How Tulsi Gabbard Plans to Follow Donald Trump's Business Arrangement

Tulsi Gabbard would transfer one of her businesses to her husband if she is confirmed as director of National Intelligence, in a similar move to one made by President Donald Trump ahead of his first administration that drew accusations from critics of potential conflicts of interest.

As part of the nomination process, the former Democratic congresswoman had to file financial disclosures and an ethics agreement with the U.S. Office of Government Ethics before facing a confirmation hearing with the Senate Intelligence Committee.

In her ethics agreement, filed on January 18, Gabbard said she would resign from her positions at one of her businesses, TOA Studios LLC, and transfer her entire interest to her husband Abraham Williams, a cinematographer. In her accompanying financial disclosure, she said she has made $36,000 from the business since inception.

TOA Studios was incorporated in May 2022 in Hawaii, business filings show. The filings do not reveal the purpose of the business. Newsweek was unable to find more details of what business TOA Studios does or who its customers are.

"I will not participate personally and substantially in any particular matter that to my knowledge has a direct and predictable effect on the financial interests of TOA Studios LLC, unless I first obtain a written waiver," Gabbard pledged in her filing. She said another of her businesses, a much bigger one, would remain dormant.

Gabbard's move over TOA Studios copies a move Trump made in January 2017 when, prior to assuming office, the then president-elect told a news conference he was handing over his businesses to his eldest sons, Donald Trump Jr. and Eric Trump. At the time, the then director of the Office of Government Ethics Walter Shaub said Trump should divest his interests to avoid conflicts of interest. He said his arrangements did not meet the standards of previous presidents. Meanwhile, 23 Democratic senators sent a letter to Trump urging him to do the same but Trump faced no further action and his sons have retained control of his businesses since then.

Ethics experts suggested that Gabbard transferring her business to her spouse could create conflict of interest concerns.

Newsweek contacted representatives for Gabbard and the White House to comment on this story.

Greg Williams, director at the Center for Defense Information at the nonpartisan government corruption watchdog Project On Government Oversight, said Gabbard's proposed arrangement "does nothing to resolve the conflict of interest."

He told Newsweek: "As Gabbard's ethics agreement clearly states, appointees are required to resolve conflicts of interest that involve themselves and members of their immediate families. (First bullet—'Any spouse or minor child of mine') So Gabbard transferring ownership to her husband does nothing to resolve the conflict of interest. Recusing herself or getting a waiver for activities that effect the financial interests of TOA Studios does resolve the conflict of interest. She would need to likewise recuse herself from activities affecting all of her holdings."

He added: "The Office of Government Ethics (OGE) encourages appointees to establish blind trusts in which an OGE approved custodian divests any holdings that represent a conflict of interest. Once those holdings are replaced with other holdings unknown to the appointee, the conflict of interest is considered resolved."

Donald Sherman, the executive director and chief counsel for ethics watchdog Citizens for Responsibility and Ethics in Washington (CREW), said this arrangement created a risk that could result in recusal and prosecution.

"The conflict of interest risk related to Ms. Gabbard's stake in TOA Studios does not go away if she transfers the business to her spouse because federal law includes spousal conflicts as the basis for recusal and potential prosecution," he told Newsweek. "Regardless of whether she or her husband own the business, if confirmed, federal law bars Ms. Gabbard from participating in any specific matters that impacts the financial interests of the company."

"The magnitude of the risk depends on several factors, such as the nature of the company's clients," he continued—highlighting the possible example of the company doing business with foreign governments.

Newsweek was unable to establish whether the business is involved in government business or business with foreign countries.

Attorney Bradley P. Moss, who specializes in federal employment litigation, told Newsweek Gabbard might be able to comply with the ethics laws.

"This is a procedural step commonly taken by senior officials with outside business interests when they enter into Government service," he said. "It will require careful scrutiny by ethics officials during her tenure to either wall her off from matters implicating that business interest or to secure the necessary waiver required by the law."

Of the cabinet members who have submitted their ethics reports thus far, Lee Zeldin, Trump's pick to lead the Environmental Protection Agency, is the only other politician to have made such an arrangement. He said he will transfer his interest in Zeldin Strategies to his spouse, who is already employed by the public relations firm.

Other cabinet nominees have divested their businesses or have committed to not receiving payments other than passive income from companies they are involved in, or make their businesses dormant during the course of their government positions.

Gabbard's personal financial disclosure report also addressed Tulsi Media LLC, the holding company for her podcast The Tulsi Gabbard Show, from which she said she has made $373,000 from. She said it will "cease engaging in any business" upon her confirmation and "remain dormant."

The disclosures also showed that Gabbard owns three apartment complexes in Texas worth $55 million to $125 million.

Gabbard also holds stocks in Tesla, Rumble, Apple, which she pledged to divest after her confirmation, and she has also raked in cash from speaking engagements and through an advance for her book For Love of Country: Leave the Democrat Party Behind.

Gabbard's nomination is far from assured, with several key Republican senators having yet to commit to supporting her nomination. Gabbard's Senate hearing has been scheduled for January 30.