Trump Drops $10B IRS Lawsuit, Redirects Funds to $1.7B 'Weaponization' Program

Donald Trump is dropping his $10 billion lawsuit against the IRS over the 2019 leaking of his tax returns. In its place, he is directing the IRS to establish a $1.7 billion “weaponization” fund to distribute taxpayer money to his supporters who claim they were wrongfully targeted by the Biden administration—including January 6th insurrectionists.

“The IRS wrongly allowed a rogue, politically-motivated employee to leak private and confidential information about President Trump, his family, and the Trump Organization to The New York Times, ProPublica, and other left-wing news outlets, which was then illegally released to millions of people,” an attorney for the president wrote in a statement.

“President Trump continues to hold those who wrong America and Americans accountable.”

“It’s interesting because I’m the one that makes a decision, right, and, you know, that decision would have to go across my desk. It’s awfully strange to make a decision where I’m paying myself.”

Trump acknowledged in late 2023 that the lawsuit appeared problematic. “It sort of looks bad,” he stated candidly during a public appearance.

While dropping the lawsuit prevents Trump from directly using the IRS to pay himself, critics argue the new $1.7 billion fund still offers avenues for personal enrichment. Trump’s super PAC could apply for the fund, as could far-right groups like the January 6th insurrectionists. Additionally, Trump retains the power to appoint and remove members of the weaponization committee without oversight, shaping the fund to align with his interests.

Senator Elizabeth Warren condemned the move on X (formerly Twitter) on Thursday, stating:

“An insane level of corruption—even for Trump. A $1.7 BILLION slush fund for Trump’s hand-picked stooges to hand money to January 6th insurrectionists and his political allies. Here’s the President’s priority as Americans sell their plasma to afford gas and groceries.”