NEWS / Economy

Treasury Department Cancels Booz Allen Contracts After Data Breach

Briefs Finance

Published Jan 26, 2026

A person carries a box labeled "Tax Records - Confidential" outside the Treasury Department; a contract termination notice is in the foreground, suggesting possible ties to a recent data breach.

Summary:

Treasury Secretary Scott Bessent canceled all contracts with Booz Allen Hamilton due to a data breach.

The stock price of Booz Allen Hamilton dropped by 8% following the announcement.

The Treasury had 31 contracts worth $4.8 million annually with Booz Allen Hamilton.

Cancellation of Contracts

On October 23, 2023, Treasury Secretary Scott Bessent announced the cancellation of all contracts with the consulting firm Booz Allen Hamilton.

This decision came in response to a significant data breach involving leaked tax records, including those of former President Donald Trump.

Impact on Booz Allen Hamilton

Following the Treasury Department's announcement, Booz Allen Hamilton's stock price fell by 8%.

The firm had 31 contracts with the Treasury Department, which accounted for $4.8 million in annual spending and a total of $21 million in obligations over the contract period.

Details of the Data Breach

The Treasury Department reported that between 2018 and 2020, Charles Edward Littlejohn, an employee of Booz Allen, stole and leaked confidential tax returns and return information.

This breach affected approximately 406,000 taxpayers, according to the IRS.

Plea and Sentencing

Littlejohn, 40, pleaded guilty in October 2023 to leaking tax return information.

He admitted to leaking Trump's tax records to The New York Times as well as information about wealthy individuals to ProPublica. In January 2024, he was sentenced to the maximum term of five years in federal prison for his actions.

Next Steps for Booz Allen Hamilton

As the situation develops, Booz Allen Hamilton has not publicly commented on the cancellation of its contracts with the Treasury Department or the implications of the data breach.

The cancellation of these contracts is seen as a significant measure by the Treasury to enhance trust in government operations.

Disclosure