A federal judge has ruled that a lawsuit on the grounds that Donald Trump has violated the emoluments clause of the Constitution can proceed. The case, brought by the attorneys general of Maryland and Washington D. C., contends that profits the Trump Organization makes from foreign governments represent illegal actions by Donald Trump, who is the 100 percent owner of the Trump Organization. This is the first time a federal judge had ruled that the emoluments clause does apply to the president.
As the Washington Post reports, the ruling could allow the two attorneys general a detailed look into Trump’s businesses—giving them a view that has been hidden from the public, and even from investigations like that of special counsel Robert Mueller. And this ruling is important simply for the fact that it upholds the idea that making a profit off foreign governments is still a potential violation—even if that profit is made as part of doing business. Trump and Trump supporters have made a point that even George Washington had some overseas business, so it’s difficult to say that there is no level of profiting from agents of a foreign government allowed. But this case, should it clear the remaining hurdles and actually end up in court, should help define just what those limits may be.
When Trump first took office, it was clear that foreign governments were making a point of having officials stay at his D.C. hotel, and using Trump conference facilities for meetings. In 2017, it seems that Trump did $150,000 of business directly providing services, not real estate, to foreign governments. When Trump first took office, that seemed significant. But considering the tens of millions that foreign organizations plowed into Trump’s inaugural fund, or the $1.2 billion being channeled to Jared Kushner by the Qatar state bank after Trump helped hold Qatar hostage over the last year, the money behind those drinks and hotel rooms no longer seems all that significant.
Even so, the principle of the ruling could be vital, especially when it comes to making Trump’s finances more visible and accountable. Trump has made it clear that he will not reveal his taxes, and because of generally lax rules in real estate which have made that industry a favored vehicle for international money laundering, little is known about the details of Trump’s transactions with foreign individuals and companies. This may represent a unique opportunity to push back the curtain of TrumpCo and take a peek at some real numbers.
Neither the White House nor the the Justice Department, which is representing Trump’s interest in this case, made a comment on the ruling. But if this does move forward, it may be the first of several such actions.
With the DOJ continuing to insist that the case should be dismissed, there’s an increasing likelihood that the ultimate ruling in the matter will be handed down by the Supreme Court. That makes this another instance in which Trump could be anxious to bring Brett Kavanaugh, with his unmatched level of deference toward the executive branch, onto the bench in time to deal with any questions.