The Treasury Department said it canceled $21 million of contracts with Booz Allen Hamilton, alleging the consulting firm failed to protect taxpayer data to which it had access, including President Donald Trump's tax returns.
"Canceling these contracts is an essential step to increasing Americans' trust in government," Treasury Secretary Scott Bessent said Monday in a statement. "Booz Allen failed to implement adequate safeguards to protect sensitive data, including the confidential taxpayer information it had access to through its contracts with the Internal Revenue Service."
Shares of Booz Allen Hamilton fell as much as 12.6% on the news. While the company's work with the U.S. government comprises nearly all its revenue, the Treasury contracts are only a small portion of the total.
The Treasury has 31 separate contracts with the company, representing $4.8 million in annual spending, the department said. It cited the case of Charles Littlejohn, a former Booz Allen employee who
In a statement, Booz Allen Hamilton said it looks forward to discussing the matter with the Treasury and distanced itself from Littlejohn. The company said it supported the investigation and its assistance led to his prosecution.
"When Littlejohn's criminal conduct occurred over five years ago, it was on government systems, not Booz Allen systems," the company said. "Booz Allen stores no taxpayer data on its systems and has no ability to monitor activity on government networks."
