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Government Drops All Tax Claims Against Trump in Expanded IRS Settlement

May 19, 2026

A one-page settlement document posted to the DOJ website on May 19, 2026 reveals the U.S. government is "forever barred and precluded" from examining or prosecuting President Trump, his sons, and the Trump Organization on their current tax issues. The provision dramatically broadens the prior day's IRS lawsuit settlement — going far beyond Trump merely dropping his $10 billion lawsuit against the IRS to the government permanently surrendering its own enforcement rights against Trump's taxes. Democrats called it unprecedented self-dealing; one Republican, Sen. Ron Johnson, backed it.

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Now, he is making his sycophants at the Department of Injustice sell out the American people and funnel billions into a slush fund designed to reward violent January 6 insurrectionists and other loyalists. Instead of using taxpayer dollars to make life more affordable and better for the American people, Donald Trump is abusing his power to corruptly enrich himself, his family and his billionaire friends.

This is beyond the pale. This is bad policy, it's bad timing and it's bad politics. Imagine that — a fund that is set up to compensate people who assaulted Capitol Police officers. The stupid stuff is killing our chances.

I do not support the weaponization fund as it has been described. I do not believe individuals that were convicted of violence against police officers on Jan. 6 should be entitled to reimbursement of their legal fees.

This all seems to be an obvious abuse of power by the Department of Justice, by the president. He negotiated essentially with himself. You're his appointee, the IRS are his appointees, he's the plaintiff.

Yeah, not a big fan. I'm not sure exactly how they intend to use it. But my understanding is that was just announced... I don't see a purpose for that.

People are concerned about paying their mortgage or rent, affording groceries and paying for gas, not about putting together a $1.8 billion fund for the President and his allies to pay whomever they wish with no legal precedent or accountability. This is adding to our national debt. If there needs to be a settlement, the administration should bring it to Congress to decide.

Not only is this another heinously corrupt act by the most corrupt administration in history, it's clearly a violation of the law that prohibits interference by executive branch officials in IRS audits.

He sued the government he runs, had his own DOJ settle the case and pocketed the prize: special IRS protection for the Trump family. That is self-dealing with a government seal.

As working families shorten their grocery lists as they struggle to make ends meet, Donald Trump has added a nearly two-billion-dollar slush fund for his MAGA allies and January 6th insurrectionists to his wish list of pet projects he wants to fund with taxpayer dollars.

Regardless of whether Trump filed this lawsuit with a personal payday or a slush fund in mind, he deserves no credit for dropping it, and even by his standards the move he's trying to get away with now is a stunning act of corruption. What Trump wants is a $1.7 billion slush fund for right-wing political violence and subversion, and if he follows through, it will be the most brazen theft and abuse of taxpayer dollars by any president in American history.

Trump suing the IRS was never about justice, it's another self-enrichment scheme on the backs of hard-working taxpayers. Trump is scrambling to cut a backroom deal and solidify his position as the judge, jury, and executioner.

Donald Trump's absurd $10 billion lawsuit against the IRS is one of the most brazen examples of corruption we've seen from this administration. House Democrats are taking a stand for the American taxpayers that would be forced to foot the bill for this mess, and are calling on the court to block any unconstitutional settlements in the matter.

First, Donald Trump sues his own IRS to enrich himself. Now he wants to use billions in taxpayer funds to compensate his allies, including thousands charged for the January 6 insurrection. This is easily the most corrupt regime in U.S. history.