Trump Proposes $1.7 Billion Slush Fund for Political Allies in $10B IRS Lawsuit Settlement

President Donald Trump is reportedly preparing to drop his $10 billion lawsuit against the Internal Revenue Service (IRS) as part of a settlement that critics call one of his most corrupt schemes to date. The agreement would establish a new $1.7 billion fund to compensate political allies allegedly harmed by the Biden administration’s alleged “weaponization” of the legal system.

According to ABC News, the settlement includes the creation of a commission with total authority to settle claims brought by those who allege such weaponization. This could extend to individuals involved in the January 6 Capitol riot and even entities associated with President Trump himself.

The proposed commission would operate with little-to-no congressional oversight, raising serious constitutional concerns.

“This is a shocking new betrayal of the Constitution,”

The lawsuit stems from an unauthorized leak of Trump’s tax returns during his first term, which he sued the IRS over in January, demanding $10 billion in damages. Legal experts argue the lawsuit lacks merit, as Timothy Noah of The New Republic has noted, calling it an attempt to use government resources to enrich Trump and his allies.

Recent reports indicate that the White House has engaged in negotiations with the U.S. Department of Justice (DOJ)—the agency theoretically tasked with defending the government against the lawsuit. Since Trump effectively controls the DOJ, he would be negotiating a settlement with an entity he oversees, directing taxpayer funds to himself, his associates, or favored causes.

The new MAGA slush fund would draw from the Treasury Department’s Judgment Fund, typically used to pay court judgments and settlements. However, under the proposed settlement, Trump would wield quasi-direct control over the fund’s disbursement.

Sources tell ABC News that the commission overseeing the fund would consist of five members, with monetary awards decided by majority vote. Crucially, the process for awarding funds and the identities of recipients could remain private. Even more concerning, Trump would have the power to remove commission members without cause.

In summary, the DOJ—under Trump’s influence—is negotiating a settlement that would create a $1.7 billion fund overseen by a secretive commission, allowing Trump to distribute taxpayer money with no transparency and fire members at will.