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Maryland and D.C. sue Trump over foreign payments

<p>The attorneys general from Maryland and Washington, D.C., are planning to file a "major lawsuit" against President Donald Trump.</p><p>According to <a href="https://www.washingtonpost.com/local/dc-politics/dc-and-maryland-to-sue-president-trump-alleging-breach-of-constitutional-oath/2017/06/11/0059e1f0-4f19-11e7-91eb-9611861a988f_story.html?utm_term=.144312afe29a" target="_blank">a report from The Washington Post</a>, the suit accuses Trump of violating the Constitution by letting his businesses accept payments from foreign governments.</p><p>Trump already faces <a href="http://www.newsy.com/stories/watchdog-group-plans-to-sue-trump-over-foreign-payments/" target="_blank">a similar lawsuit</a> filed earlier this year by a liberal watchdog group.</p><p>And dozens of Democratic lawmakers <a href="http://www.newsy.com/stories/democrats-plan-to-sue-president-trump-over-his-conflicts/" target="_blank">have promised to sue Trump</a> for maintaining some of his business ties while in office.</p><p>But the Post says this new lawsuit centers on Trump's decision to maintain ownership of his company after becoming president.</p><p><b>SEE MORE: <a href="http://www.newsy.com/stories/ivanka-trump-leads-workforce-policy-discussion/">Ivanka Trump Leads White House Discussion For Workforce Policy Week</a></b></p><p><a href="http://www.newsy.com/stories/trump-s-sons-will-manage-business-during-his-presidency/" target="_blank">In January</a>, Trump handed his business over to his sons, Donald Trump Jr. and Eric Trump. He used a financial trust to try to avoid conflicts of interest, but the president maintains his ownership.</p><p>Maryland Attorney General Brian Frosh and D.C. Attorney General Karl Racine claim that trust isn't enough.</p><p>Trump told the public he'd keep his White House duties and private business interests separate. But the two attorneys general say he's broken that promise.</p><p>For example, <a href="https://www.forbes.com/sites/danalexander/2017/03/24/after-promising-not-donald-talk-business-with-father-eric-trump-says-president-give-him-financial-reports/#701831f0359a" target="_blank">Eric Trump has said</a> he will continue to give his father regular updates about the company while he's in office.</p><p>And the Trump Organization <a href="http://www.newsy.com/stories/trump-organization-could-be-violating-emoluments-clause/" target="_blank">promised to donate</a> any foreign government payments. But last month, the company said it couldn't really track them all down.</p><p>If Frosh and Racine can proceed with the lawsuit, they told the Post they plan to ask for Trump's personal tax returns.</p><hr><b>Trending stories at <a href="http://www.newsy.com">Newsy.com</a></b><ul class="inline-related-links"><li><a href="http://www.newsy.com/stories/melania-and-barron-trump-move-into-the-white-house/">Melania And Barron Trump Now Call The White House 'Home'</a></li><li><a href="http://www.newsy.com/stories/sen-schumer-invites-trump-to-testify-before-the-senate/">Sen. Schumer Invites Trump To Do Something Few Presidents Have Done</a></li><li><a href="http://www.newsy.com/stories/ivanka-trump-leads-workforce-policy-discussion/">Ivanka Trump Leads White House Discussion For Workforce Policy Week</a></li></ul>
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The state of Maryland and the District of Columbia are taking President Trump to court.

A lawsuit filed Monday in federal court says Trump is violating the Constitution's Foreign Emoluments Clause, which prohibits the president from accepting payments from foreign governments without the consent of Congress.

The suit cites the president's luxury hotel in Washington, which has been at the center of concerns about conflicts of interest, and his worldwide network of hotels, golf courses and other commercial properties.

Maryland and the district also argue that they themselves are being harmed economically -- because their businesses have to compete with Trump's, and because their governments face pressure to provide Trump with permits and tax breaks.

"The president is bound by oath to 'faithfully execute' his office and 'preserve, protect and defend the Constitution of the United States," the lawsuit says, and the president must "disentangle his private finances" from domestic or foreign powers to honor that oath.

"Never before has a President acted with such disregard for this constitutional prescription," it says.

The suit was filed by the attorneys general of Maryland and the district, both Democrats.

Despite a pledge to isolate himself from the business, Trump held on to his assets and placed them in a trust in his name. That arrangement means he will benefit from the success of the business, even if he doesn't reap the rewards until after he leaves office.

The suit argues that Maryland the District of Columbia have been harmed by Trump's ongoing ownership. They cite convention centers and other properties in Maryland and the district that compete with the Trump hotel.

In addition, the suit says states have standing to sue because they entered a contract, the Constitution, that prohibits the president from receiving emoluments. The suit says that not just hotel payments but tax breaks and permits count as emoluments.

Maryland and the District of Columbia argue that they should be shielded from "undue pressure to provide emoluments to the president," and that other states can "curry favor from the president by providing emoluments that other states lack."

The suit asks the court for an injunction blocking Trump from accepting foreign money. Lawyers will seek access to Trump's personal tax returns as part of the legal process known as discovery, Maryland Attorney General Brian Frosh told reporters.

The White House had no immediate comment.

A similar lawsuit was filed in January, moments after Trump was inaugurated, by Citizens for Responsibility and Ethics in Washington, a government watchdog organization.

Since then, a nonprofit restaurant group, a New York hotel and restaurant owner, and a woman who books events at hotels in Washington have joined the suit as plaintiffs.

On Friday, the Justice Department asked a federal judge to dismiss that case.

CREW is outside counsel on the new lawsuit filed by the attorneys general.

The Trump Organization has promised in the past to take steps to address some ethics concerns. It told lawmakers in April that it would "track and identify" revenues received by its hotels from foreign governments, which it would then donate to the U.S. Treasury.

But in documentation sent to lawmakers the company said it would be "impractical" to track everyone. That means it the business will not try to identify people who haven't specifically identified themselves as representing a foreign government.

Representative Elijah Cummings, the top Democrat on the House Oversight Committee, blasted that plan.

He told the company in a letter last month that Trump should either divest his ownership or get permission from Congress to accept all sources of foreign money if it's too difficult to identify those payments.