US democracy at risk as corruption threats grow

Since the Trump administration took office, the U.S. went from one of the world’s leading champions of fighting corruption to what risks being the opposite, with far-reaching costs to the American people at home and globally. We wrote about the need to prioritize fighting corruption as a key pillar of defending American democracy in the Democracy Playbook 2025 and how, if unchecked, corruption can advance autocracy.

It is deeply concerning how quickly the Trump administration is undermining critical U.S. anti-corruption frameworks and leadership globally. These actions run counter to bipartisan efforts undertaken by previous administrations and the U.S. Congress to fight illicit finance and malign foreign influence to protect American interests from corrupt actors. These actions also stand in contrast to the recognition of the harms associated with illicit finance and other corruption issues, as noted in resources such as the Trump administration’s U.S. Intelligence Community’s 2025 Annual Threat Assessment.

Many of the administration’s recent actions, including the disbanding of anti-corruption bodies and the absence or limited enforcement of existing laws, could have short- and long-term negative impacts on the health, employment, safety, and security of many Americans. However, businesses, policymakers, civil society, media, and citizens have tools at their disposal to defend against what may be a devastating wave of corruption and other threats to democratic governance.

In this article, we highlight several key corruption threats; potential security, economic, and other impacts; and pathways for Americans and other stakeholders to act both individually and collectively to counter anti-corruption rollbacks. We recognize that there are other acute challenges, including the threat of state capture, abuse of power, and rise of American oligarchs, that deserve thorough attention. We will continue to examine these other growing areas of corruption risks, and pathways for addressing them, as we continue our series of analysis on threats to American democracy.

Weakening anti-corruption protections  

Since the inauguration, the Trump administration has moved quickly to undermine law enforcement bodies and personnel across departments and agencies that combat corruption, illicit finance, and malign foreign influence. A prime example is the administration’s effort to erode the Department of Justice’s (DOJ) Public Integrity Section (PIN), responsible for overseeing investigations and prosecutions of public officials accused of corruption. PIN, created following Watergate, was responsible for many high-profile cases.

Furthermore, Attorney General Pam Bondi’s directives disbanded the DOJ’s Kleptocracy Asset Recovery Initiative, which has investigated and prosecuted asset recovery cases. For example, the initiative successfully investigated and seized $1.7 billion in stolen assets from the Malaysian 1MDB fund, formerly Malaysia’s investment development fund. According to the DOJ, this was the “largest recovery to date under the Justice Department’s Kleptocracy Asset Recovery Initiative.” Bondi has also shuttered key DOJ offices, including the National Security Division’s Corporate Enforcement Unit, which investigated and prosecuted sanctions evasion and export control violations, and the Foreign Influence Task Force, which combats foreign influence operations. 

The administration has been scaling back staffing and has reportedly expressed interest in expanding a purge of career Federal Bureau of Investigation (FBI) agents that worked on January 6 insurrection-related investigations. The FBI plays a crucial role in protecting our nation’s security and in combating corruption through investigating government officials at local, state, and federal levels. Former FBI Director Christopher Wray underscored that investigating public corruption was the agency’s top priority given that it costs the U.S. government and taxpayers “billions of dollars every year.” 

We have seen other systematic actions by the Trump administration to destabilize internal government accountability and anti-corruption efforts, including the removal of over a dozen Inspectors General (IG) at various U.S. departments like the Veterans Administration and Department of Defense (DOD). IG investigations save billions in taxpayer money by deterring, detecting, and preventing fraudulent use of U.S. government funding in their respective agencies. They are also critical to protecting U.S. national security. For example, Senator Roger Wicker requested (R-Miss.) that the DOD IG investigate the recent Trump administration Signal chat leak that included exposure of potentially sensitive classified information.   

There are also growing concerns with respect to the administration’s rollbacks of key anti-corruption laws. An important example is pausing the enforcement of the Foreign Corrupt Practices Act (FCPA), which has long enjoyed bipartisan support and has been used for decades to prevent corporations from supplying bribes in foreign markets. Contrary to President Trump’s executive order indicating that the FCPA inhibits U.S. companies’ competitiveness, research consistently shows the FCPA is good for American business.  

In addition, the Trump administration’s Treasury Department is narrowing the scope of enforcement of the Corporate Transparency Act (CTA), legislation intended to curtail abuse of U.S. anonymous companies by money launderers, terrorists, autocrats, fentanyl traffickers, and others. According to experts, this arguably undermines Congress’ intent and further complicates how businesses comply with the law. The CTA was supported by a broad range of public and non-public actors across sectors and ideologies, from law enforcement associations, religious organizations, and businesses.

Leading anti-corruption experts have pointed out how U.S. businesses, security, economy, and citizens may be dangerously impacted by the CTA rollback. For example, Transparency International U.S. recently highlighted how Chinese drug traffickers used anonymous shell companies to peddle deadly fentanyl and other drugs across the U.S. Moreover, this decision, unless reversed, “will very likely lead to the US being found non-compliant with relevant global anti-money laundering and counter-terrorism finance standards set by the Financial Action Task Force (FATF).” 

In addition, Trump’s plan to sell a “gold card,” a U.S. visa with a path to citizenship priced at $5 million, entails significant risks of money laundering and tax evasion. The gold card would replace the already troubled EB-5 visa program, which has carried its own substantial corruption risks. Visa residence by investment schemes in countries such as Spain and Australia have run into similar challenges and have since been disbanded.   

The proposed “gold card” plan may also not be legal: While Trump has insisted the program would not require congressional approval, experts have underscored only Congress has the power to establish new visa categories and dismantle them. Recently, Commerce Secretary Howard Lutnick claimed he “sold 1,000” gold cards; however, there appears to be no evidence that this new U.S. visa is available or has replaced the EB-5 visa.  

Furthermore, the Trump administration has ended or paused billions of dollars in U.S. foreign assistance and activities aimed at strengthening government accountability, transparency, independent media, rule of law, and democracy. This aid, historically funded with strong bipartisan support in Congress, advances U.S. interests. The dismantling of U.S. assistance entities, such as USAID, harms efforts to combat corruption and undue influence from malign actors. 

A roadmap for action

The steps the Trump administration has taken in its first few weeks in office have quickly left the U.S. more vulnerable in the short- and long-term to corruption and national security threats. However, Americans are not without opportunities or tools to counter these fast-moving erosions of anti-corruption safeguards and institutions.  

Americans across the country, including citizens, labor unions, civil society, and other actors, are engaging in litigation to oppose alleged abuses of power and reduced government transparency and accountability in a variety of cases. In addition, civil society organizations (CSOs) are speaking out to educate the public on the far-reaching consequences of the Trump administration’s actions. Many of these groups are urging Congress to provide a check on executive branch actions or asking the Trump administration to enforce existing anti-corruption and anti-bribery laws. Many Americans have participated in protests, town halls, and other forums to express their concerns, including about abuse of power.

In Congress, we see some semblance of bipartisan cooperation in response to the Trump’s administration’s anti-corruption rollbacks. For example, Sen. Sheldon Whitehouse (D-R.I.) and Sen. Chuck Grassley (R-Ind.) recently voiced their concerns over the gutting of the bipartisan CTA. Sen. Grassley and Sen. Dick Durbin (D-Ill.) also weighed in on the removal of IGs. Despite some congressional steps to respond to the administration’s rollbacks, there are growing concerns that Congress may be unwilling to fulfill its constitutional responsibilities or respond sufficiently to executive branch overreach or anti-corruption backsliding. 

Beyond the legislative branch, the judicial branch’s ability to uphold the rule of law and maintain its independence is central to holding corrupt actors accountable, even as it has been increasingly threatened and potentially even ignored by the Trump administration. 

As the Trump administration pulls back from enforcing anti-corruption laws, state and local governments should stand ready to enforce criminal statutes, uphold the rule of law, and combat corruption. Authorities at the state and local level can also strengthen existing ethics initiatives; prioritize protecting public resources; and investigate waste, fraud, and abuse.  

Businesses and philanthropies also have an important role to play. Transparency and good governance are integral to leveling the playing field for businesses at home and abroad. By continuing to embrace anti-corruption best practices and complying with existing laws, the private sector can not only protect its reputation but play a role in countering the erosion of the rule of law. Philanthropy is critical to protecting democracy by supporting CSOs and independent media that expose and combat corruption and help hold public officials accountable. 

The media, particularly investigative journalists, plays a vital role in exposing corruption risks and impacts in the U.S. and globally. For example, recent reporting has raised important questions around potential conflicts of interest for key figures associated with the administration, including President Trump and Elon Musk, and how their business interests may intersect with anti-corruption rollbacks or possible abuse of power. 

This role of the media becomes even more critical given escalating concerns regarding the erosion of other checks and balances. Informed by the findings from investigations and reporting, civil society and citizens can demand greater transparency and accountability and protect public resources. Beyond traditional media, social media platforms offer citizens the chance to provide commentary, engage in advocacy, and crowdsource information.  

If threats to the rule of law and anti-corruption rollbacks take root during this administration, it will be more difficult for Americans to reverse course or prevent harmful outcomes.  

As we highlight in the Democracy Playbook 2025, it is ultimately up to all democracy actors to leverage their rights and take actionable steps to fight for transparency, accountability, and good governance that serves the interest of the people.