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US government agrees to drop tax claims against Trump in broadening of IRS lawsuit settlement

The revised deal bars the IRS from pursuing past tax claims against Trump and his companies while setting up a $1.776 billion compensation fund.

  • The U.S. government settled a $10 billion lawsuit related to leaked tax returns by permanently barring the IRS from auditing or prosecuting any tax claims filed by Donald Trump, his family, or affiliated entities before May 19, 2026.
  • The Department of Justice established a $1.776 billion Anti-Weaponization Fund to compensate individuals alleging politically motivated federal investigations or prosecutions.
  • Michael Caputo was the first to file a claim with the Anti-Weaponization Fund, seeking $2.7 million for alleged political targeting by federal investigations.
  • Critics, including Democrats and some Republicans, condemned the settlement and fund as potentially corrupt and unprecedented, expressing concerns it grants Trump and his family special treatment and may function as a 'slush fund' for political allies.
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Trump 'wasn't involved' in the settlement that drops tax claims against him

The Justice Department has granted President Donald Trump and his family immunity from ongoing inquiries into their taxes, but experts question the legality of the settlement.

·Milwaukee, United States
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Politico broke the news on Tuesday, May 19, 2026.
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