Obama Presidential Center’s cost hits $1 billion, roughly triple original estimate

The Obama Foundation says the Obama Presidential Center in Chicago will cost about $1 billion to build, roughly triple the original estimate, as the nonprofit faces contractor payment disputes and questions over how it will pay for the campus’s upkeep.

The foundation said in a statement first reported by Fox News Digital that it expects total construction costs of approximately $1 billion, “all raised in private contributions.” Emily Bittner, its vice president of communications, said the figure includes added public art, insurance, scope changes to the Home Court athletic facility, project management and exhibit installation.

Early estimates put construction at $300 million to $350 million, with an opening targeted for 2021. The campus, on 19.3 acres in Jackson Park, opened June 19 after years of federal reviews, lawsuits and delays. The foundation announced a construction cost of $909 million in late September, the Sun-Times reported. The figure excluded $123 million in publicly funded infrastructure improvements around the site. The foundation now projects approximately $1 billion in total campus construction costs.

At $1 billion, the project would be the most expensive presidential center in U.S. history, according to the Washington Examiner, which compared it with the George W. Bush Presidential Library’s $327 million cost. The Texas comptroller estimates that figure in inflation-adjusted 2023 dollars.

Fox News Digital’s review of the foundation’s audited financial statements found liabilities rose to about $103.5 million in 2025 from $35 million a year earlier. Outstanding borrowing climbed from $15 million at the end of 2025 to roughly $63.5 million by July. The foundation said the loans covered short-term costs in the final stretch of construction and are not secured against its rights to the property.

Money and investments available for everyday expenses fell to about $101 million in 2025 from $265 million in 2024. Donations and grants dropped to about $151 million from $195 million.

Brian Mittendorf, a nonprofit accounting professor at Ohio State University who reviewed the filings for Fox, said the foundation is not in short-term financial distress and holds more than $1.1 billion in net assets. But he said much of that wealth is tied up in buildings, which points to more costs ahead and a need for new revenue. He also warned that raising money for upkeep, insurance and utilities is typically harder than raising it for construction.

The foundation did not give a figure for the center’s annual operating and maintenance costs, saying only that they will be covered by revenue and private donations. Foundation CEO Valerie Jarrett told the Sun-Times that the board has decided to create a capital budget for ongoing maintenance and expects to approve it by year’s end.

Critics have also questioned the foundation’s progress toward a proposed $470 million endowment intended to help cover the center’s long-term costs and protect taxpayers from financial exposure. Fox previously reported that only $1 million had been deposited in the fund. The foundation’s overall endowment grew to about $14.2 million by the end of 2025, though it is unclear how much of that is earmarked for the center.

The foundation says its agreement with the city required it to establish an endowment, not fully fund it, before taking control of the site, and that it plans significant investments in the fund in coming years. Richard Epstein, a New York University law professor who has advised opponents of the project, disputes that reading, arguing that an unfunded endowment offers no protection. The foundation holds the site under a 99-year agreement with Chicago for a one-time $10 payment, and the city legally owns the land and buildings.

Some subcontractors say they are still waiting to be paid. Mike Owen, owner of Chicago-based Adamson Plumbing, says the project cost his company nearly $4 million, forcing him to suspend operations and lay off 25 union workers. He has filed a $1.72 million mechanic’s lien and told Fox this week that he has not recovered the money.

The foundation has said construction manager Lakeside Alliance was responsible for managing and paying subcontractors and that it has no outstanding disputed charges with the alliance. Lakeside has said closeout on a project this size can continue long after opening and that it remains committed to resolving outstanding matters.