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.
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75 Articles
Government analyzes using a historic compensation fund created during the Obama administration as a reference
Trump's IRS suit may end with a $1.7 billion compensation fund
US officials have discussed creating a $1.7 billion federal fund to pay victims of so-called government weaponization to resolve President Donald Trump’s lawsuit against the Internal Revenue Service. Million-dollar payouts the administration has already made to some of his supporters provide a roadmap for where the money might go. The settlement talks have taken place ahead of a key deadline next week in Trump’s $10 billion suit seeking to hold …
US govt likely to create a $1.7 bn compensation fund in exchange for Trump dropping his lawsuit against IRS: Report
The US DOJ is reportedly finalising a $1.7 billion compensation fund and “Truth and Justice Commission” for alleged victims of government “weaponization” in exchange for President Donald Trump dropping his IRS lawsuit over leaked tax records.
Trump administration to create $1.776B 'Truth and Justice Commission' to compensate allies: Sources
U.S. President Donald Trump waves as he prepares to board Air Force One at Beijing Capital International Airport on May 15, 2026 in Beijing, China. (Photo by Alex Wong/Getty Images) (NEW YORK) — The Department of Justice is finalizing a deal to launch a so-called “Truth and Justice Commission” and establish a compensation fund of $1,776,000,000 to pay claims made by alleged victims of government “weaponization” in exchange for President Donald T…
Hawaii Tribune-Herald
The spokesman-ReviewTrump administration weighs $1.7 billion fund for allies investigated under Biden
WASHINGTON — The Trump administration is considering the establishment of a $1.7 billion fund to compensate the president’s allies and others investigated by the Justice Department under President Joe Biden, creating an ethical and political minefield for Republicans and the department’s leadership. The post Trump administration weighs $1.7 billion fund for allies investigated under Biden appeared first on Hawaii Tribune-Herald.
Could convicted perpetrators in the U.S. soon be compensated for their punishments? According to reports from the U.S. media, the Trump administration is planning to do so.
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