Trump-backed organizer of America’s 250th birthday events may have duped donors, report from House Democrats alleges

(CNN) — Donors who intended to support a bipartisan nonprofit that’s organizing celebrations for America’s 250th anniversary were allegedly redirected — without their knowledge — to a separate nonprofit behind events being promoted by President Donald Trump, according to a report from a group of House Democrats, citing confidential, unnamed sources.

The interim report, compiled by Democratic staff on the House Natural Resources Committee, includes accounts from unnamed sources about donors who wanted to give to the America250 nonprofit, which is overseen by a bipartisan congressional commission, being given incorrect wire instructions so that their money would flow to the Trump-backed Freedom 250.

“A gift solicited in the name of the nation’s nonpartisan birthday commission could thus be redirected without the donor’s knowledge, by an entity created to serve the President’s priorities,” the report said.

If true, the actions could constitute “potential wire fraud and charitable solicitation fraud,” according to the report, which doesn’t detail how much money was diverted, if at all.

The 41-page report claims Trump allies sought to sideline America250 while putting the president at the center of the nation’s anniversary and “selling” access to him in exchange for donations. Freedom 250’s activities are largely overseen by top Trump aides, and it has taken steps to brand itself as the “nonpartisan” group “leading the celebration” of America’s birthday.

The report echoes complaints from outside watchdog groups about a lack of transparency around the finances and operations of Freedom 250, a subsidiary of the National Park Foundation launched late last year to carry out a slew of 250th programming that Trump hopes will “renew national pride.”

Among the events organized by Freedom 250, the group is hosting Trump’s Great American State Fair on the National Mall. An IndyCar race in Washington, DC, and the Patriot Games, a youth athletic contest where two teenaged victors will split a $250,000 scholarship prize, are on the books for August.

A spokesperson for Freedom 250, Danielle Alvarez, called the claims in the report “categorically false” in a statement.

“This so-called ‘report’ is nothing more than a partisan smear from politicians who would rather manufacture division than celebrate America’s 250th birthday alongside the rest of the country,” she said.

CNN has also reached out to the White House and the National Park Foundation for comment.

The report details an ongoing struggle between Freedom 250 and America250 over taxpayer funds that committee Democrats allege left the bipartisan nonprofit with a shortfall of $100 million.

Citing news reports and confidential interviews conducted by staff, the report said the Trump administration has refused to hand over federal funding it had promised to America250.

Last year, Congress allocated $150 million to 250th celebrations in the “One Big Beautiful Bill,” and the report contends that White House officials and America250 agreed the group would receive $100 million of those funds. However, according to the report, White House officials informed America250 in November that it would only receive $50 million.

Yet, the report said America250 has so far only received half of those funds – $25 million – and has “struggled to execute planned programming amid financial uncertainty and misalignment with Freedom 250.”

An America250 spokesperson told CNN last month that most financial support for its major July Fourth events comes from “private sources.” When asked about reported tensions with Freedom 250 over sponsors and federal funds, the spokesperson said America250 supports “private sponsors having the flexibility to work with all organizations planning events and initiatives” for the 250th.

Rosie Rios, chair of America250, said in a statement Thursday that the organization will “continue to focus on the values-based programming approved by our bipartisan Commission at the local, state, national and international levels, including once-in-a-lifetime celebratory moments during the 4th of July weekend.”

“We are supportive of the many other organizations planning events for the 250th at the federal, state and local level, so all Americans have ample opportunities to join in the celebration,” she added.

Alvarez, the Freedom 250 spokesperson, criticized America250, saying the commission had “nothing to show for” the years and money spent on the nation’s birthday.

“We stepped in to rescue our nation’s 250th birthday from years of wasted time, wasted money, and failed planning,” she said.

The National Park Foundation told committee Democrats in a letter last month that the majority of Freedom 250’s operating funds come from “federal funds appropriated by Congress specifically for the 250th anniversary commemorations,” according to the report. Federal records show $68 million has been sent from the Department of Interior to the foundation, which has the ability to distribute the funding to Freedom 250.

The report also mentions Freedom 250 sponsorship packages that include VIP event access, speaking roles at the national Fourth of July celebration and an “historic photo opportunity” with Trump for people who meet donation benchmarks.

The National Park Foundation told Democrats on the committee that it was not involved in the development of Freedom 250’s promotional material or donor-benefit packages, according to the report.

Like America250, Freedom 250 can maintain the anonymity of its donors. However, Freedom 250’s connection to the White House has caught the attention of watchdog groups and Democrats who are demanding that Freedom 250 make its donor identities public.

Freedom 250 lists about two dozen sponsors on its website. A number of these, like Palantir, Lockheed Martin and Oracle, have large federal contracts to provide data and defense services. Others, like Ultimate Fighting Championship and Penske Corp., are led by Trump allies Dana White and Roger Penske, respectively.

When asked last month whether Freedom 250 would commit to publicly disclosing its donors, CEO Keith Krach told CNN in an interview: “We’re all about accountability and transparency.”

For its part, the National Park Foundation has also said that both public and private Freedom 250 funds received or expended will be accounted for through its standard financial reporting and audit processes.

In an interview on June 25, before the report’s release, Rep. Jared Huffman, a California Democrat who serves as ranking member on the Natural Resources Committee, said he hopes to more aggressively investigate Freedom 250 if the Democrats retake the House in November. Committee chairs have subpoena power.

“There certainly are red flags waving everywhere about the corrupt quality of this whole enterprise, but we may not be able to tell the full story until sometime next year,” he said.

This story has been updated with additional information.

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