Trump Officials Are Reportedly Discussing Whether To Pay Trump a Settlement in IRS Lawsuit

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21. MaddowBlog-Democrats condemn 'slush fund' as Trump eyes possible settlement with the IRS

Sen. Elizabeth Warren characterized the purported deal as an “insane level of corruption — even for Trump.”

A year ago, Trump endorsed a “compensation fund” for Jan. 6 rioters, though it wasn’t clear where he expected to get the money.

Now we know: He’d get it from us, in the form of a settlement agreement that results in a giant pool of money his team could use to reward his allies without oversight.

— Steve Benen (@stevebenen.com) 2026-05-15T17:42:13.603Z

https://www.ms.now/rachel-maddow-show/maddowblog/democrats-condemn-slush-fund-as-trump-eyes-possible-settlement-with-the-irs

More than three months later, as settlement talks between the agency and the Republican’s lawyers continue, money for “charity” doesn’t appear to be the principal goal. ABC News reported:

President Donald Trump is expected to drop his $10 billion lawsuit against the Internal Revenue Service in exchange for the creation of a $1.7 billion fund to compensate allies who claim they were wrongfully targeted by the Biden administration, sources familiar with the matter told ABC News.

The commission overseeing the compensation fund would have the total authority to hand out approximately $1.7 billion in taxpayer funds to settle claims brought by anyone who alleges they were harmed by the Biden administration’s “weaponization” of the legal system, including the nearly 1,600 individuals charged in connection with the Jan. 6 Capitol attack as well as potentially entities associated with President Trump himself.

....Rep. Jamie Raskin of Maryland, the top Democrat on the House Judiciary Committee, issued a related statement, saying, “Donald Trump is orchestrating a $1,700,000,000 fraud on the American taxpayer to line the pockets of his MAGA political allies, another installment in his ongoing effort to turn the federal government into a personal cash machine for his unpopular extremist movement. This is a massive and unprecedented presidential plunder of the American people.”

Raskin’s statement went on, “The President has no authority to conjure up billion-dollar compensation schemes or raid the Judgment Fund which exists to settle valid lawsuits. Trump is systematically converting neutral government mechanisms into a presidential slush fund to build his army of political dependents. … This is a giant affront to the rule of law and a danger to the American system of justice.”

It’s easy to forget, but just two months into his second term, the president endorsed the idea of a possible “compensation fund” for rioters who attacked the U.S. Capitol in his name. Trump didn’t elaborate on the details, but taken at face value, he appeared to describe what would effectively be financial rewards for the criminals he pardoned.

It wasn’t clear at the time where exactly he expected to get the money. Fourteen months later, the answer appears to be coming into focus: Trump would get the money from taxpayers, in the form of a settlement agreement that results in a giant pool of money his team could use to reward his allies. Watch this space.

The only way to do this settlement is to have a valid lawsuit or court action. This lawsuit will be dismissed because of (a) statute of limitations and (b) the lack of judicial jurisdiction due to there being no "case or controversy."