The 2-1 decision by the U.S. Court of Appeals for the District of Columbia Circuit would help the lawmakers scrutinize Trump’s business interests and how he built his fortune.
The court rejected Trump’s bid to stop his longtime accounting firm Mazars LLP from handing over the documents.
The House Oversight Committee subpoenaed Mazars in April, Reuters reports.
“Contrary to the President’s arguments, the Committee possesses authority under both the House Rules and the Constitution to issue the subpoena, and Mazars must comply,” Judge David Tatel wrote.
Tatel added: “We conclude that in issuing the challenged subpoena, the Committee was engaged in a ‘legitimate legislative investigation.’”
Judge Neomi Rao, who was appointed by Trump to the D.C. appeals court, wrote a dissenting opinion.
Trump’s lawyers can appeal the decision to the U.S. Supreme Court before it goes into effect.
Will Consovoy, a personal lawyer for Trump, did not immediately respond to a request for comment.
U.S. Representative Elijah Cummings, the Democratic chairman of the House Oversight Committee, said the ruling was a “fundamental and resounding victory for Congressional oversight, our Constitutional system of checks and balances, and the rule of law.”
The subpoena is part of Democrats’ broader efforts to gather information about the Republican president’s finances.
The committee said it needed the records to determine if Trump — whose business interests have ranged from real estate and golf courses to a reality TV show — complied with laws requiring disclosure of his assets, and to assess whether those laws need to be changed.
While campaigning for the presidency in 2016, Trump broke with a decades-old convention of candidates releasing their tax returns publicly.
Trump sued the House panel in April, arguing that its subpoena exceeded limits on Congress’s investigative power.
Trump said the true motive for the subpoena was to expose private financial information “with the hope that it will turn up something that Democrats can use as a political tool against the President.”
A judge ruled against Trump in May, saying the documents might assist Congress in passing laws and performing other core functions.
The decision was the first time a federal court waded into the tussle about how far Congress can go in probing Trump and his business affairs and marked an important victory for House Democrats.
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