D.C.’s attorney general has accused former President Donald Trump’s inaugural committee of spending more than $1 million at Trump’s downtown D.C. hotel to benefit the Trump family.

Tyrone Turner / WAMU/DCist

D.C. Attorney General Karl Racine notched a partial victory Monday in his lawsuit against former president Donald Trump’s 2017 inaugural committee.

D.C. Superior Court Judge José M. López dismissed the attorney general’s claim that the committee had squandered $1 million in rental ballrooms at Trump’s downtown D.C. hotel. But he allowed another claim — that the committee had violated nonprofit law by using more than $1 million to benefit the Trumps — to move to trial.

“AG Racine sued Donald Trump’s Presidential Inaugural Committee for misusing nonprofit funds to enrich the Trump family,” a spokesperson for the attorney general’s office wrote in a statement. “The Inaugural Committee misspent more than $1 million in nonprofit funds to unlawfully benefit private interests. We cannot allow those in power to get away with using money to illegally enrich themselves and their families.”

Racine filed the lawsuit in January 2020, alleging that the committee had illegally overpaid for a ballroom at the Trump International Hotel for Trump’s 2017 inauguration celebration. The nonprofit booked the room over objections from committee staff and Trump aides, who said the charges were exorbitant and that the committee should consider other options, including the National Gallery of Art, which had offered up space for free.

In 2019, Trump was forced to dissolve the nonprofit Trump Foundation and pay $2 million in damages to eight charities after New York’s Attorney General sued him for improperly spending charitable dollars on his personal, business, and political interests.

Monday’s ruling dismisses Racine’s claims that the committee “wasted” money at Trump’s hotel, citing insufficient evidence that the money had been intentionally thrown away. That claim requires an exceptionally high burden of proof, the judge wrote.

But the ruling notes that Racine brought sufficient evidence to allow a charge of “private inurement.” It’s illegal in D.C. for nonprofits to use money for the private benefit of individuals.

“Did higher ranking Trump family officials have the ability to control the workings of the PIC [Presidential Inaugural Committee]?” Lopez wrote. “Did members of the PIC ignore internal recommendations to pay the Trump Hotel for services that could have been offered for free? If so, did they make those payments for strategic reasons, or for other purposes?”

Racine is asking the judge to make Trump’s company return the $1 million so it can be redirected to charity.