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Judge Reopens Trump IRS Suit to Investigate Potential ‘Collusion’

The ruling will determine whether the settlement — including Trump’s $1.8 billion “anti-weaponization” fund — was a “product of collusion.”

President Donald Trump speaks to reporters.

Trump’s settlement also barred the IRS from “examinations” of the president, his family members and his businesses. AP

A federal judge in Miami has reopened President Donald Trump’s $10 billion case against the IRS in response to allegations that its dismissal was a “product of collusion and is itself a fraud on the court.”

U.S. District Judge Kathleen Williams’ Friday evening decision comes after a group of 35 former federal judges asked her to reopen the case and rule on whether Trump’s lawsuit — which resulted in creation of a nearly $1.8 billion “anti-weaponization” fund — constitutes abuse of the judicial process.

Trump’s settlement, announced after Williams previously closed the case, included broad language that bars the IRS from “examinations” of the president, his family members and his businesses.

Also on Friday, a federal judge in Virginia temporarily barred the federal government from taking more steps to create or disburse money from the fund. The order was meant “to ensure that no funds are irreversibly disbursed,” U.S. District Judge Leonie Brinkema, a Bill Clinton appointee, wrote.

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Trump’s initial January lawsuit concerned a leak of his tax returns in 2019 and 2020, but Acting Attorney General Todd Blanche announced a settlement had been reached before the lawsuit advanced, prompting creation of a settlement fund meant to compensate people who claim they were victimized by the federal government — which could include some of the hundreds of people Trump pardoned for their participation in the Jan. 6 riots.

Williams, a Barack Obama appointee, now says she wants to investigate the assertion that the case’s dismissal was “premised on deception.” Trump and his team have until June 12 to respond with more details about the charges of collusion and whether the case should be reopened. Williams did not request anything from government defendants.

The nearly $1.8 billion fund has not only rankled congressional Democrats but also caused deep divisions among Republicans, who abruptly dropped plans to vote on an immigration spending package this month after expressing concern over the fund.

Blanche and other administration officials have attempted to promote the fund to hesitant senators — including suggesting members “whose records were secretly subpoenaed” could also apply for a payout. Despite the White House’s courting, multiple Republicans remain frustrated over how it has derailed the reconciliation process.