On Tuesday, February 27th, news broke that Michael Cohen, President Trump’s personal attorney, had admitted to paying $130,000 in hush money to Stormy Daniels, the adult film star who allegedly had an affair with Trump in 2006. This revelation came in the form of a letter from Cohen’s attorney to the Federal Election Commission, in which he explained that the payment was made in order to avoid negative publicity for the Trump campaign.

The letter, which was submitted to the FEC in response to a complaint by Common Cause, a nonpartisan ethics watchdog group, is significant for a number of reasons. First and foremost, it marks the first time that Cohen has acknowledged that he made the payment to Daniels, who goes by her real name, Stephanie Clifford. It also confirms that Cohen used his own personal funds to make the payment, rather than using campaign money or money from the Trump Organization.

According to the letter, Cohen made the payment to Clifford in October 2016, shortly before the presidential election. The letter states that “Mr. Cohen made the payment to Mr. Clifford in his personal capacity, using his own personal funds, without reimbursement from the Organization or the Campaign, and neither the Organization nor the Campaign was a party to the transaction with Ms. Clifford, and neither reimbursed me for the payment, either directly or indirectly.”

This admission is significant because it contradicts earlier statements by both Cohen and the Trump campaign. In January, the Wall Street Journal reported that Cohen had arranged the payment to Clifford, but Cohen denied the report, telling the newspaper that “These rumors have circulated time and again since 2011. President Trump once again vehemently denies any such occurrence as has Ms. Daniels.”

Similarly, the Trump campaign has also denied any knowledge of the payment. In a statement to the New York Times in January, a spokesperson for the campaign said that “These are old, recycled reports, which were published and strongly denied prior to the election.”

The fact that Cohen used his own personal funds to make the payment is significant because it could potentially lead to legal jeopardy for him, depending on how the payment is classified. If it is determined that the payment was made to influence the election, it could be considered an illegal campaign contribution, which would mean that Cohen could face legal consequences for not disclosing it properly.

The letter from Cohen’s attorney also raises questions about why the payment was made in the first place. According to the letter, “In sum, the expenses were incurred by Mr. Cohen on his own accord, and no one within the Trump Organization or the Campaign was aware of the expenditure, and neither reimbursed him for the payment nor was reimbursed.”

The letter goes on to explain that the payment was made “to provide funds to Ms. Clifford in order to ensure her silence about this alleged affair. The payment to Ms. Clifford was lawful, and was not a campaign contribution or a campaign expenditure by anyone.”

However, the fact that the payment was made just weeks before the election raises questions about its timing and motivation. If the payment was made to sway the election in Trump’s favor, it could be considered a campaign contribution, regardless of whether or not it was made by Cohen personally.

In addition to the legal implications of the payment, the news has also sparked a political firestorm. Democrats have seized on the news as evidence of the president’s lack of honesty and integrity, while Republicans have largely remained silent.

President Trump himself, however, has been vocal in his response to the news. On Wednesday morning, he tweeted a statement in which he denied that he had any knowledge of the payment, calling it “a private transaction” and saying that “there was no campaign finance violation and no collusion.”

Later in the day, White House Press Secretary Sarah Huckabee Sanders echoed the president’s statement, telling reporters that “The President maintains that he’s denied the allegations that have been made against him, and that’s certainly what his legal team has stated as well.”

Sanders also dismissed questions about the timing of the payment and whether or not it was made to influence the election, saying that “The exchange was documented, it was aboveboard, and I think that any attempt to make this into anything other than that is, frankly, ridiculous and a distraction from the very important issues that we’re facing today.”

In addition to denying any knowledge of the payment, Trump has also denied having an affair with Clifford. However, a 2011 interview with In Touch magazine has come to light in which Clifford detailed her alleged affair with Trump, including details about their sexual encounters and interactions with his family.

It remains to be seen what, if any, legal consequences could come from Cohen’s admission of the payment. However, the letter has certainly raised questions about the handling of hush money payments and the role of personal attorneys in protecting their clients’ reputations.

It has also shone a spotlight on the president’s personal life and his attitude towards women. In addition to Clifford, at least 19 women have accused Trump of sexual misconduct or assault, which has led to questions about his fitness for office and his ability to represent all Americans fairly.

Overall, the letter from Cohen’s attorney is a significant development in the ongoing saga of Trump’s personal life and his presidency. While it remains to be seen what the long-term consequences will be, it is clear that this revelation has only added to the already tumultuous political landscape in Washington.