NEW YORK CITY -- President Donald Trump's charitable foundation has reached a deal to dissolve amid a legal battle with New York's attorney general.
Attorney General Barbara Underwood and the foundation filed a joint stipulation with the court Tuesday laying out a process for shutting down the charity and distributing its remaining assets to other nonprofit groups.
New York filed a lawsuit last spring accusing the foundation of operating like an extension of Trump's businesses and political campaign. That suit will continue.
Lawyers for the foundation say any infractions were minor. They say they have been trying to shut down the foundation voluntarily for months.
A judge must still sign off on the agreement.
Underwood is a Democrat and is seeking millions of dollars in penalties. She wants Trump and his eldest children barred from running other charities.
Underwood released the following statement:
"Our petition detailed a shocking pattern of illegality involving the Trump Foundation, including unlawful coordination with the Trump presidential campaign, repeated and willful self-dealing, and much more. This amounted to the Trump Foundation functioning as little more than a checkbook to serve Mr. Trump's business and political interests. Today's stipulation accomplishes a key piece of the relief sought in our lawsuit earlier this year. Under the terms, the Trump Foundation can only dissolve under judicial supervision - and it can only distribute its remaining charitable assets to reputable organizations approved by my office. This is an important victory for the rule of law, making clear that there is one set of rules for everyone. We;ll continue to move our suit forward to ensure that the Trump Foundation and its directors are held to account for their clear and repeated violations of state and federal law."
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Trump Foundation to dissolve, donate assets amid New York lawsuit