WASHINGTON – In a significant decision, the U.S. Treasury Department has terminated its agreements with Booz Allen Hamilton. This follows the arrest and imprisonment of a former contractor from the firm who disclosed sensitive tax information about some of America’s wealthiest individuals, including former President Donald Trump, to the media.

The decision aligns with efforts by the Trump administration to retaliate against those it views as adversaries of the president and his supporters.

Back in 2024, Charles Edward Littlejohn, an ex-IRS contractor from Washington, D.C., associated with Booz Allen Hamilton, was handed a five-year prison sentence after admitting to leaking tax records of Trump and others to various news organizations.

Littlejohn reportedly provided data to The New York Times and ProPublica from 2018 to 2020, in what prosecutors described as an unprecedented breach in the IRS’s history.

According to court records, Littlejohn strategically applied for a contractor position with the intent to access Trump’s tax returns, meticulously planning the extraction of data to avoid raising internal alarms.

The Treasury Department notes that it maintains 31 contracts with Booz Allen Hamilton, amounting to $4.8 million in yearly expenses and $21 million in total commitments.

Treasury Secretary Scott Bessent said in statement that the firm “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.”

A representative from Booz Allen Hamilton was not immediately available for comment.