Donald Trump has long been synonymous with wealth, luxury, and business.
But when he started his first term as President of the United States, The New Yorker (1) reported his finances were in a “tight spot.” At the start of his second term, that they were in an even tighter one.
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According to The New York Times (2), Trump faced mounting financial pressure ahead of his second term. Trump Tower in Lower Manhattan couldn’t cover its mortgage, his golf courses didn’t have enough players to cover operating costs and a slew of legal judgments threatened to take more of his wealth.
Six months into his second term, however, The New Yorker published an investigation showing his finances had “vastly improved” to the tune of $3.4 billion, driven in part by foreign deals and cryptocurrency ventures.
Trump’s ongoing $10 billion lawsuit against the IRS could add even more. He sued the agency in January, alleging it leaked his tax information to news outlets (3) during his first term.
Donald Trump’s wealth “is now built on monetizing the family name in new ways and, intentionally or not, the office of the presidency,” The New York Times (2) wrote.
The Trump Organization, now run by his two eldest sons, Eric and Donald Jr., has seen a boon in profits from his time in the White House. If he has success in his case against the IRS, he stands to profit even further.
Where did the $3.4 billion come from?
Although the Trump Organization has a self-imposed rule against doing business directly with foreign governments (4), it has struck eight overseas deals so far in Trump’s second term.
For example, Eric and Donald Jr. are involved in a Qatar project for a Trump-branded golf club and villa, developed in part by a government-owned company. Similar projects in Vietnam (5) and Saudi Arabia have generated tens of millions in fees for the Trump Organization and could curry favor with U.S. officials.
Five of the eight overseas deals are in the Persian Gulf. Much of the money flowing to the Trump Organization, and Trump himself, wouldn’t be possible without his presidency, The New Yorker (1) reported.
Cryptocurrency has also been a huge driver of wealth. One Trump-linked venture, World Liberty Financial, has earned at least $1.2 billion (6) since its founding in 2024.
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The Associated Press reported the Trump family sold nearly 50% of this crypto business for $500 million to a UAE government-linked company run by a member of the UAE royal family just before Trump’s inauguration (7). A UAE government fund then invested $2 billion in a stablecoin issued by World Liberty through an offshore crypto exchange, Binance, generating tens of millions of dollars in interest for the Trump-backed company.
Peter Baker, a White House correspondent for The New York Times, has said the Trumps “have done more to monetize the presidency than anyone who has ever occupied the White House.”
Opinion columnist Jamelle Bouie (8) wrote that “the president and his family have leveraged his office to the tune of nearly $4 billion,” adding that Trump’s business investors include large corporations and foreign nationals seeking to get on the good side of the U.S. government.
Whether or not conflicts of interest are at play, Trump and the Trump Organization are clearly seeking significant growth in their bottom line during his time in the White House.
What’s at stake in the IRS lawsuit?
Another key factor in Trump’s $10 billion lawsuit against the IRS, which alleges the agency leaked his tax information between 2018 and 2020.
On April 17, Trump asked a judge pause the case for 90 days while his legal team works with the IRS toward a settlement (3). On April 24, however, U.S. District Judge Kathleen Williams raised concerns about whether the case should proceed at all, citing potential conflicts of interest, according to ABC News (9).
The lawsuit has drawn scrutiny from tax and ethics experts because the president is effectively suing a federal agency he oversees (3).
Democracy Forward filed a friend-of-the-court brief in February calling the case “extraordinary,” arguing that the president controls both sides of the litigation and raising the possibility of collusive legal tactics (3).
“Regardless of whether Trump suffered actual harm from the release of his tax returns, the fact of the matter is that it is a profound violation of the spirit of public service – to say nothing of the oath of office – to sue his own government for cash,” Bouie put it bluntly. “And for his officials to then arrange a settlement would be unconscionable (8).”
Williams has ordered both sides to submit briefs explaining why the case should move forward. A hearing is set for May 27. Both sides must demonstrate the lawsuit is “a dispute between parties who face each other in an adversary proceeding,” reported ABC News (9).
That could be challenging given Trump’s position of power.
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Article Sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
The New Yorker (1); The New York Times (2); Associated Press (3); Associated Press (4); Associated Press (5); The Wall Street Journal (6); Associated Press (7); The New York Times (8); ABC News (9)
This article originally appeared on Moneywise.com under the title: Trump was in a financial ‘tight spot’ before office. Now he’s up $3.4B, with $10B more possibly to come
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
