(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.
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.
