Facts of the Case
The U.S. House of Representatives Committee on Oversight and Reform issued a subpoena to Mazars USA, the accounting firm for Donald Trump (in his capacity as a private citizen) and several of his businesses, demanding private financial records belonging to Trump. According to the Committee, the requested documents would inform its investigation into whether Congress should amend or supplement its ethics-in-government laws. Trump argued that the information serves no legitimate legislative purpose and sued to prevent Mazars from complying with the subpoena.
The district court granted summary judgment for the Committee, and the U.S. Court of Appeals for the D.C. Circuit affirmed, finding the Committee possesses the authority under both the House Rules and the Constitution.
In the consolidated case, Trump v. Deutsche Bank AG, No. 19-760, two committees of the U.S. House of Representatives�the Committee on Financial Services and the Intelligence Committee�issued a subpoena to the creditors of President Trump and several of his businesses. The district court denied Trump�s motion for a preliminary injunction to prevent compliance with the subpoenas, and the U.S. Court of Appeals for the Second Circuit affirmed in substantial part and remanded in part.
Question
Does the Constitution prohibit subpoenas issued to Donald Trump�s accounting firm requiring it to provide non-privileged financial records relating to Trump (as a private citizen) and some of his businesses?
Conclusion
The courts below did not take adequate account of the significant separation of powers concerns implicated by congressional subpoenas for the President’s information. Chief Justice John Roberts authored the 7-2 majority opinion of the Court.
The Court first acknowledged that this dispute between Congress and the Executive is the first of its kind to reach the Court and that the Court does not take lightly its responsibility to resolve the issue in a manner that ensures “it does not needlessly disturb ‘the compromises and working arrangements’ reached by those branches. Each house of Congress has “indispensable” power “to secure needed information” in order to legislate, including the power to issue a congressional subpoena, provided that the subpoena is “related to, and in furtherance of, a legitimate task of the Congress.” However, the issuance of a congressional subpoena upon the sitting President raises important separation-of-powers concerns. The standard advocated by the President—a “demonstrated, specific need”—is too stringent. At the same time, the standard advocated by the House—a “valid legislative purpose”—does not adequately safeguard the President from an overzealous and perhaps politically motivated Congress.
Rather than adopt either party’s approach, the Court proposed a balancing test that considers four factors. First, courts should carefully assess whether the asserted legislative purpose requires involving the President and his papers, or whether the information is available elsewhere. Second, courts should consider whether the subpoena is no broader than reasonably necessary in scope so as to still serve Congress’s legislative purpose. Third, courts should evaluate the evidence Congress has offered to “establish that a subpoena advances a valid legislative purpose”—the more “detailed and substantial,” the better. Finally, courts should assess what burdens a subpoena imposes on the President.
Justice Clarence Thomas authored a dissenting opinion, in which he argued that Congress can never issue a legislative subpoena for private, unofficial documents.
Justice Samuel Alito authored a dissenting opinion, in which he argued that even accepting the balancing test adopted by the majority, the House subpoenas should fail without a greater showing from the House as to each of the four considerations outlined by the majority.