Department of Justice proposes $1.776 billion in ‘legal fees’ funding to resolve Trump’s IRS lawsuit
The Justice Department has offered a $1.776 billion settlement after President Donald Trump dropped a $10 billion IRS lawsuit.
WASHINGTON – Critics of President Donald Trump are furious after the Justice Department announced a $1.776 billion fund to compensate the president’s allies who say they were unfairly targeted by the federal government, including those who stormed the U.S. Capitol on Jan. 6, 2021.
They say it was brazen enough that President Trump used his executive powers to pardon or commute the sentences of about 1,500 defendants on the first day of his second term on Jan. 6, before issuing dozens of pardons to wealthy and well-connected people accused of fraud and other white-collar crimes.
But now the Justice Department, led by Acting Attorney General Todd Blanche, who once served as the president’s personal lawyer, plans to use tax dollars to pay out “victims of legal battles and weapons use,” which could include participants in the Jan. 6 riot and other Trump supporters who say they were treated unfairly under Democratic administrations.
Sen. Chris Van Hollen, D-Maryland, questioned Branch during a Senate Appropriations Committee hearing on May 19, denouncing the deal as “pure theft of public funds.”
“It’s despicable to reward individuals who commit crimes,” Van Hollen said. “Every American can see through this illegal and corrupt self-dealing scheme.”
President Trump says Justice Department fund will ‘reimburse’ abused people
The fund was established in response to longstanding Republican accusations that the Biden and Obama administrations “weaponized” the Justice Department to go after President Trump, his companies and supporters.
Blanche announced the fund on May 18 as part of a settlement agreement in a lawsuit filed by Trump and his family against the Internal Revenue Service seeking $10 billion in damages over the leak of the president’s tax returns. In exchange for the creation of the fund, the Trump family agreed to voluntarily drop the lawsuit. That means federal judges won’t rule on the merits of the case.
President Trump told reporters on May 18 that he knew “very little” about the fund, but said it was “very popular.”
Asked by reporters about the dollars that could go to the Jan. 6 defendants, President Trump said, “This is reparations for people who have been treated badly.” “They were armed, in some cases wrongly imprisoned, paid legal fees they didn’t pay, went bankrupt. Their lives were destroyed. And it turns out they were right. It was a terrible time in our nation’s history.”
The agreement with the IRS also includes assurances that the tax agency will no longer pursue any tax liability claims it may have against Mr. Trump, his family, or his companies.
Before infuriating Democrats on the Senate Appropriations Committee, Blanche defended the “anti-weaponization” fund, stressing that recipients are “not limited to Republicans” and “not limited to Biden’s weaponization.” It added that they are not limited to the January 6 defendants.
Asked by Van Hollen whether defendants who were convicted of assaulting a police officer on Jan. 6 would be eligible, Blanche said, “Anyone in this country is eligible to apply if they believe they have been the victim of a weapons attack.”
Blanche to appoint committee to manage funds
A five-member committee, each appointed by Mr. Blanche, will be responsible for deciding which claimants will receive awards from the fund, the Justice Department said. The one-page agreement signed by Blanche states that the federal government is “not responsible” for potential misuse by those who receive the funds after they are allocated.
Blanche acknowledged that the new funds are “unusual” but “not unprecedented,” pointing to the Obama administration’s 2011 settlement with Native American farmers in Keepsigle v. Vilsack, which sued the USDA alleging decades of discrimination in accessing federal aid.
By contrast, in its settlement approved by a federal judge, the Justice Department set aside $760 million to relieve farmers’ discrimination claims.
Addressing reporters at a White House press briefing, Vice President J.D. Vance did not rule out the possibility that the funds would go to the Jan. 6 defendants, saying the committee would review individuals who applied for the funds on a “case-by-case basis.”
“Let’s say someone was accused of doing something they didn’t actually do, and they went through a ‘kangaroo court.’ They had a judge who mistreated them. I think these things should be looked at on a case-by-case basis,” Vance said. “We’re not making any promises to give anyone money.”
Democrats allege ‘slush fund’ used to enrich President Trump’s friends
Vance said the purpose of the fund is to “compensate Americans for the legal actions we saw under the previous administration.”
“Anyone can apply,” Vance said, noting that Trump has also granted pardons to some Democrats. “So if Hunter Biden wants to apply to this special fund, he’s welcome.”
Meanwhile, Democrats have signaled plans to take control of the Anti-Weaponization Fund ahead of the 2026 midterm elections, as affordability concerns and rising gas prices plague President Trump and Republicans.
“Instead of helping Americans live their lives, President Trump is literally using taxpayer dollars to set up slush funds and enrich his friends,” said Washington Democratic Sen. Patty Murray. “Let me be clear: What we are talking about is nothing less than a sitting President of the United States looting the Treasury for his own benefit.”
Contributor: Josh Meyer for USA TODAY
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