Trump overcharged Secret Service by 300% for accommodations at his hotels

1 month ago

Donald Trump billed the government for Secret Service accommodations at his hotels many times over what other guests were charged, particularly foreign dignitaries, according to a report released Friday from Democratic members of the House oversight committee.

Describing the former US president’s term in office as “the world’s greatest get-rich-quick scheme”, the report’s authors referred to documents obtained by subpoenas of the Mazars firm, Trump’s accountants, citing guest logs for Trump International hotel in Washington, DC, between September 2017 and August 2018.

The hotel “charged as much as 300% or more above the authorized government per diem”, for Secret Service hotel rooms, according to the report.

It added: “Not only did former President Trump’s D.C. hotel routinely charge the Secret Service more than the government rate, it frequently charged the Secret Service more than it did other patrons, including members of a foreign royal family and a Chinese business interest.”

Eric Trump has said previously that the Trump organization let Secret Service agents “stay at our properties for free”. But the report calls that assertion into question, noting that the agency was charged “far in excess of approved government per diem rates and even many times the rates charged to hundreds of other patrons—including some of the rooms rented by the Qatari royal family and Chinese business interests—for rooms used by agents protecting members of the Trump family.”

The report follows up investigative reports made when Democrats controlled the House oversight committee. When Republicans took the House majority in 2023, new committee chairman James Comer ended the committee’s lawsuits to obtain records and refused to issue new subpoenas. The report by the committee’s Democratic minority relies on documents obtained earlier.

A 156-page report on Trump’s business dealings by House Democrats released in January noted that four businesses owned by Trump’s family conglomerate received at least $7.8m in payments in total from 20 countries during his four years in the White House.

While Trump was in office, Republicans made regular use of Trump International hotel while visiting Washington. Democrats on the committee cited three people Trump appointed to the federal bench, eight ambassadors, five people who later obtained presidential pardons like Dinesh D’Souza and Ken Kurson, and numerous other state and federal officials who stayed there on official travel.

The US constitution’s emoluments clause states that a president may receive no payments from the federal government other than a salary. Previous presidents have divested from business interests that could conflict with the clause. Jimmy Carter famously sold his peanut farm in Georgia before taking office. Trump refused to do so, and took efforts to shield his personal and business finances from public scrutiny.

The US supreme court dismissed two cases accusing Trump of violating the emoluments clause in January 2021, ruling that the issue was moot because he was no longer president.

Trump has disparaged the emoluments issue in prior comments, likening it to the earnings made by Barack Obama on book sales to foreign universities.

The hotel made about $150m in revenue over the course of Trump’s term in office, but incurred net losses of about $70m largely due to the pandemic, according to previous reports from the oversight committee.

Trump sold the lease on the 263-room hotel, known as the Old Post Office building, in 2022 to a Florida-based investment group, CGI Merchant Group. Since the hotel reopened as a hotel in the Waldorf Astoria chain in June 2023, spending by Republican groups there has cratered, according to a report by Citizens for Responsibility and Ethics in Washington, an oversight group that sued Trump over emoluments issues.

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