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Trump Drops IRS Suit as DOJ Creates $1.776 Billion 'Anti-Weaponization' Fund

The payout program taps the Treasury Judgment Fund, prompting new court challenges over self-dealing.

Overview

  • Trump, which moved to dismiss his $10 billion IRS and Treasury lawsuit Monday, set the stage for the Justice Department to unveil a $1.776 billion fund to compensate people who claim they were unfairly targeted by federal investigators.
  • The fund will be run by a five‑member commission appointed by the acting attorney general with one member chosen in consultation with congressional leaders, and the president can remove any commissioner; the program stops taking claims on December 15, 2028.
  • Justice Department materials say the money will come from the permanent Judgment Fund, and the $1.776 billion figure reflects a projection of potential claims rather than a tally of specific payouts.
  • The Trumps will receive a formal apology but no cash, and officials say any claimant who believes they were wronged — including January 6 defendants or even Hunter Biden — can apply for relief such as help with legal costs.
  • Nearly 100 House Democrats filed an amicus brief minutes after the dismissal accusing the deal of self‑dealing, as the judge in the IRS case had already questioned whether a president can sue agencies he directs and set a May 27 hearing on adverseness.