Justice Department announces a $1.7B fund to compensate Trump allies in a deal to drop IRS suit

[LetMyPeopleVote]

10. MaddowBlog-Trump moves to withdraw $10 billion lawsuit against IRS amid reports of new 'slush fund'

The president’s civil case against the IRS is likely over. What we don’t yet know is what kind of deal precipitated the withdrawal.

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/trump-moves-to-withdraw-10-billion-lawsuit-irs-slush-fund-reports

In recent weeks, there’s been ample reporting from multiple news organizations that Donald Trump was preparing to withdraw his $10 billion lawsuit against the Internal Revenue Service. We now know those reports were true.

In a court filing made official on Monday morning, the president’s lawyers said their clients, including Trump, his family business and two of his adult sons, are voluntarily dismissing their civil suit.

The court filing, however, did not refer to or disclose any details about a potential settlement with the administration.....

The fund, which would have little oversight, was immediately condemned by congressional Democrats and legal experts as a “slush fund” that would be used to benefit the president’s political allies, including Jan. 6 rioters. These concerns led 93 Democratic lawmakers to file a brief with the judge in this case, arguing Trump is working to “undermine the Constitution” by seeking a settlement from the IRS.

A spokesperson for Trump’s legal team told ABC News last week, “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. President Trump continues to hold those who wrong America and Americans accountable.”

I have been following this "case" and I believe that the so-called lawsuit was void due to a lack of jurisdiction and due to statute of limitations. The federal court hearing the case had amicus briefs filed last week that all take the position that there was no "case or controversy." Without a valid lawsuit, I doubt that this settlement will hold up.