"A tough NY real estate market, particularly for retail locations; a costly lawsuit and an expensive presidential campaign", all took a toll on Trump's finances in the past year, Forbes reported.
Trump's business empire continued to run despite his ascendancy to the White House after he beat Hillary Clinton in the 2016 elections. The year before, he was ranked 156th and Forbes said he was worth $3.7 billion.
Trump likewise endured a money related shot because of his 2016 presidential battle, burning through $66 million, and $25 million to settle his Trump University claim, Forbes announced. That sharply reduced the value of Trump Tower and other properties he owns or has stakes in. Forbes gives the Chevy Chase resident an estimated net worth of $3.5 billion.
However, the new Forbes rankings also delivered some good news for Trump.
Forbes reports that Trump's most valuable assets remain New York City real estate holdings at $1.6 billion, followed by his golf course and resort properties valued at $570 million, and then non-New York real estate at $500 million.
Unity deal offers hope for Palestinians
It has fought three wars with Israel since 2008 and the blockaded Gaza Strip has seen deteriorating humanitarian conditions. Palestinian President Mahmoud Abbas had previously insisted no unity government could be established before Hamas disarmed.
Bill Gates topped the Forbes 400 for the 24th consecutive year, with a net worth of $89 billion.
This is the 36th year of the flagship Forbes 400.
In all, the fortunes of 51 members from last year's Forbes ranking dropped in value, while 289 became even richer.
Donald Trump has dropped 92 places in the Forbes list of wealthiest Americans, with the magazine putting his wealth at $3.1bn, down from $3.7bn past year. Warren Buffet, Mark Zuckerberg, Larry Ellison, Michael Bloomberg, Charles Koch, David Koch, Larry Page and Sergey Brin round out the top ten. One fellow billionaire Trump tapped for his presidential cabinet was among the less fortunate.