Donald Trump tax claims dropped amid criticism of Treasury slush fund

The US government agreed to drop tax claims against former President Donald Trump as part of a broader settlement of an IRS lawsuit. The decision was announced alongside criticism from Democratic lawmakers and ethics watchdogs, who described a Treasury‑fund created for Trump allies as a potential "slush fund" lacking transparency.

Republican Representative Jim Vance amplified the controversy, calling the fund "theft" and claiming that about $1 billion had been taken from the Treasury. The settlement and the fund’s existence have raised concerns about possible misuse of taxpayer money and the integrity of the tax‑enforcement process.