Contract loss: Alina Habba loses $50 million deal amid scrutiny that enraged Trump

Contract termination and payout

The Times reported that she will retain $6.5 million already paid to her, along with an $8 million signing bonus. The contract’s end therefore does not leave her without compensation.

Pardon and contract timeline

The Herrera family hired Habba as part of the contract while she was still serving as a U.S. attorney in the Republican administration. Her first day at the family company was Jan. 1, a few months after it was established.

Weeks later, Trump pardoned Julio Herrera Velutini, the family patriarch. The article says the president has not publicly explained or defended his reasons for granting the pardon.

Velutini’s case and pardon

Velutini faced felony bribery and other charges in the United States. His defense attorney helped negotiate a plea deal in August 2025, under which Velutini pleaded guilty to a misdemeanor campaign finance violation.

The article says Velutini’s daughter had made generous contributions to Trump’s super PAC before the pardon. Velutini had hoped to receive a pardon despite the plea deal, which did not erase his record.

Trump’s public response

After news of the contract reached voters, Trump criticized the arrangement. He called Habba’s contract “totally obnoxious and outrageous,” according to the article. The report intensified scrutiny of Trump’s pardons, including questions about efforts to obtain them through lucrative lobbying and allegations that pardons could be for sale. The article also notes a commentator’s argument that Trump’s objection may have been about not receiving a share of the money.