NEW YORK — President Donald Trump's charitable foundation has reached a deal to dissolve amid a legal battle with New York's attorney general.
New York 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 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.
Trump's foundation in 2013 gave $25,000 to And Justice For All, the political committee for Florida Attorney General Pam Bondi. The donation later became problematic for both Republicans.
In 2016, Trump paid a $2,500 penalty to the Internal Revenue Service and refunded his foundation $25,000 from his personal wealth because the contribution violated tax laws, the Washington Post reported at the time.
The foundation, called the Donald J. Trump Foundation, is a tax-exempt nonprofit and thus barred from contributing to political campaigns, candidates or causes.
The contribution came shortly after New York launched an investigation into Trump University, the controversial Trump real estate training program with significant Florida ties. New York Attorney General Eric Schneiderman deemed Trump University and its affiliates "sham for-profit colleges" that ripped off 5,000 consumers.
Bondi's office declined to launch a similar investigation, leading political opponents to later question whether Trump's contribution affected the decision.
Both Bondi and the White House denied any correlation.
"The ethics commission found — everyone found — that nothing was done wrong there," Bondi said in July.
The Associated Press contributed to this report.