- The Trump administration is taking the practice of 'sue and settle' tactics to a new extreme.
- President Donald Trump agreed to create a nearly $2 billion pot of money for distribution to “victims of lawfare,” as he sees fit.
- President Trump settled his $10 billion lawsuit on Monday in exchange for a $1.776 billion fund to compensate those who claim they were targets of government weaponization.
- The fund creates an unprecedented, taxpayer-backed mechanism to compensate people who claim they were wrongfully targeted, potentially including Jan. 6 defendants.
- The unusual case featured Trump demanding pay from the very agencies he oversees as president, with the settlement by acting Attorney General Todd Blanche, who was previously Trump's criminal defense lawyer.
- A five-member commission appointed by the attorney general will hear claims, and Trump can remove any member.
- The fund has until December 2028 to process claims, with money coming from the Treasury Department's Judgment Fund, paid for by taxpayers.
- Trump sued the IRS and the Treasury Department in January, demanding $10 billion over the leak of his tax returns years ago.
- President Trump is moving to dismiss the $10 billion lawsuit he filed against the IRS over the leak of his tax returns, according to a court filing.
- Hours after the announcement, the Department of Justice announced an anti-weaponization fund as part of the settlement with Trump.
- The department stated the $1.776 billion fund will allow the DOJ to settle and pay cases.
- Legal experts described the case as weak, since the leak has been attributed to a federal contractor, not a full-time employee of the U.S. government.
- The leaks of tax information happened between 2018 and 2020.
- The Justice Department recently told a judge it had entered negotiations to resolve the dispute.
- U.S. District Judge Kathleen Williams of Miami is presiding over the case.
- Judge Williams stated, Although President Trump avers that he is bringing this lawsuit in his personal capacity, he is the sitting president and his named adversaries are entities whose decisions are subject to his direction.
- Edward Whelan, a prominent conservative lawyer, remarked that there is a glaring conflict of interest with Trump being on both sides of the claim.
Former President Donald Trump has created a $1.776 billion anti-weaponization fund as part of a settlement over a lawsuit he initiated against the IRS for the leak of his tax returns. This fund aims to support those who he claims are victims of government "weaponization," potentially aiding individuals tied to the January 6 insurrection.
The unusual case saw Trump, while serving as president, seeking compensation from federal agencies, highlighting a significant conflict of interest. U.S. District Judge Kathleen Williams noted, "Although President Trump avers that he is bringing this lawsuit in his personal capacity, he is the sitting president and his named adversaries are entities whose decisions are subject to his direction." The settlement includes provisions for a five-member commission, appointed by the acting Attorney General Todd Blanche, to oversee claims, with Trump holding the power to dismiss any member.56
The fund is created from the Treasury Department's Judgment Fund, which is financed by taxpayer money allocated for government settlements. Claims can be processed until December 2028, just before Trump's potential exit from office. As the DOJ announced the establishment of this fund, it emphasizes a legal landscape significantly shaped by Trump's ongoing narrative about government overreach and weaponization against his supporters and himself.
In January, Trump had launched a $10 billion lawsuit against the IRS, claiming damages from the tax return leaks attributed to a federal contractor rather than government employees, as legal experts observed the lawsuit's substantial weaknesses.
“Trump has created a $1.8 billion fund to compensate those he claims were wrongfully targeted by the government. This move follows his decision to drop a $10 billion lawsuit against the IRS over tax return leaks.”
Context on Fund and Settlement
Justice Department's acting Attorney General Todd Blanche, who is overseeing the fund, previously served as Trump's defense lawyer. A five-member commission appointed by the attorney general will review claims against the fund, and Trump has the power to remove any member.
NPR