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Judge Reopens Trump Lawsuit to Probe $1.8 Billion IRS Settlement

The order presses the court to investigate whether the settlement was procured by deception.

A U.S. Capitol window is seen smashed a day after supporters of U.S. President Donald Trump stormed the Capitol in Washington, U.S., January 7, 2021. REUTERS/Erin Scott/File Photo
Members of law enforcement clash with pro-Trump protesters, who stormed the U.S. Capitol during a rally to contest the certification of the 2020 U.S. presidential election results by the U.S. Congress, at the U.S. Capitol Building in Washington, D.C., U.S. January 6, 2021. Picture taken January 6, 2021. REUTERS/Ahmed Gaber./File Photo
U.S. President Donald Trump speaks during the signing ceremony for an executive order on mail ballots, in the Oval Office of the White House in Washington, D.C., March 31, 2026. REUTERS/Evan Vucci/File Photo
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Overview

  • A federal judge in Miami revived President Trump’s $10 billion suit on Friday and ordered his lawyers to say by June 12 whether the case should be formally reopened because the court may have been the victim of a fraud.
  • The judge acted after court papers from a bipartisan group of more than 30 former federal judges urged a formal inquiry into whether the deal corrupted the judicial process.
  • The Justice Department released agreements that created an approximately $1.7–$1.8 billion “Anti‑Weaponization” fund and included provisions that appeared to shield Trump, his family, and his businesses from certain IRS audits.
  • Reporting shows the DOJ did not contest the original suit in court and no government lawyer entered an appearance, a fact that critics say undercuts the legitimacy of the rapid settlement.
  • Separately, a federal judge in the Eastern District of Virginia temporarily blocked steps to set up or disburse the fund and multiple lawsuits and congressional oversight efforts continue to challenge the settlement and its use of the Treasury Judgment Fund.