Trump's Business Ties Enter Spotlight Again - Morning Brew

Since before he was inaugurated, President Trump’s business ties have drawn scrutiny under a previously obscure part of the U.S. Constitution: the “emoluments” clause. That scrutiny waltzed back onto the political scene last week, when two different appeals courts held hearings for cases that have been ping-ponging around the legal system. 

First, an appeals panel in Washington, D.C., looked down their noses at an emoluments lawsuit brought by 200+ congressional Democrats. Judges said the case wasn’t likely to make it through judicial review. 

Second, a full appeals court in Richmond, VA, debated an emoluments case brought by the attorneys general of Maryland and D.C. 

• In July, an appellate panel dismissed the lawsuit, saying it was not a "real” case. On Thursday, the full court debated whether that panel was right to do so. 

The backstory: Designed to prevent corruption, the emoluments clause prohibits federal officials from receiving gifts or payments from foreign governments unless approved by Congress. 

How that applies to Trump: While the president put his business holdings in a blind trust, he is not completely removed from his company, the Trump Organization, and is able to withdraw money whenever he wants. The organization comprises over 500 businesses, and some of them do business with foreign governments. 

The plaintiffs argue that violates the emoluments clause

^{"Trump hotel Washington DC" (CC BY 2.0) by Maxence Peniguet}

One Trump Organization business has earned the bulk of the emoluments ire—the Trump hotel in D.C. Foreign leaders have booked the glitzy, 263-room liability, which is leased from the federal government.

The Maryland/D.C. case zeroed in on the hotel. But two conservative judges (Bush and Reagan appointees) said the courts shouldn’t be weighing in on what constitutes an emolument without input from Congress. Plus, one pointed out, even if Trump himself were forced to leave the organization, foreign officials could still try to curry favor with his family members who run the company. 

• In October, the Trump Organization put the hotel on the market. If it sells, the Maryland/D.C. case will likely get nixed. 

Twist alert: There’s one other emoluments case bouncing around the legal system, brought by the Trump Organization’s hospitality industry rivals in New York. It was thrown out in 2017, but in September, the Second Circuit court reinstated the case. Trump has asked the full court to rehear it. 

Bottom line: These cases are sending judges to their Constitution for Dummies books. Trump is the first president to be sued on emoluments grounds, and last Thursday’s hearing in Richmond was the first time in U.S. history a full federal appellate court heard an emoluments case.

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Trump's Business Ties Enter Spotlight Again - Morning Brew
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