ABC News<\/a>, a newly created commission would oversee roughly $1.7 billion in taxpayer-funded payouts to individuals and organizations alleging they were victims of what Trump and his supporters have long described as the \u201cweaponization\u201d of the federal government.<\/p>\n\n\n\nThat pool of money could benefit nearly 1,600 people charged in connection with the Jan. 6 Capitol riot, along with other Trump allies \u2014 and potentially entities tied to the president himself.<\/p>\n\n\n\n
The deal is not yet finalized, according to ABC News, but sources familiar with the negotiations said the compensation fund is \u201cthe main condition\u201d for Trump dropping several major legal claims against the federal government.<\/p>\n\n\n\n
Trump filed the IRS lawsuit in January after his confidential tax returns were leaked to the media during his first term.<\/p>\n\n\n\n
The breach stemmed from the actions of Charles Littlejohn, a former IRS contractor employed by Booz Allen, who admitted to illegally disclosing Trump\u2019s tax information to news outlets including The New York Times and ProPublica.<\/p>\n\n\n\n
The leaked records fueled headlines in 2020 claiming Trump paid just $750 in federal income taxes in both 2016 and 2017.<\/p>\n\n\n\n
Littlejohn later pleaded guilty to unauthorized disclosure of tax returns and was sentenced in 2024 to the maximum penalty of five years in prison.<\/p>\n\n\n\n
Trump\u2019s sons, Donald Trump Jr. and Eric Trump, who now oversee the Trump Organization, also filed related lawsuits tied to the disclosures.<\/p>\n\n\n\n
According to ABC News, the proposed settlement would establish a commission with broad authority to distribute compensation to people claiming they were politically targeted under President Joe Biden\u2019s administration.<\/p>\n\n\n\n
\n\u201cPresident Donald Trump is expected to drop his $10 billion lawsuit against the Internal Revenue Service in exchange for the creation of a $1.7 billion fund to compensate allies who claim they were wrongfully targeted by the Biden administration, sources familiar with the matter told ABC News,\u201d the outlet reported.<\/p>\n\n\n\n
\u201cThe commission overseeing the compensation fund would have the total authority to hand out approximately $1.7 billion in taxpayer funds to settle claims brought by anyone who alleges they were harmed by the Biden administration\u2019s \u2018weaponization\u2019 of the legal system, including the nearly 1,600 individuals charged in connection with the Jan. 6 Capitol attack as well as potentially entities associated with President Trump himself.\u201d<\/p>\n<\/blockquote>\n\n\n\n
Shortly after returning to office on Jan. 20, 2025, Trump issued sweeping pardons to nearly every defendant charged or convicted in connection with the Capitol riot.<\/p>\n\n\n\n
The IRS case is not the only legal dispute Trump is currently pursuing against the federal government.<\/p>\n\n\n\n
The president is also seeking $230 million from the Department of Justice over the FBI\u2019s Russia investigation into his 2016 campaign and the bureau\u2019s 2022 raid on his Mar-a-Lago residence.<\/p>\n\n\n\n
Rather than filing a lawsuit in that matter, Trump submitted administrative claims that will ultimately be reviewed by officials within his own administration.<\/p>\n\n\n\n
ABC News reported that the proposed settlement would block Trump personally from receiving payments tied directly to the IRS, Russia investigation, or Mar-a-Lago claims.<\/p>\n\n\n\n
However, the outlet noted that \u201centities associated with Trump are not explicitly barred from filing additional claims.\u201d<\/p>\n\n\n\n
In a statement to ABC News, a spokesperson for Trump\u2019s legal team defended the president\u2019s position and blasted the original leak.<\/p>\n\n\n\n
\n\u201cThe IRS wrongly allowed a rogue, politically-motivated employee to leak private and confidential information about President Trump, his family, and the Trump Organization to the New York Times, ProPublica and other left-wing news outlets, which was then illegally released to millions of people,\u201d the spokesperson said.<\/p>\n\n\n\n
\u201cPresident Trump continues to hold those who wrong America and Americans accountable.\u201d<\/p>\n<\/blockquote>\n\n\n\n