The lawsuit was filed in US District Court for the District of Columbia on behalf of 17 Democratic members of the US House of Representatives Committee on Oversight and Government Reform. It accuses the acting head of the General Services Administration, Timothy Horne, of violating a nearly 90-year-old federal law and preventing lawmakers from conducting oversight by refusing to turn over records on the hotel requested months ago.
Located in the federally-owned Old Post Office building two blocks from the White House, the Trump Washington hotel has become a magnet for both political operatives and ethics complaints. After losing more than USD 1 million in its first two months of operation just prior to the election, the hotel's fortunes reversed after Trump became president, turning a USD 1.97 million profit as of August.
As president, Trump has declined to sell off his stake in the hotel despite a prohibition in the lease on elected officials obtaining any benefit that "may arise from the lease." Democrats have alleged that Trump's ownership of the property creates a conflict of interest and that, under his lease with the General Services Administration, he is obligated to sell his stake in the property.
"President Trump's refusal to divest his ownership interest in a company that contracts with the federal government raises numerous issues requiring congressional oversight," the committee's ranking member, Rep. Elijah Cummings, D-Maryland, and 16 other oversight Democrats said in the lawsuit. They were represented by Georgetown law professor David Vladeck and Scott Nelson of Public Citizen, a liberal advocacy group.
The plaintiffs' success hinges on a 1928 law that established what is known as "the seven-member rule." According to that law, if seven members of the House oversight committee join a request, a federal agency "shall submit any information requested of it relating to any matter within the jurisdiction of the committee."
Members of the committee requested information on the Old Post Office lease last December and received documents. When eight members made the request in February, however, they received no reply. The Democrats' demand runs head-on into a May legal opinion drafted by President Trump's Office of Legal Counsel, which informed federal agencies that they are not obligated to respond to information requests from the minority party.
Republicans did not join in the multiple requests for information to the GSA regarding the hotel earlier this year, and so did not have standing to participate in the lawsuit. Cummings accused the House Republicans of "aiding and abetting President Trump's ongoing abuses" and walling him off from congressional oversight.
A representative for the committee chairman, Rep. Trey Gowdy, R-S.C., said Gowdy declined to comment.
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