Former President Donald Trump, along with Donald Trump Jr., Eric Trump, and the Trump Organization, has agreed to drop a $10 billion lawsuit against the Internal Revenue Service (IRS) and the Treasury Department. The lawsuit, filed in January 2026 in the U.S. District Court for the Southern District of Florida, sought damages over leaked tax returns [1].
As part of the settlement announced on May 18, 2026, the Justice Department has established an ‘Anti-Weaponization Fund’ of approximately $1.776 billion. This fund is sourced from the federal Judgment Fund and aims to provide compensation to individuals who claim they were unfairly targeted by the government for political, ideological, or personal reasons [2][3].
The fund will be overseen by a five-member commission appointed by the Attorney General, with one member chosen in consultation with congressional leadership. It will operate until December 15, 2028, and will issue formal apologies and monetary compensation to approved claimants. However, Trump and his family are excluded from receiving any payments from the fund [3][4].
Acting Attorney General Todd Blanche signed the settlement agreement and announced the creation of the fund. The settlement also resolves two additional legal claims filed by Trump, one related to the Mar-a-Lago search and another concerning the federal investigation into Russian interference [5][6].
What Is Known
The lawsuit was initially filed by Trump and his family in response to leaked tax returns, seeking $10 billion in damages [1]. The settlement resulted in the creation of the ‘Anti-Weaponization Fund,’ which will be managed by a commission appointed by the Attorney General [2][3]. The fund is intended to compensate individuals who claim they were unfairly targeted by the government, but Trump and his family are not eligible for compensation [4].
What Remains Unclear
It remains unclear whether the fund will publicly report the identities of recipients or the full details of disbursements [4]. Additionally, it is not confirmed whether any remaining funds at the end of the fund’s operation will revert to the federal government [5].
This article was generated by Bluxle's AI system based on research from multiple news sources. All facts are sourced and cited below. The AI is designed to be neutral and fact-based with no editorial opinion.
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