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Trump poised to drop IRS suit, launch $1.7B 'weaponization' fund for allies: Sources

Trump poised to drop IRS suit, launch $1.7B 'weaponization' fund for allies: Sources

Summary

President Donald Trump is expected to drop his $10 billion lawsuit against the IRS in return for creating a $1.7 billion fund to pay people who say they were unfairly targeted by the Biden administration. A commission, controlled in part by Trump, would decide how the money is given out, including to those involved in the January 6 Capitol attack.

Key Facts

  • Trump plans to end his $10 billion lawsuit against the IRS over leaked tax returns.
  • In exchange, a $1.7 billion fund would be set up to compensate people who claim unfair treatment by the Biden administration.
  • The fund could include about 1,600 individuals charged after the January 6 Capitol attack.
  • Trump would not receive money directly from the fund, but groups linked to him might apply for payments.
  • Trump would have the power to remove commission members who manage the fund without giving a reason.
  • The fund would use taxpayer money from the Treasury Department's Judgment Fund.
  • The commission is not required to report how it decides who gets money.
  • Some officials have raised ethical concerns about Trump controlling a fund distributing large government payouts.
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