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DEMOCRACY DEFENDERS FUND: THE IRS IS NOT PRESIDENT TRUMP’S PERSONAL ATM

Press Release | May 13, 2026

Washington, D.C.—Late Tuesday, news outlets reported that the Department of Justice is engaged in settlement talks over President Trump’s $10 billion claim against the IRS, increasing the probability that taxpayers will finance a substantial payout to the president and his family. The development comes just weeks after a federal judge signaled constitutional concerns with the case, questioning whether a president can sue the federal government while simultaneously serving as head of the executive branch that oversees it. The settlement may also result in the IRS dropping its audits of President Trump, his family members and businesses even though the underlying lawsuit was based on leaks by a government contractor. Following are statements from Democracy Defenders Fund:


“Public office is not a personal ATM. This is deeply disturbing and abnormal, and it raises profound ethical concerns. It should set off alarm bells,” said Virginia Canter, director and chief counsel for ethics and anti-corruption at DDF. “Elected officials are put in office to serve the public, not enrich themselves at taxpayer expense. Weeks ago, a federal judge questioned whether a sitting president can even sue the government he oversees, underscoring how conflicted the lawsuit is at its core. Now, Trump’s DOJ is exploring ways to circumvent the judicial process and allow him to cash in at taxpayer expense.”


“We need to shout about this grift from the rooftops,” said Amb. Norm Eisen (ret.), co-founder and executive chair of DDF. “Public office should be a public trust, not a family trust fund. Setting the legal nuances aside, the first question for this president is why he thinks he’s entitled to pursue $10 billion from U.S. taxpayers. At a moment when millions of families can’t afford to fill their gas tanks or pay daily expenses, the president is seeking an unfathomable sum of public money from the very government he controls. Americans have every right to ask: Why? Why should public dollars go toward enriching a sitting president who has already raked in billions through crypto ventures and other schemes tied to his time in office? Facts still matter. The underlying tax leak was already investigated, and the person responsible was prosecuted and imprisoned. Yet Trump’s DOJ wants taxpayers to foot the bill for Trump’s insatiable retribution campaign while the president personally benefits.”


"Having DOJ pay out a massive settlement is no different than the Treasury giving a billion-dollar bonus or walking into Fort Knox and taking the gold,” said Andrew Warren, DDF’s deputy legal director. “Taking taxpayer money is theft—full stop. It's what kings and dictators have always done, and it should alarm every American."


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Democracy Defenders Fund brings together a nonpartisan team to work with national, state and local allies across the country to defend in real-time the foundations of our democracy.

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