If Trump's arrangement with Cohen was personal in nature, it might not have been necessary to report it to the Federal Election Commission, either as a contribution or as an expenditure.
According to Giuliani, the payment by Cohen to Daniels was not from campaign funds, but part of a "general arrangement that Michael would take care of things like this" and that Trump "didn't know about the specifics".
"Funneled it through the law firm, and then the president repaid it, " Giuliani said during an interview with Fox's Sean Hannity.
Giuliani said that he had spoken with Trump before and after his interview on Fox News and that the President and other lawyers on the team were aware of what he would say.
"Cohen didn't even ask".
"If this is true, then it looks like Cohen may have made an unreported loan to the campaign rather than a contribution", he said. Trump had previously denied having knowledge of the payment.
Asked about the president's tweets on Thursday, her lawyer Michael Avenatti told MSNBC the president had opened himself up to another possible lawsuit for defamation.
In a series of tweets on Thursday, Trump argued that he had acted properly.
He added, "Our case just got exponentially better in the last 24 hours".
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Yesterday, NBC broke an exclusive story about the president's long-time family physician, NY doctor Harold Bornstein . The White House has however, refuted the claims saying nothing out of the ordinary took place at Bornstein's offices.
Guiliani's revelation seemed aimed at reducing the president's legal exposure. "The crimes now have all been committed by the government", said Guliani, who joined the president's outside counsel team earlier this week.
Hannity replied: "Because they funneled it through the law firm?" The answer is in the very next thing that came out of Giuliani's mouth.
Last month, Trump told reporters on Air Force One that he had no knowledge about the payment Cohen made to Daniels.
"Sorry, I'm giving you a fact now that you don't know", Giuliani told Hannity.
At the time, the president claim he knew nothing about it. Daniels says that Cohen was acting on behalf of Trump to keep her quiet to avoid a scandal and that he had her sign an agreement not to talk about her relationship with Trump.
This week's revelations have, at a minimum, deepened a political controversy for Trump as explanations over the Daniels controversy continue to evolve.
Asked several times about the payment in recent months, White House spokeswoman Sarah Huckabee Sanders has repeatedly declined to comment, saying that Trump had addressed the issue "extensively".
Donald Trump repaid the $130,000 his lawyer gave to an adult-film star to buy her silence about an alleged affair with the president, Trump legal adviser Rudy Giuliani says. "And we have seen the absolute unethical conduct that's been committed against this president so far", Dhillon said. "It was mixed in with a couple of other things that have nothing to do with them or anybody else, just things that a lawyer would take care of for his client".
That's important, because if the payoff money was for the objective of influencing the campaign, then it would still have to be reported as a contribution to the campaign.