Obama's deputy press secretary, Josh Earnest, said the White House would not comment on the indictment, which does not allege any wrongdoing by Obama or his top aides.
Prosecutors also accused Blagojevich and members of his inner circle of plotting to line their pockets with millions of dollars in ill-gotten gains. They are accused of squeezing contractors, hospital owners and others seeking state business for kickbacks they planned to split after the governor left office.
"I'm saddened and hurt but I am not surprised by the indictment," Blagojevich, who was in Walt Disney World with his family, said in a statement. "I am innocent. I now will fight in the courts to clear my name."
Obama's chief of staff, Rahm Emanuel, was the congressman, attorneys familiar with the case said Thursday. The attorneys spoke on condition of anonymity because the congressman isn't named in the indictment and the information is secret grand jury material.
The indictment says the congressman asked about a $2 million grant included in the state budget for a school. But Blagojevich allegedly told a state official to tell the lawmaker his brother would have to raise campaign funds or the grant wouldn't go through.
At the time, Emanuel represented the 5th District on Chicago's North Side. Some of the funds were later released, even though no fundraiser had been held.
The indictment does not say which of Emanuel's two brothers was involved. Emanuel's brother Ari is a Hollywood agent and the inspiration for Ari Gold, the Type-A superagent on the HBO series "Entourage." His brother Ezekiel is an oncologist.
The indictment also alleges that Blagojevich:
-Was involved in a corrupt scheme to get a massive kickback in exchange for the refinancing of billions of dollars in state pension funds.
-Told an aide he didn't want executives with two financial institutions getting further state business after he concluded they were not helping his wife get a high-paying job.
-Withheld state aid sought by the Tribune Co. unless the company fired unfriendly editorial writers at the Chicago Tribune.
Also, convicted fixer Tony Rezko paid Patti Blagojevich a $14,396 real estate commission "even though she had done no work" to earn it and later hired her at a salary of $12,000 a month plus another $40,000 fee, the indictment said.
Others charged were brother Robert Blagojevich; former chief of staff Alonzo Monk; one-time chief fundraiser Christopher G. Kelly; Springfield lobbyist-millionaire William F. Cellini; and another former chief of staff, John Harris. Prosecutors said Harris has agreed to cooperate.
Robert Blagojevich is chairman of the Friends of Rod Blagojevich campaign fund.
"We were hoping that it wouldn't happen but now we go to trial and win," said his attorney, Michael Ettinger.
Cellini attorney Dan Webb said his client never had a substantive conversation with Blagojevich, much less conspired with him. Messages were left for attorneys for Monk, Kelly and Harris.
Blagojevich faces 16 counts of wire fraud, racketeering and extortion conspiracy, attempted extortion and making false statements. Most of those charges carry a maximum sentence of 20 years in prison and a $250,000 fine.
