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Trump Drops IRS Suit as DOJ Sets Up $1.776 Billion 'Anti-Weaponization' Fund

The move concentrates payout power inside the Justice Department, triggering conflict-of-interest and constitutional challenges.

Overview

  • President Trump dismissed his $10 billion IRS suit as the Justice Department, in a Monday announcement, created a $1.776 billion Anti-Weaponization Fund and said he will get a formal apology but no payout.
  • A five-member commission appointed by Acting Attorney General Todd Blanche will run the fund, with one member chosen in consultation with congressional leaders and members removable by the president.
  • Blanche’s memo directs Treasury to move the money within 60 days, requires quarterly reports to the attorney general, and sets a Dec. 15, 2028 cutoff with unused funds returning to the government.
  • In Senate testimony Tuesday, Blanche released an addendum barring the IRS from pursuing back tax claims against Trump, his family, or his companies.
  • Eligibility is open to anyone claiming unfair prosecution, potentially including January 6 defendants, as nearly 100 House Democrats move to challenge the plan and critics warn the Judgment Fund route gives the executive branch sweeping discretion.