May 3, 2022 - Politics & Policy

Trump entities agree to pay $750K to settle D.C. inauguration lawsuit

Former President Trump during his inauguration in January 2017.

Former President Trump during his inauguration in January 2017. Photo: Alex Wong/Getty Images

The Trump Organizations and other entities tied to former President Trump agreed Tuesday to pay $750,000 to settle a lawsuit with the D.C. attorney general over payments to the Trump International Hotel in Washington during his 2017 inauguration.

Why it matters: The lawsuit, filed in January 2020, alleged that Trump's inaugural committee coordinated with the former president's business to overpay for event space.

  • It claimed that the committee violated its purpose as a nonprofit by paying up to $1 million to the Trump family through payments for the event space.

What they're saying: "We clawed back $750,000 from the Trump Organization to give to local nonprofits educating youth about democracy and civics," D.C. Attorney General Karl Racine said in a tweet Tuesday.

  • "We’re resolving our lawsuit and sending the message that if you violate DC nonprofit law—no matter how powerful you are—you'll pay," he added.
  • He said D.C. would use the money received from the Trump entities to give two charities, the Mikva Challenge Grant Foundation and DC Action, $375,000 each.

The other side: "Given the impending sale of The Trump International Hotel, Washington D.C., and with absolutely no admission of liability or guilt, we have reached a settlement to end all litigation with Democrat Attorney General Racine," Trump said in a statement Tuesday.

The big picture: The Trump Organization, the former president's inaugural committee and the Trump Hotel denied any wrongdoing in the settlement.

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Editor's note: This article has been updated with comment from Trump.

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