Trump Drops IRS Suit for $1.8 Billion Fund as Blanche Claims Broad Immunity
Updated
Updated · The New York Times · May 20
Trump Drops IRS Suit for $1.8 Billion Fund as Blanche Claims Broad Immunity
6 articles · Updated · The New York Times · May 20
A day after Trump abandoned his $10 billion lawsuit against the IRS, his administration agreed to create a $1.8 billion fund that the report says would be distributed to his political allies.
Todd Blanche — Trump’s former lawyer now serving as acting attorney general — then issued an addendum saying the U.S. government is “forever barred” from pursuing claims tied to alleged “lawfare,” including tax-return matters.
Legal experts said the arrangement pushes constitutional boundaries by letting a president extract money from his own government while also trying to block future claims against himself.
Those critics warned the move could undercut Congress’s control of federal spending and limit courts’ ability to enforce separation-of-powers constraints.
The immunity language also revives the unresolved question of whether a president can effectively shield himself from legal liability in a way akin to self-pardoning.
If a president can gain immunity from lawsuits, what mechanisms remain to ensure executive accountability under the law?
Trump Settlement 2026: $1.8 Billion "Anti-Weaponization Fund" and Permanent IRS Immunity Ignite Legal and Ethical Firestorm
Overview
On May 20, 2026, a landmark settlement was reached between the U.S. government and former President Donald Trump, ending a major lawsuit Trump and his family filed against the IRS and Treasury Department over alleged failures to protect confidential tax information. The agreement grants Trump a formal government apology but no monetary compensation. However, the lack of transparency from the Justice Department, Treasury, and IRS about the settlement’s details has sparked immediate controversy and criticism. This silence from key agencies has fueled public suspicion and debate about the motivations and implications behind the deal.