Trump Drops IRS Lawsuit to Establish $1.7 Billion Anti-Weaponization Fund

US President Donald Trump has withdrawn a $10 billion lawsuit against the Internal Revenue Service (IRS) related to a leak of his tax returns. As part of the settlement agreement, Trump’s administration will establish a new fund worth $1.77 billion, known as the Anti-Weaponisation Fund.

The Department of Justice announced the creation of the fund on Monday, stating that it would provide a systematic process for hearing and redressing claims from individuals who suffered from weaponisation and lawfare. The terms of the deal remain undisclosed.

Trump, along with his adult sons Donald Trump Jr and Eric Trump, and the Trump Organization, initially sued the IRS in January over allegations that the agency failed to prevent a former contractor from disclosing their tax returns to media outlets during Trump’s first term. The case centered on Charles Littlejohn’s leak of Trump’s tax returns to various news organizations in 2019 and 2020.

Prosecutors charged Littlejohn with leaking tax records, including those of Trump and thousands of other wealthy Americans, citing a political agenda. Littlejohn later pleaded guilty to improper disclosures and was sentenced to five years in prison.

The court filing did not disclose the terms of any potential deal, but news of the fund sparked backlash from Democrats and government watchdog groups. Representative Jamie Raskin criticized the idea as “unconstitutional,” stating that Trump’s allies should bring their claims through the regular legal process rather than relying on a special fund.

California Governor Gavin Newsom also expressed opposition to the plan, calling it an “outrage” that American taxpayers would be funding the settlement. Representative Pramila Jayapal echoed similar sentiments, stating that the plan was an example of Trump’s “open corruption.”

Source: Al Jazeera