Trump to drop $10B IRS lawsuit in deal for ‘weaponization’ victims: Report
President Donald Trump is expected to drop his $10 billion lawsuit against the IRS as part of a broader effort tied to claims the federal government was “weaponized” against conservatives during the Biden administration, according to ABC News.
The proposed agreement would also end roughly $230 million in additional legal claims tied to the 2022 FBI search of Mar-a-Lago and the Russia investigation during Trump’s first term.
The lawsuit centered on the 2019 leak of Trump’s tax returns, which were later published by The New York Times and ProPublica.
A spokesman for Trump’s legal team accused the IRS of allowing “a rogue, politically-motivated employee” to improperly release confidential tax information involving Trump, his family and the Trump Organization.
Proposed fund would compensate alleged victims
In exchange for dropping the lawsuits, the administration is pushing for the creation of a $1.7 billion compensation fund that would pay people who claim they were unfairly targeted by the Biden administration.
According to ABC, the proposed commission overseeing the payouts would consist of five members and operate by majority vote.
Trump would reportedly have authority over appointments to the commission, which would not face formal outside oversight when approving awards.
The money would come from the Treasury Department’s Judgment Fund, the federal account used to pay legal settlements and court judgments.
Jan. 6 defendants could seek payouts
ABC reports that many of the people expected to seek compensation are individuals charged in connection with the January 6 Capitol attack.
Trump pardoned many January 6 defendants shortly after returning to office, calling them patriots who had been treated unfairly by the federal government.
The administration’s Justice Department Weaponization Working Group has also been reviewing claims involving alleged targeting of conservative and Christian groups during the Biden years.
Ethical concerns raised inside administration
The proposed arrangement has already triggered concerns from some officials inside the administration, according to ABC.
Those concerns center on the president having influence over a commission distributing taxpayer money to people who may include political allies and supporters.
The settlement discussions surfaced just days before the Justice Department and Trump’s legal team were expected to explain to U.S. District Judge Kathleen Williams why the IRS lawsuit should continue to move forward.
In an earlier filing, Williams described the case as unusual because “he is the sitting president and his named adversaries are entities whose decisions are subject to his direction.”
Trump has previously said any personal financial award tied to lawsuits against the government would be donated to charity.
“It’s awfully strange to make a decision where I’m paying myself,” Trump said last October.
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Ella Rae Greene, Editor In Chief
