Justice Department announces a $1.7B fund to compensate Trump allies in a deal to drop IRS suit [View all]

Source: AP

Updated 11:53 AM EDT, May 18, 2026


WASHINGTON (AP) -- The Trump administration on Monday announced the creation a $1.7 billion fund to compensate allies of the Republican president who believe they were mistreated by the Biden administration Justice Department.

The "Anti-Weaponization Fund" was announced by the Justice Department as part of a deal to resolve President Donald Trump's lawsuit against the Internal Revenue Service over the leak of his tax returns. Acting Attorney General Todd Blanche said in announcing the fund in a statement that it was "a lawful process for victims of lawfare and weaponization to be heard and seek redress."

Democrats and government watchdogs immediately pledged to fight what they called a "corrupt" and unprecedented resolution, warning that the arrangement would unjustly enrich people close to the president with taxpayer dollars and open the door to meritless claims of political persecution.

Trump's lawyers disclosed the dismissal of the case in a filing Monday in federal court in Florida, where the president sued earlier this year. The fund would represent not only a highly unorthodox resolution but also a further demonstration of the administration's eagerness to reward allies who before Trump came to power were investigated and in some cases charged and convicted.

Read more: https://apnews.com/article/trump-lawsuit-irs-leak-3729de38770b558be01712a143437bf8