WASHINGTON, D.C.—President Trump and his family sued the IRS in January 2026 for $10 billion over the leak of Trump’s tax returns in 2020, during his first term in office. A judge raised questions about the legality of the suit, and now Trump’s DOJ has announced it will settle the case with him by creating a $1.7 billion “anti-weaponization fund” that would be used to compensate his allies who claim they were unfairly investigated during the Biden administration. Following is a statement by Amb. Norm Eisen (ret.), co-founder and executive chair of Democracy Defenders Fund, regarding the settlement:

“This is a shakedown of every taxpayer. The Trump administration is effectively having taxpayers pay off the president's allies without defining why taxpayers should be on the hook for compensating people such as convicted Jan. 6 rioters. This is a corrupt, circular transaction which could allow the president to essentially write checks to his friends with public money.

"Democracy Defenders Fund will work with our allies and those committed to the rule of law to block this shameful abuse of power. If this settlement is allowed to stand, the only limit to Trump’s grift and power will be his own imagination."

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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.