Treasury Cancels All Booz Allen Contracts Over the Leak of Trump's Tax Returns

On January 26, 2026, the Treasury Department canceled its contracts with Booz Allen Hamilton, citing the firm's "failed" data safeguards. Reported values put the terminated work at roughly $21 million. The stated basis was the conduct of Charles Littlejohn, an IRS contractor employed by Booz Allen who leaked Trump's tax records to The New York Times and tax data on wealthy taxpayers to ProPublica; Littlejohn was sentenced to five years in prison in 2024. Booz Allen's stock fell on the announcement.

The termination was announced three days before the president personally sued the same agencies over the same leak, and the Treasury statement supplied a finding of failed safeguards that aligns with the theory of that private suit. Contract termination decisions are ordinarily made on procurement grounds by contracting officers; here the action followed conduct that had already been criminally prosecuted six years after the fact, at a moment of direct personal financial interest to the president.

On January 29, Trump, his sons Eric and Donald Jr. and the Trump Organization sued the IRS and Treasury over the leak, seeking at least $10 billion.