Trump’s $1.7 Billion Payout Plan: A $10 Billion Lawsuit Settlement Exposed

On April 16, 2026, President Donald Trump and Secretary of the Treasury Scott Bessent participated in a roundtable discussion in Las Vegas, Nevada. The event occurred amid escalating scrutiny of Trump’s legal and political maneuvers, including a controversial $10 billion lawsuit against the IRS.

This morning, amid ongoing negotiations with Iran, Trump made a public concession regarding Iran’s nuclear ambitions. Speaking aboard Air Force One while returning from China, he stated that he no longer demanded Iran permanently abandon its nuclear program. Instead, he proposed a 20-year moratorium, emphasizing the need for a "real twenty years" of compliance. Trump remarked,

"Twenty years is enough, but the level of guarantee from them is not enough. In other words, it’s got to be a real twenty years."

Separately, Trump’s $10 billion lawsuit against the IRS—filed over the 2023 leak of his tax returns by contractor Charles Littlejohn—is nearing a settlement. Littlejohn, who was sentenced to five years in prison for the leak, acted independently and not at the IRS’s direction. Despite this, Trump’s lawsuit demands $10 billion in damages, a figure widely considered excessive.

The proposed settlement, reported by ABC News, includes a $1.7 billion fund to compensate allies allegedly targeted by the Biden administration. While the deal is not yet finalized, key details have emerged:

• The fund would be overseen by a commission appointed by Trump, with members serving at his pleasure and removable without cause.
• The commission would not be required to disclose its decision-making process for disbursing funds.
• While Trump himself is barred from receiving payments, entities associated with him are not explicitly prohibited from filing claims.

The arrangement has drawn sharp criticism for its potential for abuse. The IRS has historically argued it is not liable for the actions of independent contractors like Littlejohn. Yet, under Trump’s Treasury Department, the agency appears poised to settle on terms that could funnel billions to his allies. The conflict of interest is glaring: Secretary Bessent, a Trump appointee, would oversee a process benefiting the president’s political network.

This development adds to the growing list of controversies surrounding Trump’s presidency, including his shifting stance on Iran’s nuclear program and the legal fallout from the tax return leak.