Treasurer Frerichs Makes $1.45 Billion In Investment Earnings on State Portfolio

$750 million earned for local government through Illinois Funds

The State Treasurer's Office made $1.45 billion in investment earnings from the state investment portfolio during Fiscal Year 2026, Illinois Treasurer Michael Frerichs announced today.

"Every dollar we earn in interest for the people of Illinois is a dollar that lawmakers don't have to raise in taxes or cut in services," Frerichs said. "We are trying to maximize earnings for our state at a time when working families are being squeezed by Trump's war, tariffs, inflation, and the ridiculous cost of housing."

"Working with local government to earn cities and school districts more through smart, safe investing helps them ease the property tax burden on homeowners," he said.

Under state law, the Treasurer's Office is prohibited from directly investing the state's portfolio in the stock market. Treasurer Frerichs convinced the General Assembly to allow his office to invest in secure local government bonds, such as those issued by Illinois school districts to purchase land or erect buildings, and prime money market funds that emphasize security and liquidity.

Under Frerichs, the Treasurer's Office has improved returns by increasing the average weighted maturity of our investments, which was made possible by a healthier fiscal situation in our state, and by working with the governor and General Assembly on innovative ideas.

Net earnings for all asset classes are posted to the Illinois Comptroller's Office upon completion of all reconciliations with the custodian bank. Net earnings are calculated after the monthly interest allocation has been executed. A delay in the recording of interest occurred due to a transition with the bank providing custodian services affecting both FY26 and FY27 reporting.

About the Treasurer

The Illinois State Treasurer's Office is a powerful economic engine that invests in people to drive prosperity, development and growth throughout the state. As State Treasurer, Michael Frerichs (FRAIR'iks) is the state's Chief Investment and Banking Officer and actively manages approximately $60 billion. The investments help families pay for college and trade school; workers save for a dignified retirement; and local governments process bill payments more efficiently so they can pass along the savings to taxpayers. The office provides financial institutions with money to loan to farmers, small business owners, and qualified individuals at below-market rates because better jobs create stronger communities. The office operates the state's largest consumer-protection initiative, the missing money ICash program, which has returned a record-breaking $2.6 billion since Frerichs was elected.