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Trump Drops His Suit Against Treasury in Exchange for a $1.776 Billion ‘Anti-Weaponization Fund’

The Justice Department said Trump will receive an “apology but no monetary payment.”

President Donald Trump

Manuel Balce Ceneta/AP

President Donald Trump dropped a $10 billion lawsuit against the Internal Revenue Service and the Treasury Department on Monday, in exchange for the government creating a new “Anti-Weaponization Fund” to compensate people investigated by the government.

The filing to dismiss the president’s case did not provide any details on a potential settlement, but the Justice Department subsequently announced the new $1.776 billion defense fund as part of the terms of the agreement. It will be managed by the Treasury, according to an order from the U.S. acting Attorney General Todd Blanche.

“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 in a press release.

The Department of Justice said Trump will receive an “apology but no monetary payment or damages of any kind.” Trump’s legal team will also drop two pending lawsuits seeking damages for the 2022 raid at Mar-a-Lago and over allegations that Trump’s 2016 campaign colluded with Russia.

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The idea for the defense fund gained traction in Trump’s circle of allies as the DOJ and the White House mulled over how to handle this $10 billion case against the IRS and the Treasury, The New York Times reported.

Trump and the other plaintiffs, Donald Trump Jr., Eric Trump and The Trump Organization LLC, filed the lawsuit in federal court in Florida in January. They alleged that the government failed to properly secure their confidential tax returns.

While working as a consultant on a government contract for Booz Allen Hamilton, Charles Littlejohn secretly downloaded the tax documents of thousands of wealthy individuals, later leaking Trump’s tax returns to The New York Times and ProPublica between 2018 and 2020.

Littlejohn leaked 15 years of Trump’s tax returns, and the documents revealed Trump paid no federal income tax for 10 of those years. Littlejohn pleaded guilty to unauthorized disclosure of tax returns and return information in October 2023 and was sentenced to five years in prison.

The president’s lawsuit against the IRS and Treasury is unusual in that Trump is the plaintiff and oversees the defendants.

U.S. District Judge Kathleen Williams, who is overseeing the case, filed an order in late April asking the Justice Department and Trump’s private attorneys to provide an explanation ahead of a scheduled hearing on May 27 to explore whether the president can sue agencies he now oversees. The judge also sought the help of six outside attorneys appointed as amici curiae, or advisers to the court, to help review the legal questions in the case.

“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,” Williams wrote in the filing. The Obama appointee also argued that the case only has standing if there is sufficient “adverseness” between the plaintiffs and the defendants.