INV-036 · Money & ethics · Misuse of public funds
Trump's $10B suit against his own IRS and the $1.776B fund
Stage 4 of 5: Legal action · Lawsuits, subpoenas, charges · Last development 29 Sep 2026
Trump, two sons and the Trump Organization sued the IRS and Treasury, agencies he directs, for $10 billion over the 2019-2020 leak of his tax returns. The Justice Department settled: no money to the Trumps, but a $1.776 billion taxpayer-funded "Anti-Weaponization Fund" for people claiming they were targeted by the government, plus a bar on pursuing tax claims against the Trumps and their companies. A federal judge in Virginia blocked the fund; the administration then said it was dropped. The Miami judge found the lawsuit collusive, voided the settlement's use as a court resolution and sanctioned Trump's lawyers. Trump has appealed.
The judge's collusion finding is under appeal; an appeals panel declined to pause it on 29 Sep 2026 but said its ruling is preliminary. The tax-claims bar for the Trumps is reported to remain in force; its current status should be rechecked before publishing.
- People
- Donald Trump, Todd Blanche, Eric Trump, Donald Trump Jr., Trump Organization
- Agencies
- Justice Dept, Treasury Dept
- Reviewed by
- Federal court (S.D. Fla.), Federal court (E.D. Va.), Federal court (D.D.C.), 11th Circuit
Money involved
- $1.78 billion Taxpayer-funded "Anti-Weaponization Fund" (blocked) (Taxpayer money in questioned contracts, loans and funds) [1]
Timeline
An 11th Circuit panel (Jordan, Rosenbaum, Newsom) refuses to pause the sanctions, saying the appellants "have not made a strong showing that the district court committed clear error in its collusion and bad faith findings." [6]
Acting Attorney General Blanche issues a formal order rescinding the $1.776 billion fund, which "is rescinded and shall have no force or effect," after Sens. Cornyn and Tillis made it a condition of supporting his nomination. The settlement's audit protections for the Trumps remain for past tax returns. [7]
The Trumps file notice of appeal. Trump says the fund is dead but "I wish it weren't." Sens. Cornyn and Tillis tie Blanche's attorney general confirmation to permanently shutting the fund and narrowing the audit protection. [5]
Judge Kathleen Williams (S.D. Fla.) rules the suit was an "attempt to use the Court to provide some legitimacy to an agreement to confer immunity to people and entities affiliated with the President and to earmark billions of dollars from American taxpayers". She bars the parties from calling the deal a settlement of the case and refers Trump lawyer Alejandro Brito and the DOJ officials who signed off to bar authorities. [4]
Brinkema grants a preliminary injunction blocking the fund indefinitely and orders sworn declarations from Blanche and Treasury Secretary Bessent that it will not proceed. Judge Richard Leon (D.D.C.) denies CREW's separate request, warning DOJ: "Don't play possum with this court." [2]
Blanche tells a House appropriations subcommittee DOJ is "not moving forward with the fund, period"; the next day Trump says "I don't know" whether it is dead. [3]
Acting Attorney General Todd Blanche announces a settlement: a formal apology and "no monetary payment or damages" to the Trumps, and a $1.776 billion Anti-Weaponization Fund run by five people the attorney general appoints, open until 15 Dec 2028. Trump also drops about $230M in administrative claims against DOJ. The deal includes an agreement that the government will not pursue tax claims against Trump, his family and companies. [1]
Judge Leonie Brinkema (E.D. Va.) temporarily blocks the fund in a suit by a former Jan. 6 prosecutor, the city of New Haven, Common Cause and others. Other challenges follow, including a separate suit in Washington by CREW. [2]
Trump, Eric Trump, Donald Trump Jr. and the Trump Organization sue the IRS and Treasury in Miami federal court for $10 billion over the leak of their tax returns by a former IRS contractor (Trump v. IRS, 1:26-cv-20609). [1]
Responses
- Todd Blanche: "The machinery of government should never be weaponized against any American... we are setting up a lawful process for victims of lawfare and weaponization to be heard and seek redress." [1]
- Trump legal team: Said Trump entered the settlement "squarely for the benefit of the American people" and that the IRS "wrongly allowed a rogue, politically-motivated employee" to leak his records. [5]
- Justice Department: Called the retired judges' bid to reopen the case "frivolous" and said the government had authority to settle. [2]
- Todd Blanche (per NPR): Said no members were appointed to run the fund, no money was transferred and no claims were paid. [7]
Who is acting on it
- Lawsuit Common Cause, City of New Haven: Sued to stop the $1.776B fund, with a former Jan. 6 prosecutor and others (May 2026, What happened next)
- Lawsuit CREW: Separate suit against the fund in Washington (May 2026, What happened next)
- Confirmation condition Sen. John Cornyn (R-TX), Sen. Thom Tillis (R-NC): Tied Blanche's confirmation as attorney general to shutting the fund for good (31 Jul 2026, What happened next)
Sources
Cite this case
Public Trust Tracker. "Trump's $10B suit against his own IRS and the $1.776B fund" (INV-036). Last updated 29 Sep 2026. https://publictrusttracker.org/case/inv-036-trumps-10b-suit-against-his-own-irs-and-the-1-776b-fund/
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