Donald Trump settles non-profit spending lawsuit with Washington, D.C.

Former President Donald Trump settled a lawsuit Tuesday with the District of Columbia over accusations of improperly spending non-profit funds, court documents show.

Trump agreed to pay $750,000 to settle the lawsuit that was filed against Trump’s Presidential Inaugural Committee, Trump International Hotel Washington D.C., and the Trump Organization.

The District of Columbia attorney general’s lawsuit accused the inaugural committee of spending more than $1 million in non-profit funds at the Trump-owned hotel.

It said the committee misused $1.1 million in charitable funds to “dramatically overpay” the hotel for event space, to throw a private party for the former president’s children and to pay a private debt held by the Trump Organization.

The suit was filed in 2020.

The inaugural committee raised $107 million for Trump’s inauguration in January 2017, more than doubling the previous record for any other incoming president.

“We clawed back $750,000 from the Trump Organization to give to local nonprofits educating youth about democracy and civics,” Attorney General Karl A. Racine wrote on Twitter.

“We’re resolving our lawsuit and sending the message that if you violate DC nonprofit law-no matter how powerful you are-you’ll pay.”

The money will be divided equally, with half going to the Mikva Challenge Grant Foundation, and the other half to the DC Action for Children Today DC ACT.

“Given the impending sale of the Trump International Hotel, Washington D.C., and with absolutely no admission of liability or guilt, we have reached a settlement to end all litigation with Democrat Attorney General Racine,” Trump said in a statement following the settlement.