President Trump has agreed to withdraw his $10 billion lawsuit against the IRS as part of a settlement that includes a formal apology and the creation of a $1.776 billion federal fund intended to compensate Americans who believe they were unfairly targeted by the government.
The newly created Justice Department initiative, known as the Anti-Weaponization Fund, will allow individuals and organizations to apply for financial compensation if they believe they were subjected to politically motivated treatment by federal authorities. Eligible applicants could include people prosecuted in connection with the Jan. 6 Capitol riot, as well as Hunter Biden, according to a senior administration official who spoke with The Post.
“The point of this isn’t to make every January 6-er a millionaire,” the official said. “The point is to compensate, and to give entitled people back some of their dignity and some of what they lost, including money, whether it’s for legal fees or other costs associated with what they went through.”
Although Trump, Donald Trump Jr., Eric Trump, and the Trump Organization were among the plaintiffs in the lawsuit against the IRS, none of them will be permitted to seek money from the compensation fund. Instead, they will receive an official apology from the federal government.
The agreement announced Monday does not impact Trump’s other legal claims tied to the FBI’s August 2022 search of Mar-a-Lago or allegations involving the FBI’s investigation into supposed ties between Trump’s 2016 presidential campaign and Russia.
After returning to the White House in January 2025, Trump repeatedly pledged to dismantle what he described as the political weaponization of federal agencies. During his second inaugural address, he declared: “Never again will the immense power of the state be weaponized to persecute political opponents — something I know something about.”
The settlement was finalized as both Trump and the Justice Department faced an approaching legal deadline requiring them to explain why the lawsuit against the IRS should continue moving forward.
Officials said applications to the Anti-Weaponization Fund will be evaluated based on several factors, including the merit of the claim, the claimant’s own conduct, legal expenses incurred, and whether the applicant has already received other forms of compensation or relief.
Hunter Biden, who was convicted on federal tax and firearm charges before later receiving a pardon from his father, President Joe Biden, could potentially qualify to seek compensation because of the significant legal bills he accumulated. His legal team is reportedly still pursuing payment for millions of dollars in fees.
“I potentially expect it,” the official said when asked if Hunter Biden could file a claim. “Whether the commissioners will agree with that, and feel like he needs to be compensated, is something that, I think we’ll have to see.”
Administration officials emphasized that eligibility for the program is not restricted based on political affiliation or which administration carried out the alleged misconduct. Both individuals and organizations will be allowed to submit claims.
“We didn’t limit it in that way, because we really viewed it as, and actually this is what the president has said, which is that the Department of Justice was used as a weapon for reasons that are totally wrong, and if Hunter Biden believes that the Department of Justice was used as a weapon against him, he’s allowed to apply.”
The compensation program will be overseen by a six-member board. Five members will be selected by acting Attorney General Todd Blanche, while another appointment will be made after consultation with congressional leadership. The president will retain authority to remove board members at any time.
“The whole point of why we’re doing this is because weaponization comes in many different forms, and having five commissioners, who kind of bring their own unique perspective to how to remedy it, was really our goal,” the administration official said.
According to another senior administration official, Blanche has not yet finalized his appointments to the board, though consultations with House Speaker Mike Johnson and Senate Majority Leader John Thune are expected soon.
The board will have authority to issue apologies, approve financial compensation, or seek additional records and information from both applicants and government agencies before making determinations.
Any approved claims will remain subject to federal transparency laws, including FOIA requirements and government audits, and reports regarding payouts will have to be submitted to the attorney general.
The Anti-Weaponization Fund is scheduled to expire on Dec. 15, 2028. Any money left unused at that point will return to the federal government.
Federal compensation programs of this kind have existed before. In 2010, the Obama administration resolved the Keepseagle v. Vilsack lawsuit involving Native American farmers by creating a $680 million compensation fund and providing as much as $80 million in farm loan debt relief.
Trump and the other plaintiffs filed their lawsuit against the IRS on Jan. 29, accusing the agency of failing to safeguard confidential tax records that were leaked to The New York Times in 2019.
Chaz Littlejohn, a contractor working for the IRS, later admitted to illegally disclosing the tax information. He pleaded guilty to unauthorized disclosure charges and received a five-year prison sentence in January 2024.
Littlejohn was also responsible for leaking tax information belonging to thousands of affluent Americans to ProPublica, prompting additional lawsuits against the federal government from some of those affected.
{Matzav.com}