DNC lawsuit accuses Trump administration of diverting $20M in federal funds for 'propaganda' ads

The Democratic National Committee is suing the Trump administration, alleging it illegally diverted $20 million in federal funds to produce and broadcast partisan political advertisements.

The ad campaign was designed to boost Republican prospects in the upcoming 2026 midterm elections and shore up President Donald Trump’s approval ratings, a move the DNC argues constitutes unlawful "publicity or propaganda," the lawsuit states.

The lawsuit claims President Donald Trump personally directed the campaign, violating the longstanding statutory ban on using federal appropriations for "publicity or propaganda purposes."

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"President Trump’s political propaganda ads are an attempt to resuscitate his historically low approval ratings and avoid widespread Republican defeats in the 2026 midterm election," the lawsuit states. "The President has nationalized the midterm election, made himself the center of a two-day ‘midterm convention,’ and repeatedly directed voters to ‘pretend that I am on the ballot.’"

The Office of Management and Budget (OMB) transferred the funds from money authorized under the One Big Beautiful Bill Act, according to court filings.

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The OMB approved reallocating the funds into a U.S. Customs and Border Protection line item designated for "Commemorative Events," according to the lawsuit. The lawsuit also notes that congressional committee reports explicitly restricted that line item to line-of-duty death memorials, agency anniversaries and commendation ceremonies.

"The Radical Left is upset with the fact that I am taking Ads, which I consider to be a positive promotion for our Great U.S.A., and paying for them with U.S.A. money," Trump wrote on Truth Social earlier this week. "This is a rather standard thing to do but, rather than doing that, although nothing will make them happy, I have decided to do the Patriotic Ads, among others, and pay for them myself, and with money I raised for MAGA, Inc. MAKE AMERICA GREAT AGAIN!"

The lawsuit highlights mounting pressure on Republicans, noting that polling numbers have dropped in traditional battlegrounds as well as in typically conservative states, which leaves Democrats "poised to take control of Congress, governor’s mansions, and state legislatures around the country."

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Among the ads flagged in the filing is one featuring President Trump touting the capture of former Venezuelan President Nicolás Maduro. In another spot, Trump directly addresses the audience: "With you at my side, we will demolish the deep state. We will expel the warmongers from our government. We will drive out the globalists; we will cast out the communists, Marxists and fascists."

A third ad explicitly asks viewers to "pretend I'm on the ballot" to drive turnout. The lawsuit also targets ads featuring high-ranking administration officials praising Trump, including War Secretary Pete Hegseth and Secretary of State Marco Rubio.

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"Donald Trump is misusing millions of taxpayer dollars to fund pure propaganda ads in a last-ditch attempt to save Republicans in November, so we’re suing him," DNC Chair Ken Martin said in a statement. "As gas and grocery costs rise and his approval numbers continue to crater, this president has stooped to taking money from a fund intended for memorials for Americans killed in the line of duty to promote his failed policies.

"Americans deserve better than to have their hard-earned tax dollars used for Trump’s illegal schemes."

"Presidential Public service announcements are nothing new. Administrations of both parties have used public service announcements to explain policy and make the case for the nation’s direction," a White House spokesperson told Fox News Digital, citing numerous examples.

"The G.W. Bush Administration ran a national television campaign explaining the Medicare Prescription Drug, Improvement, and Modernization Act to seniors,"  they noted. "It also bought Super Bowl airtime for anti-drug and anti-terrorism public service announcements."

Furthermore, "the Obama Administration used national advertising to promote Obamacare subsidies and open enrollment, and a digital campaign to sell its Waters of the United States rule," they said, adding that "the Biden Administration poured hundreds of millions of dollars into "We Can Do This" — television, digital, radio, and print spots — to drive a nationwide public health message."

They also cited historical examples, naming the Wilson administration's Committee on Public Information and the Franklin D. Roosevelt administration's Office of War Information.

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The lawsuit asks the court to declare that the Trump administration and affected federal agencies unlawfully produced and aired the advertisements using congressionally appropriated funds and seeks an immediate injunction to block further use of taxpayer dollars for the campaign.

Fox News Digital has reached out to the White House for comment.