Government-Funded Landlord Trump Hypocritically Attacks Government Spending

President Donald Trump is making good on his promised threat to “dismantle Government bureaucracy” and “cut wasteful expenditures,” issuing orders to choke off the funding pipeline for federal grants and assistance programs.

The hypocrisy is breathtaking.

Because government spending, particularly the generous big-landlord benefits baked into U.S. law and tax policy, forms the very foundation of Trump’s own wealth. The Trump real estate fortune was built by hundreds of millions of dollars in government subsidies and huge tax breaks, none of which are available to the working people Trump is hurting with his current attacks.

Trump became wealthy the traditional American way: he was born into it. As most thoroughly described in Samuel Stein’s excellent 2019 book, Capital City: Gentrification and the Real Estate State, Donald’s father Fred’s real estate empire began with Brooklyn and Queens housing developments financed by the Federal Housing Administration (FHA). For some of those Trump developments, the path was literally cleared by government demolition of existing homes and buildings. Fred Trump’s appetite for government funding was so voracious that he was investigated by the Senate Banking Committee for defrauding post-World War II government housing programs by lying about the costs of his projects.

That was not the only investigation targeting Fred Trump’s government-funded properties. His Maryland buildings were so decrepit and his ignoring of the residents’ pleas for help and city orders to repair so blatant that the elder Trump was actually arrested in 1976 for operating a “slum property.” A U.S. Department of Justice discrimination lawsuit during the same era showed that the Trump properties systematically blocked Black prospective renters, using racist practices like attaching to their applications a paper bearing a big letter “C”—for Colored—so they could be rejected out of hand.

Fred Trump’s appetite for government funding was so voracious that he was investigated by the Senate Banking Committee for defrauding post-World War II government housing programs by lying about the costs of his projects.

That federal housing discrimination lawsuit, filed in 1973, did not just name Fred Trump. It also included the company’s president, his 27-year-old son Donald.

Donald Trump soon followed in his father’s footsteps by exploiting government programs to develop his buildings. The benefits included an unprecedented 40-year tax abatement, funding that was designed to support low-income neighborhoods, sweetheart deals to privatize public land, and government bonds used to finance his developments. “Donald Trump is probably worse than any other developer in his relentless pursuit of every single dime of taxpayer subsidies he can get his paws on,” a New York deputy mayor told the New York Times in 2016.

For example, the famous Trump Tower benefited from over $163 million in tax abatements provided by New York politicians whose campaigns Trump helped fund. That money was part of what the Timesestimated was nearly a billion dollars Trump received in government grants and tax breaks for his New York properties alone, not counting the government benefits for his properties in Florida, Nevada, and Atlantic City. "Donald Trump's business wouldn't be possible but for major government subsidies,” Timothy O'Brien, author of TrumpNation: The Art of Being the Donald, toldNPR.

Trump’s dependence on government funding is more than matched by the taxpayer dollars hoovered up by his designated government waste czar Elon Musk. As CNN has reported, the world’s richest person reached his status thanks to government loans and contracts that propped up Tesla and SpaceX in their vulnerable beginning stages. Musk still rakes in billions of dollars from government contracts and government-mandated payments to Tesla by other automakers.

“The foundation for Musk’s financial success has been the U.S. government,” tech analyst Daniel Ives told CNN.

We know that the Trump-Musk attacks on federal government programs are deeply harmful to vulnerable people, devoted civil servants, and communities and organizations trying to make the world a better place. Less well known is that Trump and Musk both owe their fortunes and careers to the very government spending they demonize now. They used government programs to climb to great heights, and now are intent on pulling up the ladder behind them.