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Donald Trump has reached a $1.8 billion deal with the IRS to dispense taxpayer funds to those subjected to ‘lawfare’ as part of a settlement agreement in his case against the government.
The President, his sons Don Jr and Eric, and the Trump Organization filed suit against the Treasury and IRS in the Southern District of Florida federal court after the leak of their tax returns.
They agreed to drop their suit, as well as two claims, including for damages resulting from the raid on Mar-a-Lago in 2022 and the Russian election interference probe.
While Trump is barred from directly receiving payments from the fund, entities associated with him are not explicitly prohibited from filing additional ones.
The settlement sparked outrage from Democrats, including Ron Wyden of the Senate Finance Committee, who said it represented a brazen new level of corruption.
‘Even by his standards, the move he’s trying to get away with now is a stunning act of corruption,’ said Wyden.
‘What Trump wants is a $1.7billion slush fund for right-wing political violence and subversion, and if he follows through, it will be the most brazen theft and abuse of taxpayer dollars by any president in American history.’
The $1.776 billion fund will have the power to issue formal apologies and monetary relief owed to claimants, including Trump’s political allies and the 1,600 January 6 defendants. The fund will consist of a commission of five members appointed by the Attorney General, with Trump given the power to remove any member.
The President sued the IRS in January over the 2019 leak of his tax returns to the press
Acting attorney general Todd Blanche said of the case: ‘The machinery of government should never be weaponized against any American’
‘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,’ said Acting Attorney General Todd Blanche.
‘As part of this settlement, we are setting up a lawful process for victims of lawfare and weaponization to be heard and seek redress.’
The extraordinary arrangement comes despite the misgivings of the judge in the case, Kathleen Williams, who was investigating a potential conflict of interest as Trump sued his own government.
Trump himself conceded last October that ‘it’s awfully strange to make a decision where I’m paying myself.’
The President has previously vowed to donate any proceeds he receives from the lawsuit to charity.
In January, Trump sued the IRS over the 2019 leak of his tax returns to the press. The President and his sons argued that the tax agency failed to protect their privacy.
At the start of his second term, Trump issued a blanket pardon for all defendants charged in connection with the January 6 riot.
Many of those pardoned have since begun seeking payouts from the federal government, claiming they were wrongfully targeted by the Biden DOJ.
The President has previously vowed to donate any proceeds he receives from the lawsuit to charity
Trump has previously signaled openness to compensating the rioters, stating that ‘a lot of the people that are in government now talk about it.’
Last month, Judge Williams appeared skeptical that Trump and the Treasury Department were ‘sufficiently adverse’ for the case to proceed.
‘Moreover, although President Trump avers that he is bringing this lawsuit in his personal capacity, he is the sitting president and his named adversaries are entities whose decisions are subject to his direction,’ Williams wrote.
‘Indeed, President Trump’s own remarks about this matter acknowledge the unique dynamic of this litigation.’
However, the judge has limited legal authority to halt any settlement deal.
