Democrats to probe lucrative Trump family business deals if they win midterms

Highlights:

• Majority in House or Senate would give Democrats subpoena power and funds for expanded investigative staff
• Trump-linked crypto firms and Donald Trump Jr's 1789 Capital rank high on Democrats' target list
• Some Republicans may join inquiries, while companies weigh compliance against political and legal risks
• White House says Democrats 'baselessly' targeting Trump agenda

Corporate donors to US President Donald Trump's ballroom and participants in business deals brokered by Trump family members are expected to be among the first targets of investigations if Democrats take control of the House or Senate ​in November's midterm elections, multiple Capitol Hill staffers, lawmakers and attorneys told Reuters in recent days.

Control of either chamber would give Democrats subpoena power and funding to bolster investigative staff, enabling them to launch probes as early as February ‌and potentially triggering lengthy legal battles that would place the Trump family business empire squarely in the spotlight.

The investigations could dominate the second half of Trump's term after two years of dealmaking in which the Trump family expanded into crypto, drones, artificial intelligence and prediction markets, while the president's personal wealth grew by an estimated $2.2 billion, opens new tab.

"I don't think the Democrats are going to have patience. They're going to expect documents pretty quickly. You're not going to play the old run-out-the-clock game," said Ashley Callen, a lawyer with law firm Jenner & Block who was previously general counsel to Republican House Speaker Mike Johnson.

US House of Representatives Democratic Leader Hakeem Jeffries of New York told ​reporters on 17 September: "We're going to hold the crooks accountable, beginning on day one."

The Trump administration criticized the potential for investigations. "Democrats have no agenda to improve the lives of the American people, just plans to obstruct and baselessly target President Trump's commonsense agenda," ​White House spokeswoman Olivia Wales said in an emailed statement to Reuters.

Corporations are a ripe target for investigations because, unlike the White House, they cannot claim their activities are protected by executive privilege.

Of particular interest are Trump-linked ⁠crypto firms and Donald Trump Jr.'s venture capital firm, 1789 Capital, according to Democratic Representative Jamie Raskin of Maryland and Democratic Senator Richard Blumenthal of Connecticut, although both cautioned there is no definitive list of targets yet.

Companies with ties to Trump and his family are conducting urgent preparations, ​including hiring lawyers for internal audits and crisis communications firms for public outreach, according to interviews with corporate counsels, crisis management specialists, congressional staff and lawmakers.

Democratic Senator Sheldon Whitehouse of Rhode Island unveiled a report on Thursday, saying oil and gas companies won tax breaks, subsidies and looser environmental regulations after Trump ​asked them for $1 billion in donations during his 2024 presidential campaign, adding yet another potential avenue for investigation.

Focus on trump family

Adam Schiff, Democratic senator from California, sent a warning to companies not to delete any records related to transactions with Trump and his administration.

"We can make life very difficult for the administration if you abuse legitimate oversight requests of Congress," Schiff said in an interview, citing Congress' power over funding for agencies.

Among transactions Schiff is focused on is the proposed sale of a portion of Yosemite National Park to a private developer with ties to Republican campaign committees. "In this administration everything is for sale, including our most precious gems like ​Yosemite," he said.

But the prime target for Democrats appears to be the Trump family — especially Donald Jr., who has entered into a flurry of business deals since his father won office in November 2024.

"The First Family has been making money hand over fist," said Schiff.

Trump son-in-law Jared Kushner "is a corporate ​executive that we absolutely will need to talk to," said Raskin, who could become chair of the powerful Judiciary Committee if Democrats take control of the House.

He said Kushner has not responded to two letters inquiring about his private equity firm Affinity Partners' dealings with Mideast "oil monarchies and governments" while he also represents ‌the United States in ⁠diplomatic negotiations.

Raskin pointed to deals Kushner secured with Saudi Arabia, Qatar and the United Arab Emirates while serving as a presidential envoy. "That's an outrageous conflict of interest," he said.

Kushner is a US special envoy for peace but not a government employee. Federal employees are subject to rules prohibiting them from engaging in activities that could affect them financially.

Chad Mizelle, a lawyer for Kushner, said in a statement that allegations against him are false. "And to date, no one — not even Jared's critics — has identified a single applicable rule or regulation he has violated," Mizelle said.

Raskin also singled out a $620 million Pentagon loan to rare-earth startup Vulcan Elements announced some three months after an investment by Don Jr.'s 1789 venture fund.

"He seems to have a clairvoyant sensibility of exactly who is going to get government contracts and who is going to get favorable government regulatory treatment in the Trump administration," Raskin said.

In a statement to Reuters, a Vulcan spokesperson said the company "did not ​ask or solicit its investors to facilitate the Pentagon loan" and ​that it would continue to engage with Congress in "good faith."

1789 Capital ⁠hired top law firm Quinn Emanuel to handle congressional investigations and is already signaling its intention to rebuff Democratic inquiries.

"1789 Capital welcomes legitimate congressional oversight," it said in a response to Congress dated September 9, "but it has no intention of being held hostage to political gamesmanship."

In a statement to Reuters, a 1789 spokesperson said "Rep. Raskin has offered no proof of wrongdoing, only politically motivated accusations," adding that his letter demonstrated "a troubling lack ​of financial literacy."

Jeopardy for corporate executives

Republican Senator Kevin Cramer of North Dakota dismissed the need for such investigations and told Reuters that Democrats could face a backlash from voters by "fixating and obsessing on Donald ​Trump and his personal life and his ⁠dealings, rather than on the things that matter to the American people."

But some Republicans may join Democrats' efforts. Freshman Republican Senator John Curtis of Utah called for Don Jr. to be investigated for allowing a Russian oligarch to pay for his wedding parties in the Bahamas.

Firms will have to decide whether to quickly comply with investigations, which could incur Trump's wrath, some of the lawyers said. A failure to cooperate with Congress could result in legal jeopardy for executives and possible consumer blowback.

"There is the reputational risk always with any congressional investigation," said Kevin Edgar, a BakerHostetler law partner and former congressional aide.

One lawyer, who ⁠requested anonymity to protect ​clients, said an ideal outcome could actually be being sued by the White House to stop them from producing information on the grounds of executive privilege. "It gives them ​the ability to say: Mom and dad tell me what to do," the attorney said.

Some companies were already referring requests for information to the White House.

In a previously unreported July 1 letter seen by Reuters, ballroom contractor Clark Construction responded to a request about "ballooning costs" from Blumenthal by saying terms of the deal required all information come from the ​White House.

Blumenthal, who is in line to chair an investigations panel, told Reuters: "We will use our subpoena power, absolutely," if Democrats win control of the Senate in November.