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Mike Frerichs
Treasurer | Illinois

Infrastructure and Housing Impact Fund

Idea Category: 2025 Ideas Challenge, Economic Opportunity & Affordability, Remove term: Building & Development / Economic Opportunity & Affordability Building & Development

2025 Ideas Challenge Entry

Housing and infrastructure are the backbone of thriving communities, yet investment in these areas has declined nationwide. Many regions face significant affordable housing shortages and growing infrastructure demands, including increased energy needs from emerging technologies.

To address this gap, the Treasurer launched the FIRST Fund, a $1.5 billion impact investment fund dedicated to building and strengthening Illinois’ infrastructure. As the first infrastructure fund in a State Treasury, the FIRST Fund aims to invest $1.5 billion to bridge the gap between development demand and available financing. This provides much-needed development capital for revenue-producing housing and infrastructure projects that benefit Illinois citizens and generate positive economic impact and investment returns.

The fund invests up to 5% of the state’s investment portfolio, with $250 million deployed annually in projects ranging from $25 million to $75 million. All partner funds must invest at least twice the state’s commitment into local projects, ensuring direct community benefit.

Our investments in real estate will provide developers with increased capital to build new housing and infrastructure in underserved areas, particularly in minority and disadvantaged communities. The program emphasizes sustainability, diversity, and local economic growth, positioning the state as a leader in infrastructure quality, access, and resilience.

Impact or how it will be measured:

Since launching in 2023, the fund has invested $490 million in total, with 64% ($315 million) allocated to firms owned by minority, women, veteran and disabled asset managers. To date, the underlying FIRST Fund managers have invested approximately $2.1 billion into Illinois, or roughly 4.3x our $490 million invested– more than doubling our required 2x investment in Illinois.

Success will be measured by tracking a decrease in the state’s home shortage and gap between energy supply and demand. These trends will provide conviction that the FIRST Fund is making a direct impact on improving the conditions of our state for its people.