Trump is cashing in on his presidency amid a new political scandal — NYT
U.S. President Donald Trump has found himself at the center of a new scandal following reports that he established a political fund to make payments to his allies.
According to The New York Times, critics accuse Trump of using the presidency for political and financial gain. The publication also claims that the U.S. Department of Justice is allegedly involved in creating a mechanism to support the president’s allies.
This week’s announcement of a $1.8 billion government fund—ostensibly for victims of the Department of Justice’s enforcement actions, but almost certainly intended for his allies—confirms this.
Trump has devoted a significant portion of his second term to enriching his family through foreign and private funds via cryptocurrency deals, high-frequency stock trading, and a Boeing 747 gifted by Qatar. But until recently, there was no evidence that his most brazen schemes involved actively obtaining funds directly from American taxpayers. That all changed when he, his two sons, and the Trump family business sued the U.S. government for $10 billion over the leak of their tax returns. In effect, Trump, as a private citizen, sued President Trump, the head of the executive branch. He didn’t even pretend it made sense, joking to reporters that he had to negotiate with himself.
This ten-figure deal regarding the “Weapons Proliferation Fund” marks a new low in Trump’s meddling in government finances. Trump supporters convicted of crimes on January 6 may receive large shares, but the Trump clan will reap the greatest benefits. Under the agreement, the U.S. government is barred from conducting further tax audits of the Trumps or their businesses, sparing the family from penalties that could have reached $100 million or more and placing them beyond the reach of the law. According to Acting Attorney General Todd Blanche, this order is intended to be permanent. When the details of the deal were announced, the Treasury Department’s top lawyer, a former clerk for Supreme Court Justice Clarence Thomas, resigned in protest. Former Justice Department special counsel Brendan Barlow called it the most corrupt act in American history and Trump’s most shameful act since January 6, 2021.
Despite his immense influence over the past decade, Trump has had relatively few achievements that could leave a historical legacy. Times Opinion columnist Ezra Klein noted that Trump, especially during his second term, preferred to strike small deals involving concessions from the other side rather than pursuing large-scale policies. He targeted individual schools instead of reforming the education system and struck deals with a few pharmaceutical companies instead of rethinking the relationship with Big Pharma. He has not yet dismantled NATO, and his administration is far from carrying out mass deportations, so the only truly historic changes remain his Supreme Court appointments. However, the open monetization of the presidency is his true innovation.
Trump has already pardoned a number of convicted criminals after receiving donations. Electric vehicle company CEO Trevor Milton donated nearly a million dollars to a pro-Trump group before his pardon, and convicted tax fraudster Paul Walczak cited his mother’s fundraising efforts for Trump. A whole cottage industry has sprung up around this, with cronies selling access to the president in exchange for pardons, as happened with entertainment industry executive Tim Leveque after Trump played golf with Fox News host Trey Gowdy. A new secret $1.8 billion fund with no clear definition of “armament” has the potential to multiply these ethical disasters in the pardon market and make cronyism an official function of the federal government.
Die-hard MAGA supporters such as Mike Lindell and Michael Caputo have already expressed interest in money from this fund. The main risk lies in using these funds to finance paramilitary organizations loyal to the president, which is a fundamentally new and dangerous step. This could include five members of the Proud Boys who are suing the government for $100 million over alleged political persecution following their convictions for storming the Capitol, as well as leaders of the Oath Keepers. In addition, Andrew Paul Johnson, who was convicted of participating in the riots and pardoned by Trump—and later found guilty of molesting two children—has already promised his victims a share of the millions he expects to receive from the federal government for his participation in the events of January 6.
This week, Democratic senators demanded assurances from Todd Blanche that such criminals or extremist groups would not receive payments from the fund. Blanche refused, stating that decisions would be made by a five-person commission appointed by him, and that Trump would have the right to dismiss anyone at his discretion. If political violence carried out in the name of the president is actively rewarded, it will lead the country into very dark times. The legal dubiousness of the scheme could prevent this. Former Deputy Assistant Attorney General Harry Litman notes that federal lawsuits require an actual conflict between two parties, which does not exist in Trump’s dispute with himself.
Furthermore, the 14th Amendment to the Constitution prohibits payments to aid insurrection, and the 1997 Hyde Amendment on reimbursement does not apply to those justly convicted. As former Justice Department prosecutor Jason Manning says, this is precisely why Trump so desperately needs this slush fund, which operates outside the law. The courts may block the scheme, but in any case, these shenanigans will forever make Trump’s name synonymous with corruption.
As a reminder, Cuba has restored its power grid following a massive blackout.
Trump also confirmed the U.S. intention to intervene in Cuba.