Trump Administration Creates $1.776 Billion Fund for Claims of Government Weaponization

President Trump reached a settlement this week that ends his $10 billion lawsuit against the Internal Revenue Service and creates a $1.776 billion fund for people who claim they were victims of government weaponization. The Justice Department announced the Anti-Weaponization Fund on Monday as part of the agreement.

Acting Attorney General Todd Blanche said the fund will provide a process to hear and redress claims of lawfare and weaponization.

Trump filed the suit in January against the IRS and Treasury Department. He alleged that an IRS contractor leaked his tax returns and those of his sons and company to The New York Times in 2020. The contractor, Charles Littlejohn, was sentenced to five years in prison for the disclosure.

Trump sought $10 billion in damages, claiming the agencies failed to protect his confidential information. The presiding judge questioned whether the case could proceed because Trump, as president, effectively controlled both sides of the litigation.

The settlement draws $1.776 billion from the federal Judgment Fund, which is financed by taxpayer money. The fund will be administered by a five-member board appointed by the attorney general. Claims must be submitted by December 2028 and all funds disbursed by January 1, 2029.

The agreement also permanently bars the IRS from pursuing claims against Trump or his company based on prior tax returns. Retired U.S. Capitol Police officer Harry Dunn and Metropolitan Police Department officer Daniel Hodges argue the fund is illegal.

The officers claim the fund will reward individuals convicted of assaulting law enforcement during the Capitol riot. Their complaint states the fund's existence sends a message that violence in Trump's name will be rewarded. Treasury Department general counsel Brian Morrissey resigned hours after the fund was announced.

The settlement also resolves additional administrative claims Trump had against the Justice Department. The Justice Department said the fund will stop processing claims no later than December 1, 2028.