President Donald Trump formally dropped his $10 billion lawsuit against the Internal Revenue Service on Monday as part of a settlement that creates a fund that may compensate some of his political allies.
As part of the settlement, the Justice Department will administer a nearly $1.8 billion “Anti-Weaponization Fund” that could benefit, among others, people who were convicted of participating in the Jan. 6, 2021, assault on the U.S. Capitol.
The lawsuit, which centered on the 2019 leak of documents concerning Trump’s tax returns, was dismissed “with prejudice,” meaning Trump cannot renew similar claims in another civil complaint.
Anti-Weaponization Fund
The anti-weaponization fund comes from a permanent appropriation that covers claims against the federal government.
According to the Justice Department, the fund will “provide a systematic process to hear and redress claims of others who suffered weaponization and lawfare.”
“As part of this settlement, we are setting up a lawful process for victims of lawfare and weaponization to be heard and seek redress,” said Acting Attorney General Todd Blanche.
The Anti-Weaponization Fund will allow the department to issue formal apologies and monetary relief to victims of “weaponization and lawfare,” with claimants submitting claims voluntarily.
It will operate through Dec. 15, 2028, and any leftover funds would be returned to the federal government, according to the DOJ.
As for how the claims will be processed, the DOJ says the fund will consist of five commission members appointed by the attorney general. One will be chosen in consultation with Congress, and the president will have the authority to remove any member.
Lawmaker hesitancy
The news comes after reports of the fund circulated through the media earlier this month.
Officials within the administration previously expressed concerns about using taxpayer money to pay political allies and supporters, with Democratic members of Congress calling the fund a “slush fund.”
The new fund continues Trump’s long history of claims that the Biden administration Justice Department was weaponized against him.