* Gov. Pritzker vetoed an initiative by Treasurer Michael Frerichs today, citing the danger of SB246 being used to “benefit fringe and extremist groups”…

Today, I veto Senate Bill 246 of the 104th General Assembly. The bill is designed to allow the State Treasurer to create a non-profit investment pool and an electronic payment processing program to benefit 501(c)(3) and 501(c)(5) organizations. Non-profit organizations would be able to deposit funds with the Treasurer and potentially benefit from the Treasurer’s higher investment returns.

The Treasurer’s work to support Illinoisans by addressing the financial needs of Illinois non­ profits has always been commendable, and my administration highly values the critical work many non-profit organizations are doing throughout the State. This legislation is well intended to support the financial needs of Illinois non-profits, and it led community banks and credit unions to recognize there was a gap in services they have been offering. Because of the hard work of the Treasurer and advocates, these private financial institutions have created financial products to meet those needs. My administration is eager to assist in that effort.

Though SB 246 is well-intended and might benefit non-profits whose missions advance interests the state desires to promote, it would unfortunately also allow Illinois’ financial investments to be used to benefit fringe and extremist groups. I cannot sign a bill that unintentionally allows extremist groups to advance their 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. In Illinois we must remain vigilant. While the federal tax rules were designed to prevent hate groups from qualifying for non-profit status, recent changes in policies, rules, and decision-making at the federal level suggest the trend is to accept extreme views and organizations that promote violence and racial discrimination.

On January 6, 2021, the United States Capitol, the Vice President of the United States, and Members of Congress were attacked by a mob attempting to stop the Congressional certification of the electoral votes of the 2020 presidential election. Among those persons found guilty of criminal acts related to the attack were members of the group known as the Oath Keepers.

On January 20, 2025, several members of the Oath Keepers, who were convicted of offenses related to the January 6, 2021 attack received Presidential pardons of their crimes. Subsequently, I directed our state’s hiring agency to consider any participation in the January 6, 2021 attack on the Capitol to be “infamous and disgraceful conduct” for purposes of the Personnel Code and to recognize such participation as antithetical to the mission of the State to prevent the hiring of these individuals. It was and remains important to ensure that Illinois government does not allow the hate and danger that entered the Capitol that day to infiltrate our state’s government and the services we provide.

To support its activities, the Oath Keepers formed the Oath Keepers Educational Foundation, a 50l(c)(3) charitable organization. That organization’s tax-exempt status has since been revoked by the Internal Revenue Service. However, an associated group, the Indiana Oath Keepers, is currently registered as a 50l(c)(3) charitable organization and is in good standing with the Internal Revenue Service. If Senate Bill 246 were signed into law, the possibility remains that the Indiana Oath Keepers could pa1ticipate in this state’s non-profit investment pool, as the bill does not require that a participating non-profit be located in Illinois in order to participate in the program. Oath Keepers is just one of a number of extremist organizations that could become investors in the state’s non-profit investment pool, and our state should not represent or promote the interests of these type of hate groups.

Some have suggested this issue can be resolved through rulemaking, but that would necessitate the Joint Committee on Administrative Rules (JCAR) reviewing administratively proposed rules and voting on whether the standards that have been proposed appropriately limit the charitable organizations that may participate in the Treasurer’s investment pool. A government program that includes standards based on an organization’s views, activities, founders, or members to exclude non-profits with extreme positions could give rise to legal challenges.

I recognize that many non-profits with beneficial missions are facing real financial hardships, perhaps now more than ever. As noted above, my administration has encouraged community banks to offer various unique financial resources to non-profits. Community banking solutions can help give non-profits greater flexibility, such as interest-free revolving lines of credit. I look forward to continuing to foster relationships between non-profits and community banks, and my team stands ready to suppo1t non-profits.

Pursuant to Section 9(b) of A1ticle IV of the Illinois Constitution of 1970, I hereby return Senate Bill 246, entitled “AN ACT concerning State government,” with the foregoing objections, vetoed in its entirety.

Frerichs himself testified in favor of the bill.

* From Illinois Treasurer Michael Frerichs…

I am disappointed the governor vetoed this bill. 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. Sunshine remains the best disinfectant for fighting hate.

Trump is decimating funding for nonprofits throughout Illinois. Make no mistake: Local food pantries, youth and community centers, homeless shelters and other non-profit groups will be hurt. The Nonprofit Investment Pool Act would allow the Illinois State Treasurer’s Office to help those groups combine resources and earn greater investment returns to make up some of Trump’s unconscionable cuts. Every dollar we make through smart investing is another dollar non-profit organizations can invest in our local communities at a time when many non-profits and communities are struggling for resources. They also could generate interest income toward major expenses or purchases for their organizations, including repairs and upgrades to facilities, buying new equipment, or hiring workers.

More than 150 nonprofits, including the Jewish United Fund, the Illinois AFL-CIO, the NAACP/Westside Division, the Illinois CPA Society, the Illinois Environmental Council, and the Sierra Club, sent letters in support of this legislation. We will be discussing potential next steps with our legislative sponsors.

Frerichs also included copies of his letter to the governor urging passage, as well as supportive letters from the Illinois AFL-CIO and the Woodstock Institute.

…Adding… Personal PAC…

“Personal PAC supports Governor Pritzker’s veto of SB 246, a bill that could have opened the door for dangerous, anti-abortion crisis pregnancy centers to gain new funding streams and manipulate more people. These fake clinics mislead, shame, and delay people from accessing abortion care—putting patients’ health and lives at risk. Illinois cannot and will not give resources or policy advantages to organizations whose mission is to block and mislead Illinoians from accessing health care. While the aim of the bill is admirable, the unintended consequences are dangerous.  We applaud the Governor for always standing with patients and their ability to make informed decisions about their bodies.”