Donald Trump is secretly raising fund millions of dollars for his transition effort without identifying donors, an unprecedented move that endangers a degree of transparency like no other moment in U.S. history.
Here’s why.
Trump’s Secret Transition Fund: Why donor secrecy gives cause for concern
President-elect Donald Trump is starting his second term, but the transition process is ‘raising some eyebrows because of the veil of secrecy surrounding how it is funded’. Unlike in past presidential transitions, Trump has chosen not to disclose the names of the donors that are financing his transition team. This decision breaks tradition and raises significant issues with regard to transparency, ethics, and conflict of interests.
Breaking Tradition: Donor Secrecy in Trump’s Transition
Traditionally, the rules of accepting money by incoming presidents are very specific and mostly relate to transparency and restrictions on the role wealthy donors can play in their transition teams. For example, the Biden administration, as it transitioned in 2020, followed very strict guidelines on disclosure, which included capping individual donations at $5,000 and refusing donations from corporations, political action committees, and foreign nationals.
However, Trump’s transition team, led by figures such as Linda McMahon and Howard Lutnick, has chosen a different path. By operating as a “dark money” nonprofit, the Trump team is not required to disclose its donors, even to the Internal Revenue Service (IRS). As a result, there is no public record of who is financially supporting the transition or how much they are contributing. What raises the stakes is that donors can be foreign nationals—something barred in other forms of political fundraising.
The Dangers of Secret Fundraising
This level of secrecy around the Trump transition fund has alarmed ethics experts, who say this is unprecedented. Heath Brown, a professor of public policy at John Jay College, voiced his concerns, stating that without transparency, it is impossible to know how much influence donors may have over the incoming administration. When powerful interest groups and foreign entities are allowed to make anonymous donations, there is a risk of these donors seeking favors or preferential treatment from the new government.
Furthermore, the absence of a signed agreement with the General Services Administration (GSA), which historically provides federal funding for transitions, has led Trump’s team to raise private funds without any restrictions. Previous transitions have agreed to disclose and contribution limits in exchange for federal funds, which Trump’s team has avoided.
Potential Conflicts of Interest
One of the main reasons for requiring transparency in transition funding is to avoid potential conflicts of interest. Without knowing who is financially backing the transition, it is unclear whether any individuals or corporations might be seeking special access or influence over Trump’s policies once he takes office. Moreover, without background checks from the FBI—because necessary agreements were never signed—the possibility remains that appointees will be vetted by private firms without proper oversight.
How Trump’s Transition Is Different From Past Ones
Again, while the Trump transition team decides not to tap federal funds or disclose donations, which is a departure from previous administrations. When Barack Obama won the presidency in 2008, the transition raised $4.5 million and disclosed donations, keeping contributions under the $5,000 cap. Again, the Biden administration raised more than $22 million during its transition, but with full transparency.
Even in the Trump’s 2016 transition, transparency agreements were met, but this year, all the lack of disclosure and failure to sign necessary agreements present a cause for concern. According to some experts, the IRS could be able to audit the Trump transition, and even if that were the case, contribution details would remain private.
Conclusion: Transitions in Politics Mean Importance of Transparency
Secrecy regarding the transition fund of the Trump administration bespeaks a radical departure from precedent and raises gravest concerns about the transparency of processes in the U.S. political arena. Given that the next administration will soon take charge, making sure donors are named and appropriate background checks have been conducted help to ensure public trust and prevent undue influence. The need for oversight and transparency is now greater than it ever has been because of the nation’s increasing complexities in political and economic challenges.
Frequently Asked Questions
-
Why is Donald Trump not disclosing his transition donors?
Trump has resorted to “dark money” – a system where he can collect funds without making public the names of the donors, contrary to past tradition of having such donations in the open.
-
Can foreigners donate to a U.S. presidential transition?
Yes. Unlike campaign contributions, foreign nationals can donate to funds raised for presidential transitions.
-
How does Trump’s transition differ from previous ones?
Only the transition team of Trump hasn’t signed agreements with the GSA or the Justice Department, and they are raising private funds which are undisclosed without any donor limits.
-
What are the risks associated with not having donor disclosure during a transition?
There is a risk of possible conflicts of interest. Rich donors or even foreign nationals could seek beneficial treatment from the incoming administration due to lack of disclosure.
-
Do the Trump transition team people have to undergo background checks before they take the appointments?
No, because Trump has not signed agreements with the DOJ, so the FBI has made no official background checks on his appointees.