The New York Times reported on the 24th that President-elect Donald Trump is running his transition team with “secret funds” and is raising unlimited funds without disclosing the donors.
According to the report, President-elect Trump has yet to sign a memorandum of understanding with the General Services Administration (GSA), which allows him to collect unlimited funds from anonymous donors to pay for staffing, travel, and office space related to preparing for the transition.
Trump is the first president-elect to avoid signing an agreement with the GSA. If he signs the agreement, his transition team will receive up to $7.2 million in federal funds, but donations from individuals will be limited to $5,000 per person and donors must be disclosed. The Trump transition team has not disclosed its fundraising goal, donors, or where the money will be used.
Officially known as Trump Vance 2025 Acquisition Inc. (INC.), the transition team is designated as a “dark money nonprofit” and is not required to disclose its donors to the IRS. The Times pointed out that this move by the Trump camp has raised concerns among ethics experts. Those who want to look good in the second Trump administration can donate directly to the president-elect without disclosing their names or potential conflicts with the government, and unlike campaign contributions, foreigners can also donate.
In theory, the IRS could audit the Trump transition team and request information on donors, but even then, the IRS is unlikely to release the names of donors. “Given the political sensitivity of the transition team, I would say the odds of being audited are zero,” said Brian Galle, a Georgetown University professor.
In addition, President-elect Trump has not signed a separate contract with the Department of Justice, as well as an MOU with the GSA, so the Federal Bureau of Investigation (FBI), which is under the Department of Justice, is unable to conduct the background checks necessary for the security clearance of those nominated by President-elect Trump for key positions in the next administration.
The Trump transition team is known to vet candidates through private companies, and the New York Times pointed out that this may prevent federal authorities from properly vetting candidates nominated by Trump for key positions. In addition, the Trump transition team has not signed an MOU with the Biden administration White House that would allow the candidates and other staff to access federal agencies and classified information before the inauguration on January 20th of next year.
To sign this, President-elect Trump must submit and disclose an ethics plan that includes how he will resolve conflicts of interest, but he has not done so yet.