Treasury SLAMS Booz Allen Contracts

Treasury yanks all contracts from Booz Allen Hamilton, delivering long-overdue justice for the massive leak of President Trump’s tax returns and data on 406,000 Americans.

Story Highlights

Treasury cancels 31 contracts worth $4.8 million annually and $21 million total due to firm’s failure to safeguard IRS data.
Charles Littlejohn, Booz Allen contractor, leaked Trump’s taxes to New York Times and wealthy Americans’ data to ProPublica from 2018-2020.
Action by Secretary Scott Bessent enforces accountability early in Trump’s second term, causing Booz Allen stock to plunge over 11%.
Booz Allen claims leak happened on government systems, but Treasury holds firm on inadequate safeguards.

The Massive IRS Leak Revisited

Charles Edward Littlejohn worked as a Booz Allen Hamilton contractor for the IRS from 2018 to 2020. He deliberately sought the role to access President Trump’s tax returns. Littlejohn stole and leaked Trump’s confidential data to The New York Times. He also disclosed tax information on roughly 406,000 individuals and businesses, including Elon Musk, to ProPublica. Prosecutors called it the largest unauthorized IRS disclosure in history. Littlejohn pleaded guilty in October 2023 and received a five-year prison sentence in 2024.

Treasury’s Decisive Action in 2026

On January 26, 2026, Treasury Secretary Scott Bessent announced the cancellation of all 31 contracts with Booz Allen Hamilton. These contracts carried $4.8 million in annual spending and $21 million in total obligations. Bessent stated Booz Allen failed to implement adequate safeguards for sensitive IRS taxpayer data. The move enforces strict accountability for contractors handling confidential information. No prior administration took such comprehensive action despite the breach’s scale.

Booz Allen Hamilton condemned Littlejohn’s actions and asserted the leak occurred on government systems, not theirs. The firm claims it stores no taxpayer data and had limited monitoring access on federal networks. Booz Allen expressed intent to discuss the matter with Treasury. Shares dropped more than 11% by early afternoon following the announcement.

Trump Administration Delivers Accountability

President Trump’s second term prioritizes securing sensitive data and punishing those who enable leaks against conservatives. This cancellation revives scrutiny of the 2018-2020 scandal that targeted Trump and high-profile patriots. Treasury’s step protects taxpayer privacy, a core American value eroded under prior lax oversight. It signals to federal contractors that negligence in safeguarding citizen data carries real consequences, aligning with demands for limited but effective government.

Broader Impacts on Contractors and Taxpayers

The decision saves taxpayer dollars and shifts contracts to firms with stronger security. Booz Allen faces short-term revenue loss and long-term trust erosion for sensitive work. Industry peers now face heightened scrutiny on data safeguards. Taxpayers whose data was exposed gain symbolic reassurance of privacy protections. Politically, it counters past media exploitation of leaks, reinforcing conservative principles of individual liberty and accountability over government overreach.