Chicago, Illinois. Two of Illinois’ most notorious former politicians can still legally convert millions of dollars in campaign funds into personal income, despite their corruption convictions, due to a little-known grandfather clause in state election law. Former Illinois House Speaker Michael Madigan and ex-Chicago Alderman Edward Burke are among roughly 100 current or former political figures allowed to cash out campaign money accumulated before June 30, 1998.
Under the law, Burke alone could personally claim about $2.4 million from his “Friends of Edward M. Burke” campaign fund, while Madigan is eligible to convert nearly $1.4 million. The funds can be used for virtually any purpose, political or personal, so long as income taxes are paid. Burke’s accounts have continued to grow through interest and investment returns, even after his 2023 racketeering and bribery conviction and subsequent prison sentence.
An investigation found Burke’s campaign committees have generated hundreds of thousands of dollars in interest and dividends over the years, with millions invested through banks and other financial instruments. Meanwhile, Illinois election law places no restrictions on how campaign funds may be invested, even allowing unconventional arrangements, such as loans to candidates themselves.
Watchdog groups argue the loophole undermines public trust and rewards corruption, particularly given that campaign funds can also be used for legal defense costs. Since 2000, at least 40 Illinois politicians have converted campaign funds into personal income, totaling roughly $3 million statewide, highlighting the lasting impact of an outdated law that lawmakers have repeatedly failed to close.
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