Trump Administration Settles Tax Claims, Creates "Anti-Weaponisation Fund"

The Trump administration has reached a settlement that permanently bars the US government from pursuing current tax claims against President Donald Trump, his sons and the Trump Organisation as part of Trump’s $10 billion lawsuit against the Internal Revenue Service over the leak of his tax returns.

According to a one-page document posted on the Justice Department’s website Tuesday, the US is “forever barred and precluded” from examining or prosecuting Trump, his sons and the Trump Organisation over current tax matters.

The settlement goes beyond resolving the litigation and effectively shields the president from further examination of his finances and legal conduct.

The agreement was announced alongside the creation of a nearly $1.8 billion “Anti-Weaponisation Fund” designed to compensate people who believe they were unfairly investigated or prosecuted for political reasons.

The $1.776 billion fund will allow individuals who claim they were targeted by law enforcement agencies, including during the Biden administration, to apply for payouts.

Acting Attorney General Todd Blanche described the initiative as “a lawful process for victims of lawfare and weaponization to be heard and seek redress.”

Speaking at the White House on Monday, Trump said the fund is intended for “reimbursing people who were horribly treated.”

During a congressional hearing Tuesday, Blanche declined to rule out whether people involved in the January 6, 2021, attack on the U.S. Capitol could receive payments from the fund.

The fund announcement came after Trump, Eric Trump, Donald Trump Jr. and the Trump Organization agreed to drop their lawsuit against the IRS and the Treasury Department.

The lawsuit alleged that the leak of confidential tax records caused reputational and financial harm and negatively affected their public standing.

According to a separate settlement agreement posted on the Justice Department’s website Monday, Trump will receive a formal apology from the US government but “will not receive any monetary payment or damages of any kind,” from the settlement.

Democratic lawmakers and ethics watchdog groups criticized both the settlement and the compensation fund, calling the arrangement corrupt, opaque and potentially a “slush fund” for Trump and his allies.

Senator Ron Wyden, D-Ore, said Democrats intend to “fight every element of this self-dealing settlement." “Not only is this another heinously corrupt act by the most corrupt administration in history, it’s clearly a violation of the law that prohibits interference by executive branch officials in IRS audits.”