Treasury Cancels Booz Allen Contracts Following Trump Tax Return Leak

Avery K. Bristow

Published: January 26, 2026 10:03 PM ET

The U.S. Treasury Department has terminated its contracts with Booz Allen Hamilton in response to a significant security breach. This decision follows the sentencing of former contractor Charles Edward Littlejohn for leaking sensitive tax information, including that of former President Donald Trump, to media outlets.

Treasury Cancels Booz Allen Contracts

In April 2024, Littlejohn was sentenced to five years in prison after pleading guilty to charges related to unauthorized disclosures of taxpayer data. This breach involved sensitive information about high-profile individuals, which he provided to The New York Times and ProPublica between 2018 and 2020. Prosecutors labeled these leaks as “unparalleled” in the history of the IRS.

Background on Booz Allen Hamilton

Booz Allen Hamilton is a major defense and national security firm based in McLean, Virginia. Despite the termination of certain contracts, the company still maintains numerous agreements with other federal agencies. This includes contracts with the Defense Department and Homeland Security.

Contract Details and Financial Impact

Treasury held 31 contracts with Booz Allen Hamilton.
Annual spending totaled approximately $4.8 million.
Total obligations were reported at $21 million.

Treasury Secretary Scott Bessent criticized Booz Allen for failing to implement effective safeguards for sensitive data. The statement noted that the firm had access to confidential taxpayer information through its IRS contracts.

Booz Allen’s Response

In defense, Booz Allen condemned Littlejohn’s actions and asserted that it has zero tolerance for legal violations. The firm maintained its cooperation with government investigations, which reportedly led to Littlejohn’s prosecution.

Market Reactions

Following the announcement, Booz Allen’s stock price saw a significant decline. Shares dropped from $102 to $91 on the New York Stock Exchange.

Booz Allen’s recent quarterly SEC filing indicated that it faces risks associated with its relationships with the U.S. government, including potential reputational damage due to negative publicity regarding its contractors.

The cancellation of the contracts marks a pivotal moment for Booz Allen Hamilton as it navigates the fallout from this breach. The implications for the firm’s future dealings with the U.S. government remain to be seen, but the recent developments underscore the critical need for robust data protection measures.