thomas perez Labor Secretary crop

Labor secretary nominee Thomas Perez cut a “secret deal behind closed doors” with leaders of a Minnesota city, persuading them to drop a contentious lawsuit in exchange for the Justice Department staying out of whistle blower cases brought against the city, according to a congressional Republican report.

The “quid pro quo,” according to the report, potentially cost taxpayers as much as $200 million.

The allegations are highly unusual, though are already being disputed by congressional Democrats. Perez is not a favorite of congressional Republicans, and the charges could impact his pending confirmation hearing — scheduled for this Thursday.

The report, obtained in advance by Fox News, claimed Perez in February 2012 “manipulated” federal law as assistant attorney general and “pushed the limits of justice to make this deal happen.”