Donald Trump Plans $1.7 B Compensation Fund to End $10 B IRS Suit

U.S. officials are negotiating a settlement that would see President Donald Trump drop his $10 billion lawsuit against the Internal Revenue Service in exchange for the creation of a $1.776 billion compensation fund. The deal, described by sources as a “Truth and Justice Commission,” would compensate individuals who claim to have been victims of government “weaponization.”

The proposed fund would be open to claimants regardless of party affiliation, including supporters convicted in connection with the Jan. 6 Capitol attack, other MAGA allies, and anyone alleging persecution by the Biden administration. Critics have labeled the arrangement a “slush fund,” warning that it could channel taxpayer money to political loyalists and potentially finance future insurrectionist activities.

Legal experts note significant hurdles: the settlement raises conflict‑of‑interest concerns, and a federal judge in Florida is reviewing whether the case can proceed when the president appears to be both plaintiff and defendant. The controversy has drawn sharp rebuke from Democrats and watchdog groups who argue the plan would misuse public funds for personal and political gain.