Once the judge approves the deal to dissolve the charity, the two sides will have 30 days to provide her with a list of nonprofit organizations that should get the remaining funds. A lawyer for the foundation characterized her announcement as making a "misleading statement", the New York Times reported.
He added that over the past decade, the foundation had distributed about $19 million, including $8.25 million of Trump's personal money, to over 700 charitable organizations.
Alan Futerfas, an attorney for the Trump Foundation, issued a statement criticizing Underwood for "politicizing" the agreement. But a NY judge ruled in November that it should go forward because there is no basis for finding "animus and bias were the sole motivating factors" for the litigation.
Citing alleged campaign contributions and legal settlements, Underwood has accused the Trumps of illegally using money accumulated from charitable donations to the foundation to promote Trump's political and financial goals.
The agreement was reached after a NY judge last month rejected arguments from the foundation's lawyers that the lawsuit was politically motivated and should be thrown out.
Trump Foundation charity will dissolve, disperse assets over lawsuit
President Donald Trump's titular foundation is dissolving amid legal action.
Trump now values the three items - for which he spent $42,000 in charity money - at a combined $975, according to a recent IRS filing. The organization's remaining money will reportedly be given to other charities under judicial supervision.
Underwood's office sued the Trump Foundation in June, charging it with "improper and extensive political activity, repeated and willful self-dealing transactions, and failure to follow basic fiduciary obligations or to implement even elementary corporate formalities required by law".
Underwood is a Democrat and is seeking millions of dollars in penalties. Other challenged expenses included $100,000 to settle a dispute involving Trump's Mar-a-Lago resort, and $10,000 for a portrait of Trump that was later hung at one of his golf clubs.
President Trump likely stopped fighting this lawsuit from the New York Attorney General because he would have to bring more information about it to light.
The New York Attorney General's office forced the lawsuit against the foundation, claiming Trump and his children violated campaign finance laws and abused its tax-exempt status. It must now dismantle itself under a judge's watchful eye, with review and approval from the New York Attorney General's office.