Trump May Drop $10 Billion IRS Lawsuit for $1.7 Billion Compensation Fund

May 16, 2026 - 17:00
Updated: 16 days ago
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Trump May Drop $10 Billion IRS Lawsuit for $1.7 Billion Compensation Fund
Photo source: https://www.theguardian.com/us-news/2026/may/17/trump-news-a...

Donald Trump may agree to drop his $10 billion lawsuit against the Internal Revenue Service in exchange for the launch of a $1.7 billion fund to compensate people he says were wrongfully targeted by the Biden administration, according to reports.

The case is the latest example of how Trump has taken over the Justice Department, which typically operates at arm’s length from the White House, and deployed it for his own ends.

Among other people, more than 1,500 January 6 rioters would be eligible to receive compensation from the fund, ABC said. The Treasury Department’s Judgment Fund, a pool of taxpayer funds reserved to pay out court judgments and settlements, would allegedly become the vehicle for Trump’s self-styled victim compensation fund.

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