IL Treasurer to work with lawmakers after Pritzker's veto of nonprofit
bill
[August 26, 2025]
By Jim Talamonti | The Center Square
(The Center Square) – Illinois Treasurer Michael Frerichs is promising
to discuss next steps with lawmakers after Gov. J.B. Pritzker vetoed
legislation which would have allowed Frerich’s office to set up an
investment pool for nonprofit organizations.
In a rare move, Pritzker sided with Statehouse Republicans who voted
against Senate Bill 246.
In his veto message, the governor said the measure would allow fringe
and extremist groups to benefit from Illinois' financial investments.
State Sen. Adriane Johnson, D-Buffalo Grove, sponsored SB 246.
State Rep. Rita Mayfield, D-Waukegan, sponsored the House version of the
legislation, which would authorize the state treasurer to establish an
investment pool and electronic payment program for nonprofit
organizations.
“This legislation will benefit nonprofits by allowing them to invest
into a safe, liquid investment vehicle that provides them with better
returns and lower fees than what they are currently receiving through
financial institutions,” Mayfield explained on the House floor May 28.
The measure passed, 73-39, after state Rep. Jeff Keicher, R-Sycamore,
urged his colleagues to defeat the measure.
“My concerns arise that the treasurer’s office is now going to be able
to host accounts that will be a platform to further political
influence,” Keicher said.
Keicher referred to a number of groups that might benefit from the
investment pool, ranging from think tanks and labor unions to campus
organizations that could support organizations like Hamas and Free
Palestine.
“It’s a slippery slope. There are private enterprises, private community
foundations that are able to do this. We have to be very cautious about
this not being something that’s within the treasurer’s purview,” Keicher
continued.
In a letter dated July 1, Illinois AFL-CIO officials urged the governor
to sign SB 246.
“This legislation will benefit the Illinois AFL-CIO and our affiliated
labor unions by providing us the opportunity to invest in a safe, liquid
investment vehicle that provides better returns and lower fees than what
might currently be available through financial institutions,” the letter
stated.
On July 15, Frerichs sent a letter to the governor requesting his
signature on the bill.
“Local food pantries, youth and community centers, homeless shelters and
other non-profits would be able to generate interest towards major
expenses or purchases for their organizations, whether that would be for
repairs or upgrades to facilities, the purchase of new equipment, or the
hiring of additional workers,” Frerichs wrote.
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Illinois Treasurer Michael Frerichs - BlueRoomStream
In his veto message, Pritzker said he could not sign a bill that
unintentionally allows extremist groups to advance what he called
“hateful missions” by exploiting state services and resources.
“This is not an exercise in hypotheticals — hate groups are growing.
Some of their members have been elevated by the Trump White House to
positions of power and are no longer on the fringes of American
society. They are currently attempting to reshape the legal and
ethical boundaries of our country from within the federal
government,” the governor stated.
Pritzker mentioned the Indiana Oath Keepers as an organization that
could benefit from the bill. The group did not immediately respond
to requests for comment.
According to the group’s website, the Indiana Oath Keepers are “a
nonprofit volunteer organization of military, law enforcement,
firefighters and first responders, veterans, as well as everyday
patriotic citizens who pledge to sacred oath to uphold the
constitution of the UNITED STATES OF AMERICA, in order to protect
the rights and freedoms of all Americans.”
In a statement provided to The Center Square Aug. 21, Frerichs said
he was disappointed the governor vetoed SB 246.
“Like the governor, I decry the rise of extremist and hate groups
and the efforts of the Trump administration to mainstream hate. I
strongly disagree with the governor’s misguided belief that hate
groups would use a state investment pool. The bill specifically
requires that to be eligible, a nonprofit must provide a copy of
their audited financial statements. No hate group would ever agree
to that,” Frerichs stated.
The treasurer said more than 150 nonprofits sent letters in support
of the legislation.
“We will be discussing potential next steps with our legislative
sponsors,” Frerichs concluded.
The Legislature returns for fall veto session in October where
legislators could attempt and override of the governor's veto.
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