Donald Trump sued his own IRS for $10 billion only to end up settling the case through his Department of Justice, which agreed to set up a nearly $1.8 billion compensation fund for his allies in exchange for Trump dropping his threats.
One day later, Trump squeaked out one more term of the deal in his favor: the government is formally dropping any tax investigations into the president, his family and his companies.
A nine-page settlement agreement released on Monday did not mention any resolution of potential investigations into Trump’s tax returns, which he claims were being audited by the IRS.
But a newly published one-page document — signed only by Acting Attorney General Todd Blanche and dated May 19 — includes a promise that the federal government won’t investigate potential claims against Trump, his family members or his companies over unpaid taxes.
The IRS is “forever barred and precluded” from pursuing “examinations” into Trump and “related or affiliated individuals,” including his family, trusts and “related companies, affiliates and subsidiaries,” the document says. The agreement applies to “tax returns filed before the effective date” of Monday’s settlement, according to the document.
Blanche did not sign the initial agreement, which was signed by Associate Attorney General Stanley Woodward, IRS CEO Frank Bisignano and Trump attorney Daniel Epstein.
It’s unclear why a sweeping stipulation that shields the president, his family and companies was added one day later.
“As is customary in settlements, both sides have executed waivers of a variety of claims that were or could have been brought,” Justice Department spokesperson Natalie Baldassarre told The Independent.
“There would be little point in settling several significant claims if either party could simply turn around and seek to initiative more adverse claims that could have been pursued previously,” she added. “This is only with respect to existing audits, not future.”
The newly created $1.776 billion “Anti-Weaponization Fund” will accept claims from people who allege government “weaponization” against them following the president’s ongoing allegations that Democratic officials have conspired against him and his allies.
Trump and his family members are not eligible for that relief, according to Blanche.
But Trump, his former criminal defense attorney and Vice President JD Vance have not ruled out millions of taxpayer dollars doing to people who assaulted law enforcement officers during the January 6 attack, or to Trump’s donors.
A five-member commission — with members appointed by Blanche — will manage the fund.
Trump told reporters on Monday that who gets paid will be “dependent on a committee” made up of “very talented people, very highly respected people.”
The administration’s announcement offered few details about how the fund would disburse money to eligible victims, or who would even be eligible.
But the list of recipients will remain “confidential,” Blanche told the Senate Appropriations Committee on Tuesday.
He quietly signed off on the memo that morning.
The proposal has alarmed critics and watchdog groups who fear the Trump administration is effectively handing taxpayers’ dollars to the president’s allies after an unprecedented series of pardons and commutations for his supporters.
Brian Morrissey, the general counsel of the Treasury Department, resigned hours after the fund was announced.
“Trump’s dirty deal has crossed the line into illegality,” said Public Citizen co-presidents Robert Weissman and Lisa Gilbert said in a statement Tuesday.
The watchdog group, which has repeatedly sued the administration since Trump returned to office, says the action violates federal statute that prohibits presidential requests to terminate audits.
“Here’s what has happened: Trump filed a bad-faith lawsuit based on actions that occurred while he was president of the United States. He sought a preposterous level of damages. Because the case involved Donald Trump on both sides, the court raised serious concerns about it moving forward,” they said.
They accused Trump of having “conspired” with the Justice Department to drop the case and agree on an out-of-court settlement that also shields him from prosecution.
Democratic Senate Minority Leader Chuck Schumer called the new agreement Trump’s “get-out-of-jail-free card that he negotiated himself.”
“What kind of man is this?” he told reporters on Tuesday.
