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Democrats accuse Trump-linked fundraisers of fraud over diverted donations for America's anniversary

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Democrats accuse Trump-linked fundraisers of fraud over diverted donations for America's anniversary
News

News

Democrats accuse Trump-linked fundraisers of fraud over diverted donations for America's anniversary

2026-07-03 02:29 Last Updated At:02:40

WASHINGTON (AP) — Consultants tied to President Donald Trump may have engaged in financial fraud, tricking donors who wanted to support the nation’s bipartisan 250th anniversary organizer into sending their money instead to a rival group set up by his administration, according to a report released Thursday by House Democrats.

The report draws in part on interviews by Democratic staffers of the House Committee on Natural Resources. Those interviews suggest that donors seeking to celebrate America fell for a bait-and-switch that, if true, could have violated various criminal statutes.

Donors who were intending to contribute funds to America250, a bipartisan committee created by Congress, were instead given the banking and routing numbers for a different but similarly named group, Freedom 250, the Democratic report says.

The key difference was that Freedom 250 was set up under the auspices of Trump's Republican administration to be “a vehicle for a Christian nationalist, partisan, and Trump-centered vision of American identity,” according to the report.

Freedom 250, which has denied the report's claims, has focused on staging big splashy events largely held in Washington, such as the UFC cage fight at the White House on Trump's 80th birthday, the Great American State Fair on the National Mall and the upcoming July 4 celebration featuring a Trump speech and a fireworks extravaganza the president is touting as the “show of a lifetime.”

Freedom 250 spokesperson Danielle Alvarez dismissed the Democrats' report as “categorically false” and a “partisan smear from politicians who would rather manufacture division” than celebrate a national milestone.

“Freedom 250 remains fully committed to uniting Americans at this historic moment and giving all Americans a spectacular birthday they can be proud of — and we won’t be distracted by those rooting for it to fail,” said Alvarez, who previously served as a spokesperson for the Trump campaign and the Republican National Committee.

Democrats allege in the report that this fits a broader pattern in which Trump hijacked the nation’s 250th birthday celebration, redirecting tens of millions of dollars in both taxpayer money and private donations to boost “the President’s ego, political ideology and pet projects.” Much of the spending was directed to companies connected to Trump’s political operation, including the event planners for the Trump rally that immediately preceded the Jan. 6, 2021, riot by a mob of his supporters at the U.S. Capitol.

“The American people are the big losers in this,” said Rep. Jared Huffman, the ranking Democrat on the Natural Resources Committee. “I’m old enough to remember the bicentennial in 1976. No one cared about party labels or political agendas, religious agendas or anything else. Donald Trump stole that. He took this unifying America250 moment, and he made it all about himself.”

The White House did not immediately respond to an email seeking comment.

The Democratic report recounts how the Trump administration sought to control America250, the nonprofit arm of the U.S. Semiquincentennial Commission established by Congress in 2016 to plan celebrations for this year’s anniversary of the signing of the Declaration of Independence.

After the Trump administration faced pushback, Freedom 250 was created last fall as a limited liability corporation that is a wholly owned subsidiary of the National Park Foundation, the fundraising arm of the National Park Service.

Freedom 250’s sole employee appears to be CEO Keith Krach, a wealthy Trump supporter who served in the State Department during the president’s first term.

Democrats said this structure enables Freedom 250 to operate as a “financial black box,” shielded from having to comply with competitive bidding, accounting and transparency rules that would typically apply to a federally controlled entity receiving tens of millions of dollars in taxpayer funds and private donations.

Under Trump’s big tax and spending cuts bill approved by Congress last year, $150 million in federal funds was allocated to the Interior Department for events celebrating the 250th anniversary. America250 was expecting $100 million of that, though it has received only $25 million, according to the Democratic report.

Even as a member of a congressional oversight committee, Huffman said that he has no way to know exactly how much taxpayer money has been redirected into Freedom 250 by the Trump administration.

The Democrats alleged Krach, the Freedom 250 CEO, traveled in January to the World Economic Forum in Davos, Switzerland, to personally solicit foreign government officials and business leaders for money to help fund America’s birthday celebrations. The report says Trump appointees at the State Department, including some ambassadors, have also held fundraising events overseas and sent out written solicitations seeking foreign donations for Freedom 250.

Krach did not respond to an email seeking comment. Alvarez denied the group accepts foreign donations.

The publicly named sponsors of Freedom 250 include defense contractors, oil conglomerates and big tech companies that have federal contracts, that have regulatory issues before federal agencies and in some cases that Trump has personally invested in. Democrats said the arrangement creates the appearance of a cozy pay-to-play scheme in which donors to Trump’s pet projects could get favorable treatment from his administration.

There has been no public disclosure of how much corporate money has been raised. Freedom 250 also allows donors to request to remain anonymous, and the contributions are tax deductible.

The allegation of potential criminal wrongdoing stems from fundraising by Meredith O’Rourke, who served as the national finance director for Trump’s successful 2024 presidential campaign and as a board member for the parent company of Trump’s Truth Social media platform.

O’Rourke’s firm, Forward Strategies, initially worked as a contractor for America250, which coordinated with the White House to organize last year’s military parade in Washington to coincide with Trump’s 79th birthday. O’Rourke is also a primary fundraiser for other projects Trump has championed, including the construction of the White House ballroom, the planned renovation of the Kennedy Center and the Garden of American Heroes.

After the creation of Freedom 250 last year, the report alleges, corporate donors were pressured to withdraw fundraising commitments to America250 and shift their financial backing to the new Trump-backed entity.

Democrats say they have also interviewed donors who were misled by fundraisers, including O’Rourke, into believing they were contributing to America250 but were given wire transfer instructions that routed their money to a bank account controlled by Freedom 250 — a ruse the report says could constitute wire fraud.

O’Rourke did not respond to a text message seeking comment.

Diego Lopes celebrates during a featherweight bout against Steve Garcia during UFC Freedom 250 on the South Lawn of the White House, Sunday, June 14, 2026, in Washington. (AP Photo/Mark Schiefelbein)

Diego Lopes celebrates during a featherweight bout against Steve Garcia during UFC Freedom 250 on the South Lawn of the White House, Sunday, June 14, 2026, in Washington. (AP Photo/Mark Schiefelbein)

President Donald Trump arrives on the Freedom 250 train, Wednesday, July 1, 2026, in Medora, N.D., for the opening of the Theodore Roosevelt President Library. (AP Photo/Julia Demaree Nikhinson)

President Donald Trump arrives on the Freedom 250 train, Wednesday, July 1, 2026, in Medora, N.D., for the opening of the Theodore Roosevelt President Library. (AP Photo/Julia Demaree Nikhinson)

KANSAS CITY, Mo. (AP) — Charlie Riedel has been a staff photographer for The Associated Press for 25 years after working 17 years for small newspapers in rural Kansas. He is based in Kansas City and covers the Chiefs, Royals and college sports. Riedel has also covered the Super Bowl, the Olympic and major golf tournaments. When not shooting sports, he has covered major news events including hurricanes, oil spills, tornados and wildfires.

I was covering a watch party for Wednesday's United States-Bosnia-Herzegovina match. My assignment was pretty straightforward so with the game being shown on a big screen behind me, I spent most of my time just watching the crowd. I was looking for reactions to what was happening on the screen and other moments that illustrated the joy and enthusiasm shown by the mostly U.S. fans. This photo was less of a reaction to the on-field action, but a spontaneous moment when the crowd started tossing people in the air to celebrate. I knew I had the opportunity to document this event with a photo that differs from the typical photos of fans just screaming with excitement.

I shot the watch party mostly with a 12-24 mm extreme wide angle lens as I was stationed in a buffer between the crowd and the stage. Because of this, my subjects were often only a couple feet away from me so I needed to be able to shoot as wide as possible. When the crowd started tossing people in the air, I decided I needed to show the person airborne with the sea of people watching and would need to get higher to do that. I was able to gain a couple feet of height by standing on part of the metal structure that supports the retaining wall holding the crowd back from the buffer. That was not high enough, so while standing on that structure, I shot the scene with my camera held high above my head and and guessing at the focus. This technique to get a higher angle is commonly referred among photojournalists as a “Hail Mary” photo because you are shooting somewhat blindly and “hope and pray” you get photos that are in focus, exposed properly and composed well. This photo was shot with a 12-24 mm lens at 14 mm and an aperture of 4.5 to get a little extra depth of field. The shutter speed was 1/1600 of a second which was as slow as I thought I could go to stop the action. The camera was set on auto exposure and auto white balance as the light was constantly changing in intensity and color. ISO was 10,000.

I shot a handful of people getting tossed airborne — most of them didn’t go very high or flailed awkwardly. With this photo, it all came together. The framing of the photo puts the scene in perspective and is loose enough to show how high she flew, as well as the vast crowd watching and cheering her on. Then there is the young lady being thrown —everything fell into place with her expression and body language and those red cowboy boots were the icing on the cake. This photo illustrated the joy and excitement that came over the crowd as it became apparent Team USA would likely win this match and advance to the next round in the World Cup.

See more of AP’s World Cup coverage here

Fans celebrate during a watch party for a World Cup soccer match against Bosnia at the KC Live! entertainment district Wednesday, July 1, 2026, in Kansas City, Mo. (AP Photo/Charlie Riedel)

Fans celebrate during a watch party for a World Cup soccer match against Bosnia at the KC Live! entertainment district Wednesday, July 1, 2026, in Kansas City, Mo. (AP Photo/Charlie Riedel)

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