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WASHINGTON — The U.S. Department of Justice announced Monday a new “anti-weaponization” settlement fund as a condition of President Donald Trump voluntarily dropping his multi-billion-dollar lawsuit against the Internal Revenue Service for the leak of his tax returns several years ago.
Trump, his sons Don Jr. and Eric, and the Trump Organization moved to drop the $10 billion suit Monday in the U.S. District Court for the Southern District of Florida, with prejudice — meaning he cannot revive it in the future.
Shortly after Trump’s filing hit the court docket, the DOJ announced the creation of a $1.776 billion settlement, not to be paid to Trump or his family, but to be divvied up among “others who suffered weaponization and lawfare,” according to a department press release.
Democrats swiftly denounced the settlement as a “slush fund.”
The move presumably means those pardoned by Trump for crimes related to the Jan. 6, 2021, attack on the U.S. Capitol could seek money from the government. The DOJ’s announcement did not specifically mention President Joe Biden, former Attorney General Merrick Garland or the Capitol riot, and noted there are “no partisan requirements to file a claim.”
Trump campaigned on pardoning anyone prosecuted by the Biden administration for crimes related to the 2021 attack, describing them as “patriots” and “hostages.” He pardoned roughly 1,600 defendants on the first night of his second term, and the White House published a dedicated web page to those targeted by “a weaponized Biden DOJ.”
In addition to monetary relief, eligible claimants will also receive a formal apology from the government.
Acting Attorney General Todd Blanche, Trump’s former personal defense attorney, said in a statement, “The machinery of government should never be weaponized against any American, and it is this Department’s intention to make right the wrongs that were previously done while ensuring this never happens again.”
“As part of this settlement, we are setting up a lawful process for victims of lawfare and weaponization to be heard and seek redress,” he added.
Trump, his family and the Trump organization will also receive a formal apology but no monetary damages as part of the arrangement, according to the DOJ.
Trump Tax Info Leaked
The president and his family had filed suit in January against the IRS for the leak to news media of their tax information by a contractor in late 2019. The contractor was sentenced for the leak in early 2024.
When questioned by the press Monday afternoon, Trump said he knew “very little about” the creation of the fund.
“These were people that were weaponized and really treated brutally by a system that was so corrupt, with corrupt people running it, and they’re getting reimbursed for their legal fees and the other things that they had to suffer,” Trump said.
A committee of five “very talented people, very highly respected people” will decide how to distribute the money, he said.
Funding an “Insurrectionist Army”
Senate Minority Leader Chuck Schumer denounced the plan Monday afternoon as “one of the most depraved” uses by Trump of the Justice Department.
“This weekend, Trump worked up a plan to shake hands with himself in order to fund his insurrectionist army to the tune of billions,” Schumer, D-N.Y., said in a statement.
“Donald Trump sued his own government. Trump’s DOJ settled with Trump. And now Trump gets a nearly $2 billion slush fund to reward his own allies, loyalists, and insurrectionists. That is not justice. That is corruption happening in broad daylight,” he continued.
In an amicus brief filed Monday afternoon, 93 House Democrats urged U.S. District Judge Kathleen Mary Williams, nominated by President Barack Obama, to immediately dismiss Trump’s “collusive lawsuit” for lack of jurisdiction.
The Democratic lawmakers argued in the filing the fund is “plainly unlawful” for numerous reasons.
“(F)iling a collusive lawsuit only to immediately dismiss it in order to produce a collusive settlement that is illegal multiple times over would not only be legally barred; it would also raise serious questions about whether the parties have manipulated the court system to achieve illicit ends,” according to the brief.
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