The president "breached his fiduciary duty" by allowing funds raised for US veterans to be used for the Iowa primary election in 2016, a court has ruled

Donald Trump has been ordered to pay $2 million (£1.6 million) for misusing funds from his charity to finance his 2016 presidential campaign.

A New York state judge said the payment should be made to eight non-profits that the US leader has no connection to and must be paid by Mr Trump himself.

The president “breached his fiduciary duty” by allowing funds raised for US veterans to be used for the Iowa primary election in 2016, she said in the settlement.

Attorney General of New York Letitia James said Mr Trump admitted to “personally misusing funds” at the Trump Foundation and accepted limits on his activities if he created a new charity.

Mr Trump’s children Donald Jr., Eric and Ivanka agreed to “mandatory training” on the duties of charity officials, it was reported.

The Trump Foundation agreed last December to dissolve.

“The court’s decision, together with the settlements we negotiated, are a major victory in our efforts to protect charitable assets and hold accountable those who would abuse charities for personal gain,” the attorney general said in a statement.

Ms James’s predecessor Barbara Underwood had filed suit after a 21-month probe that she said uncovered “extensive unlawful political coordination” between the Trump Foundation and Mr Trump’s campaign.

The lawsuit sought to recoup $2.82 million donated to the foundation in a 2016 Iowa fundraiser for military veterans, but which Ms Underwood said Trump allowed his campaign to control.

The judge said that because the money ultimately went to support veterans, Mr Trump should pay just $2 million, without interest, rather than the entire $2.82 million.

She rejected Ms James’ request for punitive damages, citing Trump’s agreement to take steps to avoid a recurrence.