Trump Drops IRS Lawsuit for $1.8 Billion Fund
Trump and his sons dropped their $10 billion lawsuit against the IRS. In exchange the US Justice Department created a $1.8 billion fund.
The fund will pay people who say they were treated unfairly by the government under President Joe Biden. Trump himself will get no money from the fund.
He will only receive a formal apology. The Trump team called the fund help for victims of government "lawfare." A five-member group chosen by the Attorney General will run the fund.
Trump can remove any member of that group. The fund will take claims until December 2028.
The original lawsuit came after an IRS worker leaked Trump's tax records in 2019 and 2020. Democrats called the fund a "slush fund" for Trump's allies.
Senator Ron Wyden said Trump deserved no credit for dropping the lawsuit. Ethics experts also condemned the fund.
Key Terms 4
- IRS The US government agency that collects taxes
- lawfare Using legal cases as a weapon against political opponents
- slush fund Money critics say is used secretly to reward allies
- ethics experts People who study whether government actions are fair and legal