Judge Sanctions Trump IRS Lawyers Over $1.8 Billion Deal, Citing Bad Faith

3 articles · Updated · CNN · Jul 13

A federal judge ordered sanctions against lawyers behind Donald Trump’s IRS lawsuit, saying the case was filed in bad faith to legitimize immunity for Trump allies and a now-defunct $1.776 billion “anti-weaponization” fund.
Kathleen Williams’ 56-page opinion said the Justice Department and Trump’s private counsel tried to manipulate the court, with DOJ officials allegedly abandoning normal litigation positions and pursuing objectives unauthorized—or barred—by law.
Williams sent her opinion to disciplinary boards reviewing acting Attorney General Todd Blanche and Associate Attorney General Stanley Woodward, referred one private lawyer to the Florida Bar, and barred another from Southern District of Florida appearances for 1 year.
The ruling also targets a Blanche memo attached to the settlement that barred IRS scrutiny of Trump, his family and businesses over past tax issues, which Williams said likely violated federal law and could weaken any future attempt to use the deal as a legal shield.
The opinion lands before Blanche’s Senate confirmation hearing this week and follows bipartisan backlash that already killed the fund, while retired judges who challenged the settlement may now recover legal fees.

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CNN1d ago

Judge Sanctions Attorneys in Trump's IRS Lawsuit, Citing "Manipulate Judicial Process" and Bad Faith

news.meaww.com8h ago

Judge accuses Trump of weaponizing courts, says he tried to 'manipulate judicial process'

NBC News8h ago

Judge says Trump administration attempted to 'manipulate the judicial process' with its IRS settlement

A judge voided a secret settlement granting tax amnesty. What does this mean for executive power?

After top government lawyers were sanctioned, what does this ruling mean for legal ethics in public service?

Trump’s $1.8 Billion “Anti-Weaponization” Settlement Voided: Judge Cites DOJ Complicity and Legal Misconduct

Overview

On July 13, 2026, Judge Kathleen M. Williams issued a scathing ruling that nullified a controversial settlement between President Donald Trump and the government, making any prior agreement in the IRS litigation invalid and blocking it as a resolution. While the ruling prevents the original settlement from moving forward, Judge Williams clarified that Trump and the government can still make a private agreement, as long as it is separate from the IRS case. However, she noted that whether such a new agreement would be valid is not for her to decide. This decision marks a major turning point in the ongoing legal dispute.

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