GSA reserves judgment on Trump hotel lease
President-elect Donald Trump will breach his contract with the federal General Services Administration if he does not fully divest "himself of all financial interests in the lease for" his hotel on Washington's Pennsylvania Avenue, four House Democrats said Wednesday.
In a letter to the GSA, the Democrats said they were briefed by the GSA’s deputy commissioner, who told them that Trump needed to give up all managerial control and ownership of his hotel.
Trump signed a lease with the GSA when he redeveloped the Old Post Office building just blocks from the White House.
The lease reads: "No member or delegate to Congress, or elected official of the Government of the United States or the Government of the District of Columbia, shall be admitted to any share or part of this Lease, or to any benefit that may arise therefrom; provided, however, that this provision shall not be construed as extending to any Person who may be a shareholder or other beneficial owner of any publicly held corporation or other entity, if this Lease is for the general benefit of such corporation or other entity."
“The Deputy Commissioner confirmed repeatedly during the briefing that GSA reads this provision as we do, which is a categorical ban on the President of the United States or any other elected official having any financial interest in this lease, or taking any financial benefit from it. He explained that this provision is a standard clause that is included in many GSA leases create a ‘level playing field’ and protect the interest of the American people,” says the letter to GSA Administrator Denise Turner Roth.
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Rep. Elijah Cummings of Maryland, ranking member of the Oversight and Government Reform Committee; Rep. Andre Carson of Indiana, ranking member of the Transportation and Infrastructure Subcommittee on Economic Development, Public Buildings and Emergency Management; Rep. Gerry Connolly of Virginia, ranking member of the Oversight and Government Reform Subcommittee on Government Operations; and Peter DeFazio of Oregon, ranking member of the Transportation and Infrastructure Committee, signed the letter.
But GSA issued a statement Wednesday that seemed to push back against the Democrats' letter, at least until more information is provided.
"GSA does not have a position that the lease provision requires the President-elect to divest of his financial interests. We can make no definitive statement at this time about what would constitute a breach of the agreement, and to do so now would be premature. In fact, no determination regarding the Old Post Office can be completed until the full circumstances surrounding the President-elect’s business arrangements have been finalized and he has assumed office," the statement reads. "GSA is committed to responsibly administering all of the leases to which it is a party."
Following the GSA statemen,t Cummings released one of his own that said the Democrats still stand by their letter.
“We understand GSA’s position that this breach has not yet occurred, will not occur until Donald Trump is sworn in as president, and is officially viewed as a ‘hypothetical’ issue until that time. We also share GSA’s hope that the agency will not have to address this issue if President-elect Trump divests his ownership in the lease before then," Cummings said. "But the simple fact is that GSA informed our staffs that they interpret this lease provision as prohibiting any elected official from having any ownership interest in the lease, and we stand 100% behind our letter.”
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