U.S. District Judge Kathleen Williams voided President Donald Trump's settlement with the IRS, ruling that it was unlawful self-dealing under the U.S. Constitution. The agreement had created a $1.8 billion fund and granted sweeping tax protections to Trump and his companies.
Key Takeaways
A U.S. district judge voided President Trump's settlement with the IRS, calling it unlawful self-dealing. The $1.8 billion fund created by the agreement was deemed improper under the Constitution.
- Judge Kathleen Williams ruled the lawsuit lacked true adversarial parties
- Settlement included immunity and taxpayer-funded compensation for undefined grievances
- Judge referred Trump's lawyer and DOJ officials to bar authorities for ethics review
- Administration abandoned the 'Anti-Weaponization Fund' after bipartisan pushback
Source Claims Check
1 Difference Found| Claim | Status | Reason | |
|---|---|---|---|
| Purpose Of Lawsuit | 1 Difference | Majority says lawsuit was self-dealing; CNBC reports Trump's claim of improper leaks | ▼ |
| Settlement Amount | Broad Agreement | $1.8 billion fund created by settlement | |
| Judge's Ruling On Adversarial Parties | Broad Agreement | Judge ruled Trump and DOJ were not truly adverse parties | |
| Fund Purpose | Broad Agreement | Fund to compensate victims of government 'weaponization' and 'lawfare' |
The judge found that Trump and the Department of Justice were not truly adverse parties in the litigation, as required for civil lawsuits. She characterized the suit as an attempt to use the court system to legitimize an agreement conferring immunity and earmarking billions from taxpayers for undefined grievances.
Williams referred a Trump lawyer involved in the case, Alejandro Brito, and senior Justice Department officials who approved the settlement to state bar authorities. She suggested that acting Attorney General Todd Blanche may have acted on behalf of both Trump and the DOJ during proceedings.
The ruling comes after the administration abandoned the so-called 'Anti-Weaponization Fund' amid bipartisan pushback from lawmakers. The judge emphasized that courts must be used only for their constitutional purposes, not to legitimize improper agreements.
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