President Donald Trump, along with sons Donald Trump Jr. and Eric Trump and the Trump Organization, has agreed to dismiss a $10 billion lawsuit against the Internal Revenue Service as part of a settlement with the Justice Department that creates a nearly $1.8 billion compensation fund for people claiming they were unfairly targeted by government investigations.
The Justice Department announced the establishment of the Anti-Weaponization Fund to hear and redress claims of targeting by previous administrations. Acting Attorney General Todd Blanche announced Monday that the agreement will establish a $1.776 billion “Anti-Weaponization Fund,” designed to review complaints from individuals who say they were victims of politically motivated investigations or “lawfare.” The Justice Department said the Trumps will not receive financial compensation, though they will receive a formal apology. “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,” Blanche said. “As part of this settlement, we are setting up a lawful process for victims of lawfare and weaponization to be heard and seek redress.”
Trump originally filed the lawsuit in January in federal court in Miami, accusing the IRS and Treasury Department of improperly allowing former contractor Charles Littlejohn to leak his tax records to media organizations in 2019 and 2020. Littlejohn later pleaded guilty and received a five-year prison sentence for disclosing confidential tax information. The lawsuit claimed the leak damaged the Trump family’s reputation and business interests, alleging the disclosures caused financial harm and public embarrassment.
Under the settlement, the newly created fund will be overseen by a five-member commission appointed by the attorney general. The panel will have authority to review claims, issue formal apologies, and potentially award compensation to approved applicants. The DOJ said claims will no longer be accepted after Dec. 15, 2028, and any remaining money will return to the federal government.
As part of the agreement, Trump also agreed to withdraw separate administrative claims tied to investigations involving Mar-a-Lago and the Russia inquiry.
Court filings submitted Monday the U.S. District Court for the Southern District of Florida confirmed the lawsuit was dismissed “with prejudice,” meaning the same claims cannot be brought again. Trump’s legal team also argued the dismissal does not require judicial approval, effectively sidestepping further review from U.S. District Judge Kathleen Williams, who had recently questioned whether a sitting president could legally sue agencies under his own administration.
The settlement quickly drew criticism from Democratic lawmakers and ethics groups. Ninety-three Democratic members of Congress attempted to intervene in the case, warning the arrangement could direct taxpayer money toward Trump allies. Citizens for Responsibility and Ethics in Washington sharply condemned the deal, calling it “the most brazen act of self-dealing in the history of the presidency.” The organization argued the fund could potentially benefit political supporters and raised concerns about constitutional issues tied to presidential financial interests.
Meanwhile, Trump’s legal team defended the settlement, saying the president pursued the agreement “for the benefit of the American people” and would continue efforts to hold government agencies accountable for alleged political targeting.
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