Trump creates – The Justice Department announced creation of a $1.776 billion fund to compensate “victims of lawfare and weaponization,” after President Donald Trump withdrew a $10 billion lawsuit against the IRS. The plan calls for a five-member commission appointed by the A
The Justice Department moved quickly after President Donald Trump stepped back from a high-stakes fight with the IRS: it announced the creation of a $1.776 billion fund meant to send taxpayer money to what officials described as “victims of lawfare and weaponization.”
The department confirmed the fund on Monday. framing it as compensation for people it characterizes as harmed by misuse of federal power.. A DOJ statement issued with the announcement laid out the structure: the program would “consist of a Commission of five members appointed by the Attorney General.” It also specified that “one Member will be chosen in consultation with congressional leadership. ” while “the President can remove any member.”
Hours before the announcement. Trump withdrew a $10 billion lawsuit against the Internal Revenue Service. a move that opened the door for the fund’s creation.. The timing fed fresh concern about whether the president was using taxpayer funds to benefit himself indirectly. after scrutiny rose over the idea that a settlement would come entirely from public money.
The lawsuit. originally filed in January. sought $10 billion in damages tied to the 2019 leak of Trump’s tax filings to The New York Times.. In recent weeks. additional attention focused on the settlement mechanics: administration officials had confirmed that if a deal were reached. it would be paid with taxpayer funds.
The withdrawal also intensified questions about the fund’s purpose and who could be eligible.. Internal White House discussions described a plan that would involve dropping the IRS suit in exchange for a massive payout to allies and other individuals Trump believes were wronged by past administrations. with particular emphasis on former President Joe Biden.
Supporters of the move said it would be tied to ending lingering IRS scrutiny.. The described settlement would also “kill any existing IRS audits on Trump. members of his family. or associated businesses.” That promise sits alongside other concerns about broader impact: reporting said the fund could potentially cover claims from people who say they were targets of overreach or “weaponization” during the Biden administration.
One group explicitly mentioned in that reporting was the roughly 1,600 Jan.. 6 defendants whom Trump pardoned soon after taking office last year.. Other coverage said the agreement might include a provision meant to prevent Trump from directly pocketing money. but that such a restriction might not extend to his businesses or other enterprises and associations.
Trump has repeatedly claimed that any money he would receive would go to charity. The reporting surrounding the fund characterizes that claim as questionable given the scale of the proposed payouts and the roles played by the president and his family.
The pattern in the sequence is hard to miss: Trump withdraws a $10 billion IRS lawsuit. the DOJ then announces a $1.776 billion fund with a commission controlled by presidential removal power. and the described settlement package is linked to ending IRS audits tied to Trump and potentially opening a path for claims from groups accused of being targeted for “lawfare” and “weaponization.”
Trump IRS lawsuit Justice Department $1.776 billion fund $10 billion lawsuit lawfare and weaponization commission of five Attorney General presidential removal power Jan. 6 defendants taxpayer money