Watchdog Group Sues Trump Administration Over $100 Million in Alleged Misused Taxpayer Funds

A federal watchdog group has filed a lawsuit against the Trump administration, alleging that it misused taxpayer funds through the Freedom 250 project for private and political purposes without congressional approval.

On Tuesday, Public Employees for Environmental Responsibility (PEER) filed the lawsuit against the U.S. Department of the Interior (DOI) in the U.S. District Court for the District of Columbia. The legal action follows unanswered Freedom of Information Act (FOIA) requests submitted in February, which sought records related to the use of public funds for Freedom 250—the organization overseeing events such as the Grand Prix around the National Mall and the construction of Trump’s independence arch.

The DOI did not respond to the FOIA requests, prompting PEER’s lawsuit. The group alleges that taxpayer money is being used with “no transparency, no accountability, and no guardrails.”

“America’s 250th anniversary celebration is supposed to be an occasion for strengthening public trust in our democratic institutions, not eroding it,” Tim Whitehouse, executive director of PEER, said in a press statement on Monday. “In contrast, Freedom 250 is a privately managed slush fund.... It epitomizes what is wrong with politics today.”

PEER’s lawsuit outlines several alleged abuses, including:

• The Trump administration is redirecting $100 million in taxpayer funds from America 250 to Freedom 250 without congressional approval.
• Mixing private funding and public taxpayer money without proper oversight.
• Selling “access to President Trump” for up to $2.5 million.
• Soliciting foreign donations.
• The DOI allegedly pressured federal workers to include Freedom 250 branding in their official email signatures, which PEER claims could violate the Hatch Act.

The Trump administration has not yet publicly commented on the lawsuit.