The Department of Justice (DOJ) has decided not to proceed with a proposed $1.8 billion anti-weaponization compensation fund intended to settle a lawsuit filed by former President Donald Trump against the Internal Revenue Service (IRS), according to acting Attorney General Todd Blanche's testimony before a House panel on Tuesday.
Blanche stated that Trump, his family, and associated business entities will continue to be protected from tax audits and enforcement actions related to tax returns submitted prior to a recent out-of-court settlement of the lawsuit. He confirmed that he signed an addendum to the settlement on May 19, which provides this protection.
The addendum also prevents the DOJ from prosecuting Trump and his family for actions that may be categorized as "Lawfare and/or Weaponization," although these terms are not clearly defined.
During the hearing, Blanche informed Rep. Grace Meng (D-N.Y.) that the DOJ would not move forward with the fund, which had been temporarily blocked by a federal judge amid ongoing lawsuits challenging its establishment. Critics, including some Republican senators, expressed concerns about the fund's lack of legislative oversight and its potential to compensate individuals convicted of offenses related to the January 6, 2021, Capitol attack.
Rep. Rosa DeLauro (D-Conn.) criticized the addendum, claiming it effectively grants Trump and his family tax immunity worth approximately $100 million. Blanche countered that the settlement is standard practice in IRS negotiations and does not provide future immunity.
Sen. Bill Cassidy (R-La.) expressed skepticism about the finality of the decision regarding the weaponization fund during a separate event at the CNBC CEO Council Summit.
