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ISSUE

Trump's Enrichment

Published:2017-Apr-07
Last Updated:2020-Mar-20
Principal Writer:Rob Dennis and Barry Shatzman

Issue Sections

Understanding The Issue
Emoluments

Reported News

Donald Trump
Government
Executive Branch

Related Bills

MAR-A-LAGO Act

2017 (HR-1711)

No TRUMP Act

2017 (HR-1452)

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The Constitution prohibits a president from profitting while in office

The domestic emoluments clause of the Constitution specifically prohibits the president from receiving any government compensation other than a salary.

The Constitution contains a similar prohibition against the president receiving any emoluments from a foreign government. Some of Trump's business dealings may be in violation of that, also.

Foreign governments doing business with Trump

Among those leasing space at Trump Tower in New York, for instance, are the Industrial and Commercial Bank of China, which is owned by the Chinese government, and the Abu Dhabi Tourism and Culture Authority, which is owned by the United Arab Emirates government.

A week after the 2016 election, a special event was held for about 100 foreign diplomats at the new Trump International Hotel in Washington, D.C. The hotel has hired a "director of diplomatic sales" to arrange business with foreign states.

The Embassy of Kuwait held its National Day celebration at the hotel in February 2017, and Bahrain and Azerbaijan also booked the hotel for events in December of that year. The Georgian ambassador to the United Nations posted a glowing review of the hotel on Twitter.

Similar issues arise at dozens of other Trump properties in the United States and internationally.

State attorney generals sue Trump

In June 2017, the attorneys general of Maryland and the District of Columbia filed a lawsuit in the 4th U.S. Circuit Court of Appeals, claiming that Trump violated the emoluments clause by profiting on this businesses while president.

In July 2019, a three-judge panel from the court dismissed the suit, ruling that the states lacked standing.

The states appealed to have the case heard by the full court. In May 2020, the full court reinstated the case.

Members of Congress sue Trump for not seeking approval

In June 2017, Sen. Richard Blumenthal and approximately 200 other members of Congress sued Trump for violating the foreign emoluments clause.

In February 2020, the District of Columbia Circuit Court of Appeals dismissed the lawsuit, ruling that the representatives had no standing to sue because it is up to Congress itself to deny any foreign emoluments.

In October 2020, the Supreme Court refused to hear an appeal of that ruling - effectively ending the lawsuit.

Watchdog organization sues Trump

In January 2017, the organization Citizens for Responsibility and Ethics in Washington (CREW) filed a lawsuit claiming that Trump is violating the foreign emolument's clause, which is creating a conflict of interest for U.S. foreign policy.

The lawsuit was filed on the behalf of restaurant and hotel owners claiming that Donald Trump's business siphon customers away from theirs due to Trump being president.

Diplomats from several countries have said they would use Trump-owned businesses to curry favor with Trump.

"Isn't it rude to come to his city and say, 'I am staying at your competitor?' " said one foreign diplomat.

The lawsuit asks that Trump stop violating the emoluments clause, and that he be required to release financial records to confirm that he no longer is illegally profiting from these businesses.

In December 2017, U.S. District Judge George Daniels dismissed the case, ruling that CREW lacked standing.

CREW appealed the ruling.

In September 2019, a 3-judge panel reinstated the case.

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