Holiday money from the boss is usually a gift card or a nice bottle of wine for Christmas. But Natalie Harp, President Trump’s executive assistant, got $45,000.
The money showed up in Part 9 of her annual public financial disclosure report, the section where federal employees list gifts they’ve received. The entry is filed under “Cash gift for the holidays,” the source is “Donald J. Trump, Palm Beach, Florida,” and the value is $45,000.
Margo Martin, a communications staffer, also reported an identical $45,000 from the same source. So did Chamberlain Harris, deputy director of Oval Office operations. Waltine “Walt” Nauta, director of Oval Office operations, also reported $20,000 as a “Gift for holidays” from Trump.
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Harp, Martin and Harris each earn $150,000 a year, according to the White House’s annual report to Congress on staff salaries, so the gift was roughly a third of a year’s pay. Nauta earns $175,000.
Whether any of that broke a law is genuinely contested. One former White House ethics lawyer says it looks like it did. A former government ethics director says it may not. What they’re really arguing about is something that comes up in ordinary workplaces too: When is money from your boss a gift, and when should it be considered part of your pay?
The statute at the center of the argument
The law in question is 18 U.S. Code § 209, which says an executive branch employee can’t take “any contribution to or supplementation of salary” for their government work from any source other than the U.S. government. It affects the person paying too.
Richard Painter, former chief White House ethics lawyer for President George W. Bush and a critic of Trump, told The Washington Post the payments appear to cross that line. “He’s clearly trying to make it easier for them financially to work in government service at the White House,” Painter said. “You can’t do that.”
He drew the contrast himself: “It’s not like tipping the doorman on Fifth Avenue. These are U.S. government employees. If you want a job where you get tips, you shouldn’t be working for the U.S. government.”
Don Fox, former acting director of the U.S. Office of Government Ethics (OGE) under President Barack Obama, read it differently. The available facts don’t show a violation, he told the Post — that would take something like an aide saying they couldn’t live on the salary and Trump topping them up to keep them. He still called the payments “troublesome.” “I would feel somewhere between really uncomfortable and then beholden to the person who gave me such a large gift,” Fox said.
The White House rejects the premise entirely. A White House spokesperson said in a statement that Trump “has a longstanding practice of giving Christmas gifts to people in his orbit, including at times employees and aides, both in government and in his time in the private sector.”
The statement added that the gifts “have nothing to do with any of these individuals’ official government duties, and, therefore, are entirely permissible under relevant legal and ethical standards.”
No charges have been filed and no court or agency has found a violation.
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The gift rule most people have backward
There is a federal rule about gifts at work, and it runs the other way from what you’d expect. 5 CFR Part 2635, Subpart C bars employees from giving gifts up the chain to a boss, and bars bosses from knowingly accepting them. The worry is a junior staffer could be trying to buy favor.
None of that applies here. The rule defines a “boss” as any government employee “other than the President and the Vice President.” The president is written out of it, which is why the argument is about the salary law instead. Fox said a large payment to a subordinate is “not a circumstance that OGE ever really envisioned.” He added, “This just doesn’t happen.”
What this means for you
You are probably not getting an extra $45,000 out of the blue from your boss. The tax side of this still applies to you, though.
Anything your employer hands you that is cash or a cash equivalent, the Internal Revenue Service (IRS) counts as pay. It’s not a gift. There is an exception for de minimis benefits, or infrequent gifts of so little value that it would be impractical to count them as taxable income. Examples the IRS gives include flowers or fruit given as a get-well gift to an ill employee and occasional personal use of a company copy machine.
The IRS’s Publication 15-B says that cash and cash equivalents (except in very limited circumstances, like your boss giving you bus fare so you can make an overtime shift), “no matter how little,” never qualify as a de minimis benefit. So a fruitcake your company gives you at Christmas can be tax-free, but the gift card to go buy it isn’t.
So if you do get some holiday money:
- Check your final pay stub of the year. If a cash bonus or gift card isn’t in your taxable wages, you may owe at filing time.
- Don’t take the word “gift” at face value at work. If it’s cash, or it turns into cash, it’s pay.
Trump doesn’t sign these four aides’ paychecks — the U.S. government does — which is part of why the legal answer here isn’t obvious. But the ethics lawyers are arguing about the same thing the IRS wants to know about your Christmas bonus: Is it a gift, or is it pay?
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Godwin Oluponmile is a content specialist, SEO strategist and copywriter with seven years of expertise in finance, Web 3.0, B2B SaaS and technology. His work has been featured in publications such as Entrepreneur, HackerNoon, Blocktelegraph and Benzinga.
