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Trump Weighs Dropping $10 Billion IRS Suit for $1.7 Billion ‘Weaponization’ Fund, Reports Say

The reported settlement would channel taxpayer money through a new commission controlled by the executive branch, triggering constitutional and oversight alarms.

Overview

  • Multiple outlets reported Friday that Trump is expected to withdraw the $10 billion case in return for a roughly $1.7 billion program to pay people who say Biden-era agencies targeted them, though talks are ongoing.
  • Sources say a five-member commission would run the payouts, the president could remove commissioners, and the process and recipient names might stay confidential.
  • Jan. 6 defendants—about 1,600 people charged—and organizations linked to Trump could apply, while Trump would be barred from direct payments under the drafts.
  • Officials have discussed using the Treasury’s Judgment Fund, a permanent account that pays federal settlements, in a way critics say sidesteps Congress’s role to approve new spending.
  • U.S. District Judge Kathleen Williams has questioned whether a president can sue agencies he controls and ordered briefs by May 20, as Democrats denounce the reported plan as a “slush fund” and signal court and legislative challenges.