Obama Erupts in Fury as Sen. Kennedy Alleges $500M ‘Slush Fund’ at Foundation Hearing

Washington, D.C. – November 10, 2025 – Chaos gripped Capitol Hill on Sunday as Sen. John Kennedy (R-LA) delivered a scorching 47-minute indictment of the Obama Foundation during a Senate Appropriations Committee hearing, branding it “the slickest money-laundering operation since Capone wore spats.” Armed with what he described as declassified IRS audits and whistleblower documents, Kennedy alleged a sprawling $500 million scandal, igniting a firestorm that reportedly left former President Barack Obama seething with rage at a nearby forum.

The hearing, ostensibly focused on federal nonprofit oversight amid the ongoing government shutdown, veered into explosive territory as Kennedy zeroed in on the Obama Foundation’s finances. “This ain’t a foundation, folks,” the Louisiana Republican drawled in his signature folksy baritone, waving a stack of redacted files. “This is a personal ATM disguised as charity.” He claimed over $500 million in donor contributions had “vanished” into undocumented “global initiatives,” leaving no paper trail for accountability.

Kennedy’s litany of accusations painted a picture of fiscal opacity. He spotlighted Valerie Jarrett, the foundation’s CEO and Obama’s longtime confidante, alleging her $740,000 annual salary persisted while the Obama Presidential Center in Chicago’s Jackson Park languished half-built for eight years—now $300 million over budget and delayed until at least 2026. He further charged that only $1 million had been deposited into a promised $470 million “taxpayer protection fund” intended to shield public park land from overruns, and that $93 million in “consulting fees” flowed to firms tied to Obama campaign bundlers.

The senator’s performance, livestreamed on C-SPAN and amplified across conservative X accounts, drew immediate backlash from Democrats. Senate Appropriations Chair Patty Murray (D-WA) interrupted, calling it “a partisan ambush unworthy of this committee.” But Kennedy pressed on, questioning why the foundation allegedly stonewalled the IRS for three years on disclosures. “If everything’s above board, why hide these books?” he quipped, eliciting chuckles from Republican colleagues like Sens. Lindsey Graham (R-SC) and Mike Braun (R-IN).

The drama peaked 20 minutes later at the Brookings Institution’s annual Democracy Forum, where Obama was headlining a panel on global civic engagement. Eyewitnesses, including aides and attendees, described a staffer thrusting a phone into Obama’s hand with live footage of Kennedy’s remarks. “He turned purple with rage,” one anonymous source told reporters, recounting how Obama slammed his fist, toppling his microphone. “They’re weaponizing audits against legacies!” he reportedly bellowed, before storming offstage mid-discussion, leaving stunned panelists in silence.

Video clips of the outburst, captured by audience members, went viral on X, amassing over 2 million views within hours. Conservative influencers like @CharlieK_news hailed it as “holy crap” vindication, posting: “Obama’s thin skin exposed—$500M slush fund busted wide open.” Progressive users, including @jenreneeX, fired back: “Fabricated nonsense—how’s this even legal?” The hashtag #ObamaSlushFund trended nationwide, blending cheers from Trump allies with cries of “fake news” from Democrats.

The Obama Foundation swiftly rebutted in a statement from CEO Robynn Steffen, Jarrett’s predecessor: “Every penny is accounted for. This is pure political theater designed to distract from real issues like the shutdown.” Jarrett herself, reached via email, deferred to the foundation’s 2023 IRS Form 990, which shows $1.1 billion raised since 2014, with 54.8% allocated to programs, 23.22% to administration—including her disclosed $754,064 compensation—and 21.95% to fundraising. The filing lists no “taxpayer protection fund” shortfall or vanishing millions, attributing construction delays to permitting battles and community input, not mismanagement.

Kennedy’s claims hinge on documents he says were declassified under President Trump’s executive order expanding IRS transparency for high-profile nonprofits. Sources close to the senator told The Post the files stem from a 2022 whistleblower tip, prompting a multi-year probe. “We’ve got the receipts,” one aide said. However, IRS spokespeople confirmed no active audit of the foundation as of November 2025, echoing past controversies where Obama-era IRS scrutiny targeted conservatives, not his own entities.

The timing amplifies the partisan sting. With the government shutdown dragging into its 40th day—fueled by battles over ACA subsidies and immigration funding—Republicans see the hearing as leverage. Trump, posting on Truth Social, amplified Kennedy: “John Kennedy just exposed the Obama grift machine! $500M gone—where’s the wall for that?” Democrats, including Sen. Dick Durbin (D-IL), decried it as “vintage McCarthyism,” linking it to Trump’s alleged weaponization of audits against foes.

Legal ramifications loom. Anonymous sources say Kennedy’s office has forwarded a criminal referral to the DOJ for potential wire fraud and tax evasion probes. “This could unravel the whole operation,” a GOP strategist predicted. The foundation, meanwhile, vows transparency, promising a full financial audit release by year’s end.

Obama’s post-White House life has long been a conservative target—from his Netflix deal to foundation largesse. Founded in 2014 to “inspire civic engagement,” it boasts initiatives like the Obama Scholars Program and global leadership summits, but critics decry its opulence: a $700 million glassy tower amid Chicago’s South Side inequities. Jarrett, a fixture since Obama’s Chicago days, embodies the continuity—her salary, while high, pales against peers like the Clinton Foundation’s $1.2 million executive pay in 2022.

As X erupts—@MAGANationX calling it “bombshell,” @WelbornBeege labeling it “horseshit”—the scandal tests media fault lines. Mainstream outlets like CNN and The New York Times have covered the hearing sparingly, focusing on Obama’s “outburst” as uncharacteristic, while Fox News looped Kennedy’s zingers. Fact-checkers, including Snopes, flagged the viral post as “unverified,” noting no Senate transcript matches the exact quotes.

For Obama, 64 and reflective in his Hyde Park library, the episode evokes old battles: IRS scandals that dogged his administration, now flipped against him. “Weaponizing audits”—his alleged words—echoes his 2013 vow to hold the IRS accountable for Tea Party targeting. Allies say it’s deflection from Trump’s shutdown tactics; foes, proof of elite impunity.

The Obama Center, a beacon of hope for community uplift, now symbolizes excess. Will DOJ probes follow? Or fizzle like past foundation gripes? As Kennedy quipped post-hearing: “Truth has a way of bubbling up, like gumbo on a slow boil.” Stay tuned—this pot’s just heating up.