In a joint statement with his sister, the Democratic candidate announced the news that Madelyn Dunham had died peacefully after a battle with cancer.
He said: “She was the cornerstone of our family and a woman of extraordinary accomplishment, strength and humility.
“She was the person who encouraged and allowed us to take chances.”
Just over a week ago, the Illinois senator took a break from campaigning and flew to Hawaii to be with Mrs Dunham, who had helped raise him.
Senator Obama, 47, learned of her death this morning while he was campaigning in Jacksonville, Florida.
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