Retired federal judges say Trump IRS settlement may be fraudulent
Nearly three dozen former federal judges are asking a court to reopen the legal dispute between President Donald Trump and the IRS after the Justice Department created a controversial $1.8 billion “Anti-Weaponization Fund” as part of the settlement.
In a new legal filing Wednesday, the former judges argued the agreement raises serious questions about whether the lawsuit was legitimate — and whether the settlement process improperly bypassed judicial scrutiny.
Former judges challenge settlement
The dispute stems from Trump’s $10 billion lawsuit over the leak of his tax returns.
Last week, the Justice Department announced it had resolved the case and would administer a nearly $1.8 billion fund designed to compensate people who claim they were targeted by a “weaponized” justice system. The fund could potentially benefit Trump allies and some people connected to the Jan. 6 Capitol riot cases.
Court never resolved core legal issue
Before the settlement was finalized, U.S. District Judge Kathleen Williams had been examining whether the lawsuit met the constitutional requirement of a legitimate “case or controversy” — meaning whether the parties were truly in legal conflict.
But before Williams could rule on that question, Trump and the federal government jointly asked to dismiss the case, which she approved.
Now, 35 retired judges say the court should reopen the case and determine whether the settlement itself was improper.
“The parties here dismissed this case before the Court could complete its inquiry into whether there was an actual case or controversy,” the filing states, accusing the parties of potentially “looting the federal treasury” through settlement structure.
The filing also argues the agreement may have involved “collusion” and could amount to “fraud on the Court.”
Anti-weaponization fund faces new scrutiny
The settlement has already triggered additional legal and political fallout.
Former Capitol Police officers who defended the Capitol during the Jan. 6 attack have filed a separate lawsuit seeking to block the fund, the first direct legal challenge to the program.
A senior Treasury Department attorney also resigned hours after the DOJ announced the settlement.
The Justice Department has defended the fund, saying there are no partisan requirements tied to eligibility.
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Ella Rae Greene, Editor In Chief
