Trump may settle his lawsuit against IRS for $1.7bn fund to compensate allies
Donald Trump may settle his $10 billion lawsuit against the IRS by agreeing to drop the case in exchange for a $1.7 billion fund to compensate individuals he claims were wrongfully targeted by the Biden administration. The fund could include payments to more than 1,500 January 6 rioters and would be financed through the Treasury Department's Judgment Fund. Legal experts and ethics watchdogs have raised concerns about the unprecedented nature of a sitting president negotiating a settlement that could financially benefit himself and his allies.
- ▪Donald Trump, along with his two sons and family business, sued the IRS for $10 billion over the leak of his tax returns during his first term.
- ▪More than 1,500 January 6 rioters could be eligible for compensation from the proposed $1.7 billion fund.
- ▪The Justice Department is reportedly discussing using the Treasury’s Judgment Fund to finance the settlement, despite concerns about self-dealing and corruption.
- ▪Trump is also allegedly seeking a public apology from the IRS and a waiver of future audits on himself, his family, and his businesses.
- ▪A group of court-appointed attorneys has raised concerns that Trump may be improperly influencing the Justice Department’s legal decisions in the case.
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| Original publisher | US news | The Guardian |
| Canonical URL | https://www.theguardian.com/us-news/2026/may/16/trump-irs-lawsuit-compensation-fund |
| Publication time | Sat, 16 May 2026 16:00:13 GMT |
| Retrieval time | 2026-05-16T16:10:18.986Z |
| Last seen | 2026-05-16T16:28:55.680Z |
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Among other people, more than 1,500 January 6 rioters would be eligible to receive compensation from the fund. Photograph: ReutersView image in fullscreenAmong other people, more than 1,500 January 6 rioters would be eligible to receive compensation from the fund. Photograph: ReutersDonald TrumpTrump may settle his lawsuit against IRS for $1.7bn fund to compensate alliesIn unprecedented self-dealing maneuver, billions of taxpayer dollars could be paid to US president and his alliesCate Brown and Sam LevineSat 16 May 2026 12.00 EDTSharePrefer the Guardian on GoogleThere is growing concern Donald Trump’s massive $10bn lawsuit against the Internal Revenue Service may soon be settled by his own administration – an unprecedented, self-dealing maneuver for a US president, in which billions of…
Excerpt limited to ~120 words for fair-use compliance. The full article is at US news | The Guardian.
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