Thursday, May 21Thursday, May 21On Monday, May 18, 2026, former President Donald Trump, his two eldest sons, and the Trump Organization voluntarily dismissed their $10 billion lawsuit against the IRS and Treasury Department. The lawsuit stemmed from the 2019 leak of Trump’s confidential tax returns by a former IRS contractor, who later pleaded guilty and was sentenced to federal prison. The dismissal was filed in a Miami federal court and marked "with prejudice," meaning the case cannot be refiled .
The dismissal coincided with reports that Trump had negotiated the creation of a $1.7–1.8 billion taxpayer-funded compensation fund to compensate individuals he claims were "wrongfully targeted" by the Biden administration. This includes allies who faced legal consequences related to the January 6 Capitol riot. The fund is described as an unprecedented mechanism to address claims of government "weaponization" against Trump’s supporters. While Trump and his family will receive a formal apology under the settlement terms, they will not receive any monetary compensation from the IRS .
Critics, including Democratic Senator Ron Wyden, have condemned the fund as a "slush fund for right-wing political violence and subversion," arguing it represents an abuse of taxpayer dollars and an act of corruption. Wyden stated that Trump’s move to drop the lawsuit—despite controlling the IRS as president—was a "stunning act of corruption" . The case was notable for Trump demanding payment from federal agencies he oversaw while in office, raising ethical and legal concerns .
DOJ announces $1.7B fund to compensate Trump allies WASHINGTON (AP) — The Trump administration on Monday announced the creation a $1.7 billion fund to compensate allies…
europesays.com · 2 days ago
Trump administration creates $1.8bn fund for victims of government lawfare Settlement deal comes after US president and family drop $10bn IRS lawsuit over tax returns leak
financial times · 2 days ago
Justice department sets up $1.7bn fund to compensate Trump allies president claims were wrongfully targeted – US politics live In an unprecedented, self-dealing maneuver for a US president, Trump ends lawsuit against IRS in exchange for fund to compensate for supposed persecutionTrump moves to dismiss $10bn lawsuit against IRS amid reports hes considering settlementSign up for the Breaking News US emailDemocratic reactions to the news about Trump moving to withdraw his lawsuit against the IRS are coming in. Ron Wyden, a top Democrat on the Senate Finance Committee, said Trump deserved no credit for dropping the lawsuit, regardless of his reasons.Even by his standards the move hes trying to get away with now is a stunning act of corruption, said Wyden in a statement. What Trump wants is a $1.7bn 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. Continue reading...
theguardian · 2 days ago
Trump creates $1.8B anti-weaponization fund after dropping IRS suit President Trump settled his $10 billion lawsuit against the IRS on Monday in exchange for a $1.776 billion fund to compensate those who claim they were targets of government weaponization.Why it matters: The fund creates an unprecedented, taxpayer-backed mechanism to compensate people who claim they were wrongfully targeted by the Biden administration, including Jan. 6 defendants.Multiple news outlets had reported earlier that Trump was considering launching the nearly $1.8 billion fund as part of the talks to resolve his lawsuit.Trump, his sons and the Trump organization will receive a formal apology but no payment under the settlements terms.Catch up quick: Trump sued the IRS after a former contractor leaked his confidential tax returns to The New York Times and ProPublica during his first term. The contractor pleaded guilty and was sentenced to federal prison.The filing says the case was dismissed with prejudice, which means Trump cant refile it. Mondays filing didnt mention if the agencies settled with Trump.The unusual case featured Trump demanding pay from the very agencies he oversees as president. Editors note: This is a breaking news story and will be updated.
axios · 2 days ago
Trump drops IRS lawsuit to create $1.8B anti-weaponization fund President Trump, his two eldest sons and the Trump Organization voluntarily dismissed their $10 billion lawsuit against the IRS and Treasury Department on Monday, according to a filing in a Miami federal court.Why it matters: The dismissal comes as Trump has reportedly considered launching a $1.776 billion taxpayer-funded compensation fund for those who claim they were wrongfully targeted by the Biden administration, including Jan. 6 defendants.Multiple news outlets reported Trump was considering launching the nearly $1.8 billion fund as part of the talks to resolve his lawsuit.Catch up quick: Trump sued the IRS after a former contractor leaked his confidential tax returns to The New York Times and ProPublica during his first term. The contractor pled guilty and was sentenced to federal prison.The filing says the case was dismissed with prejudice, which means Trump cant refile it. Mondays filing didnt mention if the agencies settled with Trump.The unusual case featured Trump demanding pay from the very agencies he oversees as president. Editors note: This is a breaking news story and will be updated.
axios · 2 days ago
Trump moves to withdraw $10bn lawsuit against IRS amid talks of deal to compensate allies – US politics live Move comes after reports that Trump could end lawsuit in exchange for $1.7bn fund to compensate people he claims were wrongfully targetedTrump moves to dismiss $10bn lawsuit against IRS amid reports hes considering settlementSign up for the Breaking News US emailTrumps move to withdraw the lawsuit against the IRS came just two days ahead of a 20 May deadline in which the judge overseeing the case asked the parties for briefing on whether a legitimate controversy existed – a requirement for any lawsuit – because Trump controls the IRS.Upon the filing of this notice, no judicial analysis is appropriate, Trumps lawyers said in a brief filing on Monday requesting dismissal of the suit. Continue reading...
theguardian · 2 days ago
Trump, in court filing, says hes dropping his $10B lawsuit against IRS
news.yahoo.com · 2 days ago
Trump drops $10bn lawsuit against IRS and Treasury Legal action stemmed from leak of tax documents
financial times · 2 days ago
Trump reportedly withdraws $10bn lawsuit against IRS amid talks of deal to compensate allies – US politics live Move comes after Guardian report that Trump could agree to end lawsuit in exchange for $1.7bn fund to compensate people he claims were wrongfully targeted Sign up for the Breaking News US emailPresident Trump moved to dismiss his $10bn lawsuit against the Internal Revenue Service over the leak of his tax returns, the AP reported Monday.The move to withdraw comes after reports that the Trump administration planned to create a fund to compensate its allies. The lawsuit was filed in a federal court in Florida. Continue reading...
theguardian · 2 days ago
Trump drops IRS lawsuit amid reports of fund for allies The disclosure was made in a federal court filing in Florida, where the lawsuit was initially lodged last year
independent · 2 days ago
Trump Moves to Drop $10 Billion US Lawsuit Against IRS (2) President Donald Trump moved to drop his $10 billion lawsuit against the Internal Revenue Service over the 2019…
europesays.com · 2 days ago