Donald Trump IRS Settlement Sparks Nationwide Legal Backlash

A coalition of 23 state attorneys general, led by Virginia and California, filed a brief urging a Florida federal judge to scrutinize a settlement that grants former President Donald Trump, his family and related businesses broad protection from future IRS investigations. The agreement, reached in May, includes a $1.776 billion “Anti‑Weaponization Fund” intended to address alleged government abuse of tax enforcement.

U.S. District Judge Kathleen M. Williams ordered attorneys to stop filing briefs, calling the case “sufficiently briefed” and effectively ending the fund. Former federal judges, former IRS officials and numerous state attorneys general called the deal a “fraud on the court” and a “corrupt effort to defile the court itself,” arguing it creates a separate tax code for Trump’s family. While the fund has been halted, an addendum signed by Acting Attorney General Todd Blanche continues to bar the IRS from investigating Trump, his family and affiliated businesses for taxes filed before May 18, 2026.