Trump Drops IRS Lawsuit as DOJ Creates $1.776 Billion ‘Anti-Weaponization Fund’

President Trump, his two eldest sons, and the Trump Organization on Monday dropped their $10 billion lawsuit against the Internal Revenue Service as the Justice Department announced a new $1.776 billion compensation program for people who say they were unfairly targeted by the federal government under the Biden administration.The Justice Department said the new program, called the “Anti-Weaponization Fund,” was part of the resolution of Mr. Trump’s lawsuit over the leak of his tax returns by a former IRS employee. According to the DOJ, the fund will create a claims process for people alleging they were victims of political or legal abuse and will be able to award both formal apologies and monetary compensation.“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,” Acting Attorney General Todd Blanche said in a statement. “As part of this settlement, we are setting up a lawful process for victims of lawfare and weaponization to be heard and seek redress.”No partisan requirements are necessary to file a claim, the DOJ said. The fund will be financed through the Justice Department’s judgment fund, a standing appropriation used to pay settlements and claims, and will stop accepting claims no later than December 15, 2028. Any money left when the fund ceases operations will revert to the federal government. Mr. Trump’s lawsuit, filed in January, accused the IRS and Treasury Department of failing to prevent the leak of his confidential tax records in 2019 and 2020 by former IRS employee Charles Littlejohn, who is now serving a five-year sentence for releasing the forms without authorization. As part of the settlement, the Justice Department said Mr. Trump will also withdraw two administrative claims, “including for damages resulting from the unlawful raid of Mar-a-Lago and the Russia-collusion hoax.”“The use of government power to target individuals or entities for improper and unlawful political, personal, or ideological reasons should not be tolerated by any administration,” said Principal Associate Deputy Attorney General Trent McCotter. The deal drew immediate condemnation from Democrats and government watchdogs, who called it an abuse of taxpayer money and warned it could reward Trump allies with little oversight.Sen. Elizabeth Warren of Massachusetts wrote on X, “Trump is one step closer to creating a giant slush fund of taxpayer dollars for his MAGA buddies.” She added, “This is corruption on steroids.”“It’s official. Trump dropped his lawsuit against his own IRS to get a $1.8 billion slush fund to pay his political allies. Your tax dollars become his giveaways to his friends,” wrote Senator Mark Warner of Virginia.“What Trump wants is a $1.7 billion slush fund for right-wing political violence and subversion, and if he follows through, it will be the most brazen theft and abuse of taxpayer dollars by any president in American history,” Sen. Ron Wyden of Oregon told CNBC, who accused the president of trying to “cash in on a junk lawsuit before a judge can throw it out.”

Trump Drops IRS Lawsuit as DOJ Creates $1.776 Billion ‘Anti-Weaponization Fund’

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