President Donald Trump has withdrawn his $10 billion lawsuit against the Internal Revenue Service (IRS) and agreed to establish a $1.776 billion Anti-Weaponization Fund, according to court filings and multiple news reports. The settlement includes an IRS apology for disclosing Trump's personal financial records and waives ongoing audits involving him, his family, and their businesses.
Key Takeaways
President Donald Trump has withdrawn his $10 billion lawsuit against the IRS and agreed to establish a $1.776 billion Anti-Weaponization Fund, according to court filings and multiple news reports. The fund aims to compensate individuals who allege they were unfairly targeted by previous administrations.
- President Trump drops $10B IRS lawsuit as part of settlement agreement
- Justice Department creates $1.776B 'Anti-Weaponization Fund' for alleged victims of government targeting
- Fund could potentially benefit over 1,500 people involved in the January 6 Capitol riot
- Democratic lawmakers criticize the fund as a 'slush fund' for Trump's allies
- IRS permanently barred from pursuing claims against Trump or his company based on prior tax returns
The Internal Revenue Service is permanently barred from pursuing claims against President Trump or his company based on prior tax returns. A one-page document signed by Attorney General Todd Blanche states that the IRS and Treasury Department are 'FOREVER BARRED AND PRECLUDED' from prosecuting any claims arising out of tax returns filed before the settlement took effect.
The fund aims to compensate individuals who allege they were unfairly targeted by previous administrations. Over 1,500 people involved in the January 6 Capitol riot could be eligible for compensation from this fund. The settlement discussions also reportedly include a waiver of ongoing audits of Trump and his associates.
Democratic lawmakers have strongly criticized the proposed settlement. Sen. Ron Wyden (D-Ore.) called it 'among the most corrupt acts in American political history,' while Rep. Jamie Raskin (D-Md.) described the fund as a 'slush fund' for Trump's political allies on X. Legal experts have raised concerns about potential conflicts of interest and the possibility of a collusive settlement, given Trump's influence over the Justice Department.
U.S. District Court Judge Kathleen Williams has set a May 20 deadline for both sides to explain whether the case can proceed with Trump serving as both plaintiff and defendant. The judge has appointed a group of lawyers to advise on this matter. Meanwhile, Democratic lawmakers continue to voice their opposition to what they perceive as an unprecedented misuse of taxpayer funds.
The Justice Department announced the establishment of the Anti-Weaponization Fund to hear and redress claims of targeting by previous administrations. Acting Attorney General Todd Blanche stated that 'The machinery of government should never be weaponized against any American, and it is this department's intention to make right the wrongs that were previously done while ensuring this never happens again.' The fund will consist of a five-member commission, four appointed by the Attorney General, with $1.776 billion allocated to settle and pay cases.
According to Fox News, Trump and his sons are ineligible to receive compensation from the fund but will receive a formal apology. The fund is expected to end on Dec. 15, 2028, and any remaining money will return to the federal government. Additionally, Trump agreed to withdraw two additional claims for damages, one stemming from the FBI raid of Mar-a-Lago and the other related to the 'Russia-collusion hoax.'
Acting Attorney General Todd Blanche is expected to testify before a Senate Appropriations subcommittee about the Justice Department budget. Nearly 100 Democrats in the House of Representatives signed onto a legal brief urging a judge to block what they described as an unprecedented resolution that would unjustly enrich people close to the president with taxpayer dollars and open the door to meritless claims of political persecution.
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