• The US Treasury cancels all contracts with Booz Allen Hamilton after a major tax leak.
• Former contractor Charles Edward Littlejohn was sentenced to five years for leaking confidential data.
• The leak affected around 406,000 individuals, including prominent figures like Donald Trump.

The US Treasury Department announced the termination of all contracts with consulting firm Booz Allen Hamilton, following the conviction of a former contractor for leaking sensitive tax data of thousands of Americans, including former President Donald Trump. This decision is part of the Trump administration's efforts to enhance protections around sensitive government information, according to Indiatimes and CBS News.

Former IRS contractor Charles Edward Littlejohn was sentenced to five years in prison for his role in the leaks, which prosecutors have called "unparalleled in the IRS's history." He had shared tax data from 2018 to 2020 with notable media outlets including The New York Times and ProPublica, reportedly utilizing his access to administrative roles to misuse sensitive taxpayer information, according to NPR and CBS News.

The Treasury Secretary Scott Bessent emphasized that the cancellation of these contracts is crucial for restoring public trust, stating, "Booz Allen failed to implement adequate safeguards to protect sensitive data." The consultancy firm had 31 contracts amounting to $21 million total, which will now be terminated due to these breaches, according to NPR and Indiatimes.