Trump poised to drop IRS suit, launch $1.7B 'weaponization' fund for allies: ABC News
The proposed deal would use Treasury funds to compensate allies, including nearly 1,600 Jan. 6 defendants, while ending Trump’s $10 billion IRS case.
- On Thursday, President Donald Trump is expected to drop his $10 billion IRS lawsuit in exchange for creating a $1.7 billion compensation fund to settle claims from allies alleging harm from the Biden administration's "weaponization" of the legal system.
- The lawsuit followed unauthorized 2019–2020 tax return leaks by former IRS contractor Charles Littlejohn, while the proposed fund targets nearly 1,600 individuals pardoned by Trump after the January 6 Capitol riot.
- Treasury Department funds would finance a five-member commission authorized to award payments without mandatory disclosure of procedures or recipients. Trump retains authority to remove commissioners without cause, sources reported.
- U.S. District Judge Kathleen Williams previously questioned whether the lawsuit against government entities is "sufficiently adverse" given Trump's position as sitting president. The settlement seeks to resolve this standing issue before next week's court deadline.
- Beyond this settlement, Trump pursues an additional $230 million in claims tied to his Mar-a-Lago estate and past Russia investigations. The proposed fund establishes an unprecedented mechanism for resolving administrative disputes through presidential appointments rather than traditional litigation.
51 Articles
51 Articles
According to reports, the US president is seeking a billion-dollar fund for allies against whom the US judiciary has been investigating. Democrats speak of "crazy corruption."
Washington, May 15 (EFE).- U.S. President Donald Trump's Administration is studying the creation of a fund of up to $1.7 billion to compensate political allies and other individuals investigated by the Department of Justice during Joe Biden's tenure, as revealed this Friday by The New York Times. As The New York Times revealed this Friday, the plan has not yet been approved, but is urgently discussed by officials of the White House, the Departme…
Trump’s brazen plan for a $1.7 billion slush fund
President Donald Trump speaks to the press as he departs the White House on May 12, 2026. | Kevin Dietsch/Getty Images This story appeared in The Logoff, a daily newsletter that helps you stay informed about the Trump administration without letting political news take over your life. Subscribe here. Welcome to The Logoff: President Donald Trump may have found a new way to repurpose taxpayer money to his own ends. What’s happening? Earlier this …
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