❓WHAT HAPPENED: The U.S. Department of the Treasury has canceled all contracts with Booz Allen Hamilton following leaks of tax information, including tax returns belonging to President Donald J. Trump, by a former contractor.
👤WHO WAS INVOLVED: Former Internal Revenue Service (IRS) contractor Charles Edward Littlejohn, the Department of the Treasury, Secretary Scott Bessent, Booz Allen Hamilton, and President Trump.
📍WHEN & WHERE: The leaks occurred between 2018 and 2020, with Littlejohn sentenced in January 2024. The Treasury’s announcement was made on January 26, 2026.
💬KEY QUOTE: “Canceling these contracts is an essential step to increasing Americans’ trust in government.” – Treasury Secretary Scott Bessent
🎯IMPACT: The Treasury Department is terminating 31 contracts with Booz Allen Hamilton, valued at $4.8 million annually and $21 million in total obligations.
The U.S. Department of the Treasury is canceling all contracts with Booz Allen Hamilton after a former contractor leaked tax information belonging to thousands of people, including President Donald J. Trump. The contractor, Charles Edward Littlejohn, had worked for Booz Allen Hamilton and was sentenced to five years in prison in 2024 after pleading guilty to the leaks.
Littlejohn provided tax data to The New York Times and the leftist website ProPublica between 2018 and 2020, a breach that prosecutors described as “unparalleled in the IRS’s history.” According to the Treasury Department, the leak impacted approximately 406,000 people, based on Internal Revenue Service data.
Treasury Secretary Scott Bessent stated on Monday, “President Trump has entrusted his cabinet to root out waste, fraud and abuse, and canceling these contracts is an essential step to increasing Americans’ trust in government. Booz Allen failed to implement adequate safeguards to protect sensitive data, including the confidential taxpayer information it had access to through its contracts with the Internal Revenue Service.”
The National Pulse reported in January 2024 that Littlejohn deliberately sought employment as a contractor to access President Trump’s tax returns and devised methods to extract data without raising internal suspicions. At his sentencing, Littlejohn admitted, “I made my decision with full knowledge that I would likely end up in a courtroom to answer for my serious crime. I used my skills to systematically violate the privacy of thousands of people.”
The Treasury Department has 31 contracts with Booz Allen Hamilton, worth $4.8 million in annual spending and $21 million in total obligations.
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