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Trump Moves to Drop IRS Suit as DOJ Discloses $1.7 Billion Fund

The move follows reports of a settlement that could send taxpayer money to allies who claim they were wrongly investigated, drawing criticism from Democrats and ethics groups.

  • The U.S. Department of Justice created a $1.776 billion Anti-Weaponization Fund as part of a settlement with President Donald J. Trump, his family, and The Trump Organization to resolve the federal lawsuit against the Internal Revenue Service over leaked tax returns.
  • Under the settlement, Trump and his family dropped the lawsuit and related claims, receiving a formal government apology but no monetary compensation.
  • The fund provides a voluntary process for individuals alleging government weaponization and lawfare to seek financial compensation, overseen by a five-member commission appointed by the Attorney General, and will cease operations by December 15, 2028.
  • Critics, including Democrat Jamie Raskin and former FBI Director James Comey, labeled the fund unconstitutional and a political grievance mechanism, while the Department of Justice defended it as a lawful redress process.
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abc12/WJRT broke the news in Flint, United States on Sunday, May 17, 2026.
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