DOJ Creates $1.776 Billion Legal Fund as Lawmakers Warn Jan. 6 Rioters Could Benefit
Updated
Updated · Bloomberg · May 27
DOJ Creates $1.776 Billion Legal Fund as Lawmakers Warn Jan. 6 Rioters Could Benefit
2 articles · Updated · Bloomberg · May 27
$1.776 billion will be set aside by the Justice Department to compensate people who say the federal government unfairly targeted them, according to the newly announced plan.
Lawmakers from both parties quickly attacked the fund as a potential taxpayer-financed payout vehicle for Trump allies, with critics warning Jan. 6 rioters could tap it.
The backlash builds on earlier scrutiny of a deal tied to Donald Trump dropping a $10 billion IRS lawsuit in exchange for the same $1.776 billion fund and liability waivers.
That link has intensified concerns that the program could evolve from a broad compensation mechanism into a politically charged test of how the administration uses federal legal settlements.
What precedent does the $1.8 billion IRS settlement set for future presidents and the tax system?
Trump’s $10 Billion IRS Lawsuit Ends with $1.8 Billion Fund and Permanent Audit Immunity: Legal and Constitutional Shockwaves
Overview
In May 2026, President Donald Trump, his two eldest sons, and the Trump Organization settled their $10 billion lawsuit against the IRS, which began after a former IRS contractor leaked Trump’s tax returns and was prosecuted. The settlement created a $1.776 billion Anti-Weaponization Fund and permanently barred the IRS from auditing Trump, his family, or businesses for past tax years. It also included a formal government apology to Trump. These unprecedented terms have sparked major controversy, raising concerns about government accountability, the use of public funds, and the future of oversight and legal checks on powerful officials.