DOJ Creates $1.7B Fund to Compensate Trump Allies, President Drops IRS Lawsuit

The Justice Department on Monday announced the creation of a $1.776 billion "Anti-Weaponization Fund" to compensate people who say they were unfairly investigated or targeted by the Biden administration. The move is part of a settlement agreement in a lawsuit Trump, his two older sons, and the Trump Organization filed against the IRS and Treasury Department over the leak of his tax returns from his first presidency.

Under the settlement, Trump and his co-plaintiffs will receive a formal apology but no money. They also agreed to withdraw two separate administrative claims tied to the Mar-a-Lago raid and the Russia investigation. The lawsuit was dismissed with prejudice, meaning it cannot be refiled.

The fund will be run by five members appointed by the Attorney General and will accept voluntary claims from anyone who believes they were targeted for "political, personal, or ideological reasons," with no partisan requirements to file. It can issue both formal apologies and monetary payments, and must shut down no later than December 1, 2028. Any money remaining when it closes reverts to the federal government.

The $1.776 billion will come from the DOJ's existing judgment fund, a standing appropriation the department already uses to settle cases. Acting Attorney General Todd Blanche said, "The machinery of government should never be weaponized against any American."