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Penalties for Corporate Violations Plummet by Double Digits Under Trump
New Analysis of 12 Agencies Shows Dramatic Decline of Enforcement Activities in Trump’s First Year, With Penalties Down as Much as 94 Percent
WASHINGTON
During President Donald Trump's first year in office, enforcement against corporate crime and wrongdoing declined dramatically, with total penalties for such violations plummeting from the final year of the Obama administration, according to a new report from Public Citizen.
In almost every federal agency under control of a Trump appointee - and most notably at the U.S. Department of Justice (DOJ), the nation's lead law enforcement agency - enforcement against corporations dropped, often plunging to just a small fraction of what it had been.
Public Citizen's report "Corporate Impunity" (PDF) tracked enforcement activities against corporate violators by 12 federal agencies overseen by a Trump administration official for the majority of Trump's first year in office. The report was co-released with Violation Tracker, a corporate enforcement database produced by the Corporate Research Project of Good Jobs First.
In 11 of the 12 agencies, the amount of penalties imposed on corporate violators declined, in many cases drastically. In 10 of the 12 agencies, the number of individual enforcement actions against corporate violators also declined significantly.
"When it comes to large corporations, the supposedly 'tough-on-crime' Trump administration is undertaking an epic retreat from law enforcement - slashing fines, declining to bring cases against corporate wrongdoers and cutting enforcement programs," said Robert Weissman, president of Public Citizen. "The message to big business couldn't be more clear: Feel free to run roughshod over rules that protect the air we breathe, the water we drink and the food we eat as well as ensure the safety of the cars we drive and protect us against bank rip-offs and consumer fraud."
Under Attorney General Jeff Sessions, total DOJ penalties against corporations fell 90 percent from $51.5 billion in President Barack Obama's last year to $4.9 billion in Trump's first year, and the number of enforcement actions against corporations fell by 22 percent from the Obama's last year. Plea deals dropped to 50 compared to 117 in Obama's last year.
In Trump's first year, EPA penalties dropped 94 percent - the most of any of the federal agencies analyzed in the report. (Public Citizen's analysis of EPA enforcement includes actions against corporations, municipalities and individuals.) Under former EPA Administrator Scott Pruitt, the agency decreased penalty sums against polluters from $23 billion in Obama's last year to $1.4 billion in Trump's first.
In one such case, the EPA announced five weeks before Trump's inauguration that it was seeking $4.8 million in penalties against the pesticide manufacturer Syngenta Seeds for violating safety rules that protect workers from being poisoned. Trump's EPA cut the penalty a year later to $550,000 - just 11 percent of the original fine.
The sharp decline in overall penalties holds true even excluding the extraordinary enforcement orders issued in the final years of the Obama administration, during which the government fined oil giant BP over the 2010 Deepwater Horizon spill and automaker Volkswagen for cheating emissions tests. Even excluding those cases, which were completed under Obama, total penalties under Pruitt still fell by 84 percent in Trump's first year.
Because enforcement actions can take years to complete, the steep declines at the agencies are especially noteworthy, considering most of the investigations would have begun under Obama and the agencies' career staff remain relatively unchanged.
"Trump's 'zero-tolerance' enforcement policy against first-time border crossings and street crimes has rightly grabbed headlines," said Rick Claypool, a Public Citizen research director. "But what makes this even more shocking is how these so-called tough on crime policies coincide with policies that decrease prosecutions and penalties for giant lawbreaking corporations."
The agencies included in the report are the U.S. Transportation Department's Aviation Consumer Protection Division (total penalties down 11 percent), the U.S. Interior Department's Bureau of Safety and Environmental Enforcement (down 13 percent), the Commodity Futures Trading Commission (down 80 percent), the Consumer Product Safety Commission (down 43 percent), the DOJ (down 90 percent), the U.S. Environmental Protection Agency (EPA) (down 94 percent), the U.S. Labor Department's Equal Employment Opportunity Commission (down 19 percent), the Federal Communications Commission (down 85 percent), the Federal Trade Commission (down 65 percent), and the Treasury Department's Office of the Comptroller of the Currency (down 53 percent) and Office of Foreign Assets Control (up 465 percent), and the U.S. Securities and Exchange Commission (down 68 percent).
Public Citizen is a nonprofit consumer advocacy organization that champions the public interest in the halls of power. We defend democracy, resist corporate power and work to ensure that government works for the people - not for big corporations. Founded in 1971, we now have 500,000 members and supporters throughout the country.
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'Gutter Racist' Hegseth Blocks Promotion of 'Exemplary' Black and Female Army Colonels
"Today’s news isn’t an anomaly," said leaders of the Democratic Women's Caucus and Congressional Black Caucus, "it is a part of a coordinated and sustained strategy to undermine and erase women and people of color."
Mar 27, 2026
In what's being called an "exceedingly rare" move, US Defense Secretary Pete Hegseth is blocking the promotion of two Black and two female colonels to one-star generals,
The New York Times reported Friday that some senior US military officials are questioning whether Hegseth acted out of animus toward Black people and women after the defense secretary blocked the promotion of the four officers despite the repeated objections of Army Secretary Daniel Driscoll, who touted what the Times called the colonels' "decadeslong records of exemplary service."
Military officials told the Times that Hegseth's chief of staff, Lt. Col. Ricky Buria, got into a heated exchange with Driscoll last summer over the promotion of another officer, Maj. Gen. Antoinette Gant—a combat veteran of the US invasions and occupations of Afghanistan and Iraq—to command the Military District of Washington, DC.
Such a promotion would have placed Gant in charge of numerous events at which she would likely be seen publicly with President Donald Trump. According to multiple military officials, Buria told Driscoll that Trump would not want to stand next to a Black female officer.
Pete Hegseth looked at a list of qualified officers and decided Black leaders and women had to go.That’s not leadership. It’s discrimination in plain sight.And every Republican who stays silent is complicit.
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— Rep. Norma Torres (@normajtorres.bsky.social) March 27, 2026 at 10:10 AM
A shocked Driscoll reportedly replied that "the president is not racist or sexist," an assessment that flies in the face of countless racist and sexist statements by the president, both before and during both of his White House terms.
Buria called the officials' account of his exchange with Driscoll "completely false."
White House Press Secretary Karoline Leavitt declined to discuss the matter beyond saying that Hegseth is “doing a tremendous job restoring meritocracy throughout the ranks at the Pentagon, as President Trump directed him to do.”
Military officials told the Times that one of the Black colonels whose promotion was blocked by Hegseth wrote a paper nearly 15 years ago historically analyzing differences between Black and white soldiers' roles in the Army. One of the female colonels, a logistics officer, was held back because she was deployed in Afghanistan during the US withdrawal whose foundation was laid by Trump during his first term. It is unclear why the two other colonels were denied promotions.
Although more than 40% of current active duty US troops are people of color, military leadership remains overwhelmingly comprised of white men. Hegseth, who declared a "frontal assault" on the "whores to wokesters" who he said rose up through the ranks during the Biden administration, told an audience during a 250th anniversary ceremony for the US Navy that "your diversity is not your strength."
Hegseth has argued that women should not serve in combat roles, although he later walked back his assertion amid pushback from senators during his confirmation process. Still, since Trump returned to office, every service branch chief and 9 of the military’s 10 combat commanders are white men.
Leaders of the Democratic Women's Caucus and Congressional Black Caucus issued a joint statement Friday calling Hegseth's blocking of the four colonels' promotions "outrageous and wrong."
"The claim that Hegseth’s chief of staff told the army secretary Trump would not want to stand next to a Black female officer at military events is racist, sexist, and extremely concerning," wrote the lawmakers, Reps. Yvette Clarke (NY), Teresa Leger Fernández (NM), Emilia Sykes (Ohio), Hillary Scholten (Mich.), and Chrissy Houlahan (Pa.).
"Time and time again, Trump and his administration have shown us exactly who they are—attacking and undermining Black people and women in the military, public servants, and women in power," the congressional leaders asserted. "It is clear they are trying to erase Black and women’s leadership and history."
"Today’s news isn’t an anomaly, it is a part of a coordinated and sustained strategy to undermine and erase women and people of color," their statement said.
"We've long known that Pete Hegseth is an unfit and unqualified secretary of defense appointed by Trump," the lawmakers added. "So it is absurd, ironic, and beyond inappropriate that he of all people would deny these promotions to officers with records of exemplary service. America's servicemembers deserve so much better.”
Sen. Jack Reed (D-RI), ranking member of the Senate Armed Services Committee, also issued a statement reading, "If these reports are accurate, Secretary Hegseth's decision to remove four decorated officers from a promotion list after having been selected by their peers for their merit and performance is not only outrageous, it would be illegal."
"Denying the promotions of individual officers based on their race or gender would betray every principle of merit-based service military officers uphold throughout their careers," Reed added.
Several congressional colleagues weighed in, like Sen. Tammy Duckworth (D-Ill.), a decorated combat veteran who lost her legs when an Iraqi defending his homeland from US invasion shot down the Blackhawk helicopter she was piloting. Duckworth said on Bluesky: "He says he wants to bring meritocracy back to our military. He says he has our warfighters' backs. But here he is, the most unqualified SecDef in history, denying troops a promotion that their fellow warfighters decided they've earned. Hegseth is a disgrace to our heroes."
Other observers also condemned Hegseth's move, with historian Virginia Scharff accusing him of "undermining national security with his racism and misogyny," and City University of New York English Chair Jonathan Gray decrying the "gutter racist" who "should be hounded from public life for the damage he’s caused."
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'Shameful': Trump Threatens to Redirect Student Loan Borrowers to Most Expensive Repayment Plans
More than 7 million borrowers booted from a Biden-era loan forgiveness program will have to quickly switch to a new plan using a system that's been backed up for months.
Mar 27, 2026
After axing a Biden-era student loan repayment program, the Trump administration is threatening to kick its millions of mostly low-income beneficiaries onto the government's most expensive plan unless they switch to a new one quickly.
The Washington Post reported on Friday that the Department of Education was beginning to email the more than 7 million people enrolled in the Saving on a Valuable Education (SAVE) program, telling them they needed to change their plan within the next 90 days.
Around 4.5 million of those borrowers earn incomes between 150% and 225%, allowing them to qualify for zero-dollar monthly payments under SAVE, which the Trump administration effectively killed in December after settling with Republican states who'd brought lawsuits against the program under former President Joe Biden.
Anonymous officials told The Post that those who do not switch plans within three months of receiving the email will automatically be re-enrolled in the Standard Plan. Unlike SAVE, which is income-based, the Standard plan has borrowers pay a fixed rate over 10 years.
Standard typically carries the highest monthly payments, and those transitioning to it from SAVE could pay more than $300 extra per month in some cases, with the poorest borrowers seeing the sharpest increases.
While 90 days may seem like plenty of time to switch to a less expensive repayment plan, it's not nearly that simple.
Due to the large exodus of borrowers, the Department of Education has struggled to process all the forms, processing only about 250,000 per month. Many borrowers who have tried to transition have found themselves waiting months for a reply.
To make matters more confusing, many of these borrowers will have to switch programs again soon, since all but one repayment program will be dissolved on July 1, 2028 as a result of last year's Republican budget law. The remaining plan will also be income-driven, though it is still expected to cost borrowers more each month.
According to a report released last month by the Century Foundation and Protect Borrowers, two groups that support loan forgiveness, nearly 9 million student loan borrowers are in default. During Trump's first year back in office, the student loan delinquency rate jumped from roughly zero to 25%, which it called "precedent-shattering."
"Much of the rise in delinquencies can be linked to the Trump administration’s actions aimed at increasing student loan payments," the report said. “The US Department of Education blocked borrowers from accessing more affordable payments through income-driven plans, having ordered a stoppage in application processing for three months and mass-denying 328,000 applications in August 2025. As of December 31, 2025, a warehouse’s worth of 734,000 applications sat unprocessed.”
Being in default has major ramifications for borrowers' finances. Those with delinquent loans saw their credit scores decrease by an average of 57 points during the first three quarters of 2025, dragging around 2 million of them into "subprime" territory, which forces them to pay thousands of dollars more for auto and personal loans and makes them more likely to have difficulty finding housing and employment.
The report estimated that if those booted from SAVE defaulted at the same rate as other borrowers, the number of student loan borrowers in distress could rise as high as 17 million.
According to Protect Borrowers, the typical family will pay more than $3,000 per year in additional costs as a result of the end of SAVE.
The end of SAVE comes as oil shocks caused by Trump's war in Iran have spiked gas prices and threaten to raise them throughout the economy, adding to the already elevated costs of food, housing, and transportation resulting from the president's aggressive tariff regime.
"In the middle of an affordability crisis driven by Donald Trump," said Sen. Elizabeth Warren (D-Mass.), "Trump is killing a plan that lowers student loan costs. It's shameful."
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With Everyone Looking for Iran War Off-Ramp, Experts Offer 'Exit Plan'
"The United States and Iran are trapped in a conflict in which each new escalation only deepens a shared, losing predicament... Sooner rather than later, both will confront the urgency of finding an off-ramp."
Mar 27, 2026
Multiple reports published in the last two days have indicated that President Donald Trump is seeking to wrap up his illegal war in Iran, which has significantly hurt his domestic political standing—partially by raising gas prices at a time when polls show US voters are primarily concerned about the cost of living.
While ending the Iran war will not be simple, some foreign policy experts believe that it can be done if both the US and Iran truly understand that deescalation is in both nations' best interests.
George Beebe, director of grand strategy at the Quincy Institute for Responsible Statecraft and former director of the CIA’s Russia analysis, and Trita Parsi, executive vice president of the Quincy Institute, have written an essay published on Thursday by Foreign Policy outlining what an achievable Iran "exit plan" would look like.
The authors acknowledged the immense challenges in getting both sides to meet one another halfway, but said this option is preferable to a drawn-out war that will leave both nations poorer and bloodied.
On Iran's side, argued Beebe and Parsi, a deal would involve renewing "its stated commitment to never pursue nuclear weapons," re-opening the Strait of Hormuz to all shipping vessels, and making a commitment "to denominating at least half of its oil sales in US dollars rather than the Chinese yuan."
The US, meanwhile, would "grant sanctions exemptions to countries prepared to finance Iran’s reconstruction" and "would also permit a specified group of states—such as China, India, South Korea, Japan, Turkey, Iraq, and others in the Gulf—to resume trade with Tehran and the purchase of Iranian oil, thereby easing global energy prices."
Beebe and Parsi emphasized that this deal would only be a first step, and they said the next step would be restarting negotiations to establish a nuclear weapons agreement similar to the one previously negotiated by the Obama administration that Trump tore up during his first term.
"The United States and Iran are trapped in a conflict in which each new escalation only deepens a shared, losing predicament," they wrote. "Neither can compel the other’s surrender. Sooner rather than later, both will confront the urgency of finding an off-ramp—one that does not hinge on the other’s humiliation."
Even if Trump takes this course of action, however, there is no guarantee it will succeed, in part because of how much he has already damaged US alliances across the world.
In an analysis published Thursday, Sarah Yerkes, senior fellow at the Carnegie International Endowment for Peace's Middle East Program, argued that even nations in the Middle East that stand to benefit from a weakened Iran are now thinking twice about their dependence on the US for their security needs, given that Trump's war has resulted in Iran launching retaliatory strikes throughout the region.
Yerkes also highlighted how Trump's handling of European allies is making it less likely that they will play a significant part in helping him end the conflict.
"Europe, which is not eager to enter what it sees as a war of choice, has refrained from proactively joining US and Israeli strikes," Yerkes explained. "One of the clearest examples of the transatlantic rift was over the initial reaction to closures in the Strait of Hormuz, the shipping channel for approximately 20% of the world’s seaborne oil and LNG traffic. Multiple European countries refused to cow to Trump’s demand that they send warships to help keep the strait open, inviting public ire from Trump."
The bottom line, warned Yerkes, is that "each day the war continues, without explicit goals or a clear exit strategy, opposition to the United States—from friends and foes, inside and outside—is also likely to grow, making America less safe and less secure."
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