JUST IN: Lawmakers Authorize Public Money to Cover ACECO Demolition Company’s Court-Ordered Damages, Ending White House East Wing Payment Standoff with Donald Trump

In a swift and controversial move late Tuesday, lawmakers approved emergency funding to cover court-ordered damages owed to ACECO Demolition Company, effectively ending a weeks-long standoff between the White House and the construction firm over unpaid East Wing project costs.

The dispute began after ACECO sued the Trump administration for failing to pay demolition contractors following the halted East Wing renovation plan.

A federal court later ruled that the government must compensate the company, but the White House resisted authorizing the payment, calling the ruling “politically motivated overreach.”

Congress’s authorization now compels the federal government to use public funds to settle the outstanding amount, sidestepping the administration’s objections and ensuring ACECO is paid immediately.

Lawmakers across both parties cited the urgent need to avoid further legal penalties and additional taxpayer liabilities.

Critics, however—including several Trump allies—argued that the legislative move undermined executive authority and rewarded what they called “reckless contracting decisions.”

With the payment dispute now resolved, attention turns to the broader fallout from the abandoned East Wing project, including questions over cost overruns, halted construction plans, and the future of the proposed renovations.