He said the President “didn’t know about the specifics of it, as far as I know, but he did know about the general arrangement that Michael would take care of things like this”.
Mr Giuliani later said reimbursements came out of Trump’s personal family account.”
US federal law restricts how much individuals and organisations can contribute to campaign financing.
Legal expert Lawrence Noble said: “If the purpose of this was to stop [Daniels] from hurting the campaign, then what you have is Cohen made a loan to the campaign.”
The $130,000 (£95,000) would exceed the amount an individual can donate to a presidential campaign. Any repayment by the Trump campaign would violate the law.
Ms Daniels’ lawyer Michael Avenatti said: “Mr Trump evidently has participated in a felony and there must be serious consequences for his conduct and his lies and deception to the American people.”