is Home Court, a 60,000-square-foot sports and community center featuring a full-size NBA basketball court, training facilities and multi-purpose rooms for meetings and events.

The Obama Foundation, headquartered at the center, also implements leadership, education and community programs in the United States and around the world, including initiatives to train emerging leaders, support youth and encourage civic engagement.

Obama's original presidential records are stored at the National Archives in College Park, Maryland, rather than at the Chicago campus, which is not part of the federal presidential library system.

Critics have long questioned why the city gave control of valuable public parks to a private museum and foundation headquarters instead of a traditional presidential library, even though the plans have been approved by the Chicago City Council and the Chicago Plan Commission. The arrangement faced years of legal challenges that ultimately failed to stop construction, though opponents argued that the courts never ruled on their original argument that the use of a public park violated the Illinois public trust doctrine.

The foundation has touted the center as more than a museum, describing it as a place to develop future leaders and inspire change around the world.

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"We are building more than a campus. We are creating a living institution that will inspire, empower and empower the next generation of leaders," the foundation declared in its 2024 annual report.

Obama echoed that sentiment at the center's inauguration in June, saying the center was designed to be more than a memorial to his presidency.

Obama said: We designed this center so that it is not a lifeless tomb.

"While we are non-partisan, we are not value neutral, we have a point of view."