The Trump administration has established a nearly $1.8 billion fund to compensate political allies, drawing from a settlement of a lawsuit the president filed personally against the IRS, an agency under his executive control.
The arrangement stems from Trump's $10 billion suit against the IRS over the leak of tax return documents to the press. To resolve the dispute, the Department of Justice agreed to create what officials call the "Anti-Weaponization Fund," which will issue formal apologies and financial awards to conservative figures claiming mistreatment by previous administrations.
The fund operates with minimal oversight. Four commissioners will be appointed by Trump's attorney general, with one additional commissioner selected "in consultation" with congressional leadership. Trump retains the power to fire commissioners, giving him effective control over fund distribution. No public reporting requirement exists for the fund's activities, and confidential reports to the attorney general will not be disclosed. When Trump leaves office, any remaining balance reverts to the federal government rather than becoming available to his successor.
The settlement also requires the IRS to discontinue all audits of Trump and his family members.
A federal judge previously raised concerns about the lawsuit's legitimacy, noting that Trump controlled both the plaintiff and defendant in the case, with IRS lawyers representing the agency through the Department of Justice, which Trump also oversees. An independent review panel commissioned by the judge concluded there was "reason to believe that the president is, in fact, exercising his control over the defendants in this litigation." The settlement came just before a May 20 deadline the judge had imposed for parties to explain their actual conflict.
Acting Attorney General Todd Blanche defended the arrangement, saying that "the machinery of government should never be weaponized against any American."
The fund's structure raises questions about accountability. Members of the Trump administration have not ruled out January 6 insurrectionists as potential recipients, according to reporting. The Guardian described the fund as "loosely controlled and secretive."
The arrangement reflects what critics view as a broader pattern. Trump's second term has featured numerous instances of officials using their positions for personal financial gain, with the regulatory and purchasing power of the federal government increasingly directed toward administration allies and those willing to participate in such arrangements.
The compensation exceeds typical legal settlements for the alleged injuries involved. The outsized figure has drawn scrutiny from those who argue it amounts to a distribution mechanism for public funds to Trump's political network.
Author James Rodriguez: "When a president can sue an agency he controls, have it defended by lawyers he controls, and then collect a settlement that enriches his allies with public money, the separation of powers hasn't just eroded, it's vanished."
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