State Investments
As Illinois’ chief investment and banking officer, Treasurer Michael Frerichs oversees the investment of funds on behalf of taxpayers, college and retirement savers, and units of local government. The Treasurer’s Office also provides treasury, cash management and investment support to state agencies, boards and commissions. Its cautious investment approach prioritizes protecting principal, maintaining enough liquidity to meet the state’s daily obligations and earning responsible returns through authorized short- and long-term investments.
College Savings Plans
College Savings Plans – The Illinois State Treasurer’s Office administers two 529 college savings plans: Bright Start and Bright Directions. These programs help families save for education through tax-advantaged investment accounts. Earnings grow free from federal and Illinois income taxes when withdrawals are used for eligible education expenses, including tuition, fees, books, room and board, qualifying trade schools and registered apprenticeships.
At the end of fiscal year 2025, the Treasurer’s Office managed more than $22 billion across nearly 940,000 college savings accounts.
The First Steps program also helps families begin saving early by providing eligible young children with a one-time $50 seed deposit. Through fiscal year 2025, more than 18,500 children had received a First Steps deposit.
The Illinois Funds
The Illinois Funds – Created by the Illinois General Assembly in 1975, The Illinois Funds is a pooled investment program that helps local governments and public agencies invest public money safely and efficiently. By combining their funds, participants can access professional investment management, maintain ready access to their money and earn competitive returns while protecting principal.
The Illinois Funds manages approximately $9 billion in assets. In fiscal year 2025, the Treasurer’s Office generated more than $998 million in investment earnings for Illinois Funds participants, in addition to $1.56 billion earned through the State Investment Portfolio.
Illinois Growth and Innovation Fund
Illinois Growth and Innovation Fund – The Illinois Growth and Innovation Fund is an evergreen impact investment fund that supports technology-enabled businesses in Illinois. In 2018, Treasurer Michael Frerichs expanded ILGIF’s available investment capital to approximately $1.5 billion over 10 years using funds from the state’s existing investment portfolio. By investing in high-potential companies, emerging fund managers and mission-aligned infrastructure projects, the Treasurer’s Office helps drive innovation, create opportunities and strengthen Illinois’ economy.
My Illinois Savings Program
My Illinois Savings – Illinois did more than recognize the nation’s retirement savings crisis—it took action. The state was the first in the nation to enact retirement security legislation designed to help private-sector workers who do not have access to a workplace retirement plan save for the future.
An estimated 1.2 million Illinois workers will gain access to retirement savings through My Illinois Savings. Enrollment continued to grow in fiscal year 2025, with more than 157,000 workers saving over $264 million for retirement.
IL ABLE
IL ABLE – The Illinois Achieving a Better Life Experience (IL ABLE) Program helps people with disabilities and their families save for qualified/eligible expenses while protecting important benefits. IL ABLE accounts offer tax advantages and professionally managed investment options. More than 8,200 account owners have saved over $105 million through the program.
FIRST Fund
FIRST Fund – The FIRST Fund is a $1.5 billion evergreen impact investment fund that supports infrastructure and real estate development across Illinois. Through ongoing investments, the fund advances critical projects that strengthen communities, enhance the state’s competitiveness, and prepare Illinois for the future.
Student Empowerment Fund (SEF)
Student Empowerment Fund (SEF) – The Student Empowerment Fund is a $1.5 billion evergreen impact investment fund dedicated to expanding access to affordable and responsible education financing for Illinois residents. The fund supports private student loan programs that help students and families cover remaining education costs after scholarships, grants, savings, and federal financial aid have been applied. By promoting lower interest rates, reasonable repayment terms and responsible lending practices, the Student Empowerment Fund helps reduce borrowing costs and makes college, career training and other eligible education programs more accessible.