Lisa Lerer, Reid J. Epstein and Theodore Schleifer at NYT:
The demoralization and fear gripping blue America in the early weeks of President Trump’s administration have left liberal groups and their allies struggling for cash, hurting their ability to effectively combat the right-wing transformation of the federal government.
The small-dollar online spigot that powered opposition to the first Trump administration has slowed to a trickle as shaken liberal voters withhold their donations.
Charitable foundations that have long supported causes like voting rights, L.G.B.T.Q. equality and immigrants’ rights are pulling back, devoting time to prepare for expected investigations from the Republican-led Congress.
And some of the country’s biggest liberal donors have paused giving, frustrated with what they see as Democrats’ lack of vision and worried about retaliation from a vengeful president. Some Democrats say a few of their reliable donors are now openly supporting Mr. Trump, or at least looking to curry favor with him.
Fund-raising slowdowns are common after a presidential defeat and before marquee midterm races fully begin. But interviews with more than 50 donors, strategists and leaders of activist organizations show that many Democrats believe this year is different.
While Mr. Trump has not taken action against any liberal groups or lawmakers, Democrats worry his frequent threats of retribution during the campaign have led to a chilling effect on the charitable foundations and nonprofit advocacy groups that have long been pillars of the country’s civil society.
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Some donors are hiring additional legal counsel to address worries about tax audits, congressional investigations and lawsuits. Others are moving assets overseas, or at least their foundations to Democratic-controlled states.
Donors increasingly want to stay anonymous, which could slow the flow of cash to Democratic super PACs because they must eventually disclose their donors.
Donors have reason to be afraid.
Alan Rappeport, Andrew Duehren and Maggie Haberman at NYT:
The Internal Revenue Service is preparing to give a team member working with Elon Musk’s so-called Department of Government Efficiency access to sensitive taxpayer data, people familiar with the matter said.
The systems at the I.R.S. contain the private financial data tied to millions of Americans, including their tax returns, Social Security numbers, addresses, banking details and employment information.
“Waste, fraud and abuse have been deeply entrenched in our broken system for far too long,” Harrison Fields, a White House spokesman, said. “It takes direct access to the system to identify and fix it.”
