A federal judge blocked the U.S. Justice Department from distributing $1.8 billion from an IRS settlement to a fund created by President Donald Trump.
Judge Leonie Brinkema, in the Eastern District of Virginia, blocked the DOJ from distributing $1.8 billion to Trump’s “Anti-Weaponization Fund.” The fund will pay millions to Trump’s supporters who were arrested and sent to prison for the January 6 protest.
In the Southern District of Florida, Judge Kathleen Williams ordered Trump’s lawyers to explain why 35 retired judges claim that his IRS settlement was “collusive and fraudulent.”
The IRS settlement raises profound questions
The 35 former federal judges urged Judge Williams to reopen Trump v. IRS because “the purported ‘settlement’ raises profound questions about the parties’ candor toward the Court and manipulation of the judicial system, which threatens to undermine confidence in the administration of justice.”
Judge Williams ordered the government to file a response by June 15. She said the response should address “the charges of collusion” and whether the dismissed case “was premised on deception by the Parties.”
Trump sued the IRS in January after an IRS contractor illegally leaked his tax returns. The IRS and Trump agreed to a settlement on May 18, and Trump dropped his lawsuit.
Lawmakers argued the IRS settlement had nothing to do with January 6
In his lawsuit filed on January 29, Trump claimed the contractor inflicted damages of “at least” $10 billion. The IRS quickly settled the case without defending it.
The Anti-Weaponization Fund is intended to compensate Trump supporters who protested at the Capitol building in Washington, D.C. on January 6, 2021.
Trump’s plan to compensate the January 6 protestors with millions in taxpayer dollars angered Democrat lawmakers.
Lawmakers argued that Trump’s settlement with the IRS had nothing to do with Trump’s supporters who claim they were targeted by the Biden administration.
Lawmakers also disagreed with Trump’s unusual immunity from civil or criminal liability for federal offenses, including penalties for past income tax violations.
The unusual settlement included an assurance that the IRS will never audit Trump or his family members and associates for life. It is believed to be the first-ever settlement of its kind involving the IRS.