Sebastian Gorka, who is of Hungarian descent, was born and raised in the UK but is now an American, was pictured wearing the controversial medal at an inaugural ball for the US leader.
The badge was given to Mr Gorka’s father by the group Vitezi Rend – which translates as Order of Heroes, according to the blog LobeLog.
The group counted former Hungarian ruler Miklos Horthy, who worked with the Nazis during the Second World War, as one of its supporters.
America listed the organisation as being directed by Nazi Germany.
Sebastian Gorka dismissed accusations of anti-Semitism on Fox News
I wear that medal in remembrance of what my family went through and what it represents today to me as an American
Despite the history of the medal, Mr Gorka told Breitbart News he wore it in memory of his family after his father was tortured and imprisoned by Hungarian communists in the late 1940s.
He told the website: “In 1979 my father was awarded a decoration for his resistance to dictatorship.
“And although he passed away 14 years ago, I wear that medal in remembrance of what my family went through and what it represents today to me as an American.”
He said it reminded him of “what they suffered under the Nazis and under the communists”.
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“I’m a proud American now and I wear that medal now and again. Why? To remind myself where I came from, what my parents suffered under both the Nazis and communists and to help me in my work today,” he continued.
“Because as far as I’m concerned groups like the Islamic state, like Al-Qaida, they’re just another kind of totalitarian.
“They’re not communists, they’re not Nazis but they will enslave or kill you if you disagree with them. That’s my story.”
“I just find it amusing,” he said. “My father was nine-years-old when World War II started.
“He lived through the siege of Budapest, he was put in prison by the communist dictators and I’m the guy who’s some kind of extremist?”
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