How the White House is reacting to Giuliani's revelation

Rudy Giuliani appeared to contradict Trump's claim he was unaware of hush money payment.
5:52 | 05/03/18

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Transcript for How the White House is reacting to Giuliani's revelation
Those huge headlines with Rudy Giuliani the president's new personal but Torre. Making a stunning it admission overnight that the president in fact. Did you repay Michael Cohen his attorney for that 130000. Dollar payment he made last year. To the porn star stormy Daniels let's take a listen to where Rudy had to say. Sorry I'm giving you a fact now the you don't know it's not campaign money. No. Campaign finance violations. So they funneled into law firm. Funnel draw from than the president repaid. Oh I didn't know he did if there's no campaign finance law. You Rhode. Aren't even seeming to catch Sean Hannity off guard there from Fox News let's bring in our White House. Producer Alex now and who's at the White House this morning Alex. A lot of debate this morning about the legal implications for the president here this is a tough one the president has denied making these payments. But as you heard Rudy Giuliani talk about their they're hoping that this will go away in terms of potential. Campaign finance liability. Good morning DeVon your right breed seemed in his interview. To really understand the legal implications behind what he was saying. The White House has really refused to comment or all of all the denied that the president was involved in in in this payment at all of that he had no knowledge of it but. I think that with the way that Rudy kind of laid this out in the way that the president himself. Has tweeted on this book and this this morning really shows that the White House is is aware that this could. Potentially put them in murky legal waters. We spoke with some legal experts overnight. In basically if that money was paid. Two stormy Daniels for personal reasons and there is no crime and it really doesn't matter if the president lied it except for general White House credibility on this issue. But if the payment was made to help trump get elected and this was a campaign in kind contribution that's where this gets in a little bit murky and we saw. Rudy repeatedly this morning in an in another interview with FOX & Friends trying separate this from the campaign. But in the same time he was kind of caught off guard. And also. Went back to connecting to the campaign saying what if this the revelation of what story was alleging here had come out October 15. During a debate with Hillary Clinton how would that have affected. The potential for the election to the White House really trying to nip navigate hard line here. In trying to separate this entirely from the campaign but also having to finally admit that the president was personally involved. And respect reimbursing this now if you look back through Michael Collins original statement after the Soria first came out the Wall Street Journal he said that the that he was not personally reimbursed. By the Trump Organization or the trump campaign that did leave open some room for the president to say. That he personally made this reimbursement so that's not exactly contradicted with this this really surprising announcement from liberty here answer that with Steiner president. Apparently pain. Co Giuliani here calling rather some sort of a retainer payment maybe not knowing specifically what the money was for according to Giuliani. It all does come down to intent we also know that Robert Mueller the special counsel has seized documents. From Cohen's office about these payments the so much more to come out in terms of it just how legal fees were. But also want to ask you Alex about the question of credibility here a lot of statements about these payments as you pointed out. What is cirrus Sanders the White House spokeswoman saying this morning about her denials that the president had in fact paid any money. Two Michael called. So where ethics are Sanders did get in some hot water during today's briefing. I'm where she was pressed earlier by reporters after on the north lawn driveway was a march 7 briefing where she was asked did the president have any knowledge of this payment to stormy Daniels. And her exact quote was I've had conversations with the president on this and there was no knowledge quote of any payments. From the president now we obviously know that now to be false and the president on Air Force One when he was asked last month. About whether he had any knowledge of the payments he said that knowing that he's had in talked to my lawyer. Michael Cohen and that was before the again as you mentioned that FBI. Raid on his office where they let allegedly seized some information on on these payments. But. I think that now the White House when when we were asked today were are Jon Karl asked their Sanders. Did you know that the president lied on Air Force One. And she basically just said that they're going to stay out of this they're going to see out of any ongoing litigation but that didn't stop them from comics before so it's kind of hard. Argument to put on right now. And before we let you go Alex the president has been active on Twitter this morning in fact tweeting his response to his lawyers claims overnight. And also we're making his first comments publicly about the actual allegations themselves that he had an affair with miss Daniels. Yet a president has tweeted on Daniels before just calling this a con job but he has never outright denied that he ever had an affair. With storage and Daniels as she alleged in that and laid out. In that sixty minutes interview. So this morning the president in his tweet. Said the agreement was used to stop the false and extortionist accusations made by her about an affair and that is the first time. That we've heard the president outright deny that there ever was an affair. I'm the president has not denied though. The a separate allegations by care McDougal. That plea former Playboy money that is also making similar allegations about an affair at around the same time. All right Alex Mallon at the White House Alex thank you so much you can catch more on this story today at 2 o'clock we're here at ABC news with terra Sanders. Takes the podium in the White House briefing definitely worth watching today thanks to Alex.

This transcript has been automatically generated and may not be 100% accurate.

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