In a significant move, President Trump has opted to withdraw his hefty $10 billion lawsuit against the Internal Revenue Service (IRS) after reaching an agreement that includes a formal apology and the creation of a substantial compensation fund. This newly established fund, amounting to $1,776,000,000 billion, is designed to support individuals who feel they have been victims of federal government overreach.
The Justice Department’s Anti-Weaponization Fund will be accessible to anyone who believes they have been unfairly targeted by any administration. This includes individuals involved in the events of January 6, 2021, at the Capitol, as well as figures like Hunter Biden, who has faced public scrutiny, according to information shared by a senior administration official with The Post.
The official emphasized that the fund’s purpose is not to create wealth for those involved in the January 6 incident. Rather, it aims to provide rightful compensation, helping individuals reclaim their dignity and cover expenses such as legal fees that arose from their experiences.
While President Trump, along with his sons Don Jr. and Eric, and the Trump Organization, were part of the initial lawsuit against the IRS, they will not receive any financial compensation from this fund. However, they will be granted a formal apology.
This settlement specifically addresses the IRS lawsuit and does not impact President Trump’s other legal pursuits, including claims regarding the FBI’s raid on his Mar-a-Lago estate in August 2022 or the investigation into alleged collusion during his 2016 presidential campaign with the Russian government.
Upon Trump’s return to office in January 2025, he vowed to end the weaponization of the government, saying in his second inaugural addres: “Never again will the immense power of the state be weaponized to persecute political opponents — something I know something about.”
The settlement comes as Trump and the Justice Department faced a deadline this week to justify why the case should proceed.
Among the considerations for restitution from the fund are the strength of the claim, the actions of the claimant, the attorney fees incurred, and to what extent the claimant has already obtained any form of relief.
Hunter Biden was convicted of federal tax and gun charges and later pardoned by his father President Joe Biden. However, the younger Biden accumulated millions in legal fees and the law firm representing him is still seeking payment.
“I potentially expect it,” the official said when asked if Hunter Biden could file a claim. “Whether the commissioners will agree with that, and feel like he needs to be compensated, is something that, I think we’ll have to see.”
The official notes the settlement doesn’t specify that a claimant has to be a Republican or a target of a certain administration. Both individual and entities can apply.
“We didn’t limit it in that way, because we really viewed it as, and actually this is what the president has said, which is that the Department of Justice was used as a weapon for reasons that are totally wrong, and if Hunter Biden believes that the Department of Justice was used as a weapon against him, he’s allowed to apply.”
The fund will have five board members — all of whom are appointed by acting AG Todd Blanche — and one who will be picked in consultation with Congressional leaders. The president can remove board members without cause.
“The whole point of why we’re doing this is because weaponization comes in many different forms, and having five commissioners, who kind of bring their own unique perspective to how to remedy it, was really our goal,” the administration official said.
Blanche has not yet decided on his appointments, according to a senior administration official, with Speaker Mike Johnson (R-La.) and Senate Majority Leader John Thune (R-SD) to be consulted in the days.
The board can issue apologies and monetary relief or request more information, including from the claimant and any relevant agencies.
The claims it approves will be subject to FOIA laws and federal audits and must be reported to the attorney general.
The fund will sunset Dec. 15, 2028, with any remaining money reverting to the federal government.
There is precedent for the establishment of such a fund. In 2010, the Obama administration settled the Keepseagle v. Vilsack class-action lawsuit brought by Native American farmers by establishing a $680 million compensation fund along with granting up to $80 million in farm loan debt forgiveness.
The Trumps filed the lawsuit against the IRS on Jan. 29, charging the government failed to protect their confidential tax returns, which were leaked to the New York Times in 2019.
Chaz Littlejohn, an IRS contractor, pleaded guilty to one count of unauthorized disclosure and was sentenced to five years in prison in January 2024.
Littlejohn also leaked the tax documents of thousands of other wealthy Americans, some of whom have also sued the federal government, to ProPublica.