Trump's $400 Million Boeing Jet Gift From Qatar Sparks Outcry From Larry Summers, Peter Schiff: 'Banana-Republic-Level Corruption'

Former Treasury Secretary Larry Summers and economist Peter Schiff have sharply criticized a reported $400 million gift of a Boeing Co. (NYSE:BA) 747-8 jumbo jet from Qatar’s royal family to President Donald Trump.

What Happened: Summers questioned on X why universities face scrutiny for accepting Qatari research gifts while the president can receive such a lavish present. “This feels like banana-republic-level corruption. I hope the IRS [Internal Revenue Service] remembers that payments for services rendered represent taxable income,” Summers wrote Sunday.

Summers was referring to a federal investigation into whether U.S. universities—including Georgetown, Texas A&M, Cornell, and Rutgers—properly disclosed over $250,000 in gifts or contracts from foreign sources like China, Qatar, Russia, and Saudi Arabia. The probe was reported on by The New York Times

Schiff similarly criticized the arrangement, noting that “stock brokers can’t accept gifts worth over $100” while comparing the situation to monarchical privilege.

The Boeing-manufactured aircraft, described as a “flying palace,” will reportedly serve as Air Force One until Trump’s term ends, after which ownership will transfer to the Trump Presidential Library Foundation by January 2029.

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Why It Matters: White House Press Secretary Karoline Leavitt defended the arrangement, stating the gift “complies with all applicable laws” and emphasizing the administration’s commitment to “full transparency.” Qatar’s media attaché confirmed the transfer is under consideration by defense authorities in both countries.

Trump defended the transaction on Truth Social, calling it “a very public and transparent transaction” that provides a temporary replacement for the aging 40-year-old Air Force One fleet while criticizing Democrats who “insist we pay, TOP DOLLAR, for the plane.”

The controversy emerges amid Boeing’s ongoing delays in delivering new Air Force One aircraft. Originally scheduled for 2024 delivery, the replacement jets aren’t expected until 2027.

Photo courtesy: Rawpixel.com / Shutterstock.com

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.