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Trump drops IRS lawsuit, sets up $1.7bn US anti-weaponisation fund

Trump drops IRS lawsuit, sets up $1.7bn US anti-weaponisation fund

Summary

President Donald Trump has dropped his $10 billion lawsuit against the IRS over leaked tax returns. His administration will create a $1.77 billion fund to compensate some of his political allies who were allegedly targeted unfairly by law enforcement.

Key Facts

  • President Trump withdrew a $10 billion lawsuit against the IRS related to leaked tax returns.
  • The lawsuit concerned leaks made by a former IRS contractor, Charles Littlejohn, who disclosed Trump’s tax returns to the media in 2019-2020.
  • Littlejohn pleaded guilty and received a five-year prison sentence for improper disclosures.
  • The U.S. Department of Justice announced a $1.77 billion "Anti-Weaponisation Fund" to compensate people who claim they were unfairly targeted by law enforcement ("weaponisation" and "lawfare").
  • The fund is part of the settlement agreement related to the dropped lawsuit.
  • President Trump and his family argued the IRS did not do enough to stop the leaks.
  • Some politicians criticized the fund, calling it unfair and a misuse of taxpayer money.
  • It is unclear who specifically will receive money from the fund or how it will be distributed.
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