Earlier this year, the companies had discussed plans for the Trump Organization to manage a hotel in Long Branch. They also jointly managed a hotel in Livingston for at least part of last year. Both deals are now off the table, sources say.
The news comes after ethics watchdogs called out Jared Kushner, the son-in-law of President Donald Trump, for maintaining stakes in the company while simultaneously working in the White House. Charlie Kushner, Jared's father and the founder of Kushner Companies, recently called those watchdogs "jerks."
The watchdogs raised questions about the partnership between the Trump Organization and the Kushner Companies in New Jersey and whether it had influenced Kushner's role in the White House.
Jared Kushner serves as a senior adviser in the administration. He resigned as CEO of his family's company in January 2017, but financial disclosure reports show he still owns part of Kushner Companies.
In an opinion piece published in March, Fred Wertheimer, the founder and president of Democracy 21, a nonprofit organization that seeks to promote government accountability, said Jared Kushner violated ethics laws when he took loans for his family real estate business after he held White House meetings with representatives of the lenders.