Donald Trump IRS Lawsuit Ends, Creating $1.8 Billion Compensation Fund
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Donald Trump IRS Lawsuit Ends, Creating $1.8 Billion Compensation Fund

Donald Trump just turned the Justice Department into a compensation machine for his closest allies. The president’s administration announced a nearly $1.8 billion fund that Democrats are already calling one of the most “corrupt” acts in American history.

DOJ announces $1.8B fund for Donald Trump allies

The Trump administration announced Monday the creation of a nearly $1.8 billion fund to compensate allies of the Republican president. The Associated Press reports the “Anti-Weaponization Fund” of $1.776 billion resolves Trump’s lawsuit against the Internal Revenue Service. The settlement specifically addresses the leak of the president’s confidential tax returns.

Acting Attorney General Todd Blanche called it “a lawful process for victims of lawfare and weaponization to be heard and seek redress.” He added that the government’s machinery “should never be weaponized against any American.” A five-member commission appointed by Blanche will oversee the fund’s distribution going forward.

The fund allows people who believe they faced politically motivated prosecution to apply for payouts. Applicants can also seek formal apologies through the established process. The Justice Department stated there were no “partisan requirements” for applicants seeking compensation from the fund.

Democrats and government watchdogs quickly condemned the arrangement as unconstitutional and corrupt. Nearly 100 House Democrats signed a legal brief urging a judge to block the resolution entirely. Rep. Jamie Raskin called it “nothing but a racket designed to take $1.7 billion of taxpayer dollars out of the Treasury.”

Donald Sherman, president of Citizens for Responsibility and Ethics in Washington, called it “one of the single most corrupt acts in American history.” Trump responded at the White House that the fund was dedicated to “reimbursing people who were horribly treated.” He noted that a committee would handle all individual compensation decisions.

The lawsuit stemmed from former IRS contractor Charles Edward Littlejohn’s leak of Trump’s tax records to news outlets. Littlejohn received a five-year prison sentence in 2024 after pleading guilty to the charge. Judge Kathleen Williams dismissed the case on Monday but admonished government agencies for lacking transparency about the settlement documents.

Originally reported by Vritti Johar on Mandatory.com.

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