Donald Trump, the President-elect of the United States, is reportedly operating his transition team through 'secret funds' raised without disclosing donors and with unlimited contributions, according to the daily New York Times (NYT) on the 24th (local time).
According to the report, Trump has not yet signed a memorandum of understanding with the General Services Administration (GSA). Once this agreement is signed, the transition team can receive up to $7.2 million (approximately 10.1 billion KRW) in federal funds, but individual donations are limited to $5,000 (about 7 million KRW) per person, and donor information must be disclosed.
The NYT stated, "Trump is the first President-elect to avoid signing an agreement with the GSA," adding that "he is currently able to raise unlimited funds from anonymous donors to cover expenses such as staff salaries, travel costs, and office space related to the transition preparation." The transition team, officially known as 'Trump Pence 2025 Transition, Inc.,' is set up as a 'dark money nonprofit organization,' which means it is not obligated to disclose who the donors are.
However, this approach has raised concerns among ethics experts. This is because those seeking favor with the second Trump administration can donate directly to the President-elect. Unlike during the election, foreign nationals are also allowed to donate. Heath Brown, a public policy professor at John Jay College of Criminal Justice, which studies presidential transitions, said , "It is unclear who donates how much and what they receive in return," adding, "Most Americans would want to know who is paying these costs." Max Steyer, president of the Public Service Partnership, also pointed out that disclosure rules are intended to prevent donors from receiving private benefits through their contributions before the new administration takes office.
The Trump transition team has previously confirmed several times its intention to sign an agreement with the GSA. However, the NYT noted that the deadline has already passed and there has been no progress since the election. Democratic Senator Elizabeth Warren sent a letter to the Joe Biden administration expressing concern that the Trump transition team’s refusal to sign the agreement is a 'gray area.' She also requested clarification on any discussions between the Biden administration and the transition team regarding this matter. In response, Brian Hughes, spokesperson for the Trump transition team, explained, "We are constructively continuing to cooperate on all agreements envisioned under the Presidential Transition Act."
Additionally, Trump has not signed separate contracts with the Department of Justice as well as the GSA. As a result, the Federal Bureau of Investigation (FBI) under the Department of Justice has been unable to conduct background checks for security clearances on individuals nominated for key positions in the next administration by Trump. The NYT criticized this, stating, "As a result, private firms are being used for candidate vetting," and warned, "there is a possibility that federal authorities may not properly verify key candidates appointed by Trump."
The Trump transition team also has not signed a memorandum of understanding with the White House that would allow candidates and other staff to access federal agencies and classified information before the inauguration on January 20 next year. To sign this, Trump must submit and disclose an ethics plan addressing how he will resolve conflicts of interest. However, the NYT reported that this has not yet been done.
The NYT noted that, in theory, the Internal Revenue Service (IRS) could audit the Trump transition team and request donor information, but even in that case, the IRS is unlikely to disclose the donor list. Georgetown University professor Brian Galle remarked, "Considering the political sensitivity of the transition team, I would say the probability of an IRS audit is zero."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
