Trump drops IRS lawsuit, sets up $1.7bn US anti-weaponisation fund

Lead

President Donald Trump has withdrawn his $10bn lawsuit against the Internal Revenue Service (IRS), and his administration has announced the creation of a $1.77bn fund to compensate people who claim to have been victims of politically motivated lawfare. The court filing, released on Monday in Florida, did not disclose the terms of the deal, but the Justice Department (DOJ) on Monday announced the establishment of the Anti-Weaponisation Fund, which it said would "provide a systematic process to hear and redress claims of others who suffered weaponisation and lawfare"—as reported by Al Jazeera. The White House announced that a settlement had been reached between the Justice Department and the IRS over Trump's lawsuit, according to Deutsche Welle. Trump, his adult sons Donald Trump Jr. and Eric Trump, and the Trump Organization had sued the IRS in January, blaming the agency for failing to prevent a former contractor from leaking their tax information to media outlets.

Coverage Comparison

Coverage of the development varied in emphasis. France 24 focused on the grant of immunity to Trump, his family and companies, reporting that the IRS will not pursue the president for back tax claims under an agreement announced on Tuesday by the Justice Department. Al Jazeera's second report also highlighted the immunity granted to Trump, his family and his businesses, which was added as an addendum to Trump's agreement to settle the $10bn lawsuit. Deutsche Welle reported the settlement from the angle of the dropped lawsuit, noting the creation of a $1.76bn fund to compensate victims of lawfare. The Guardian's coverage was more critical, focusing on the addition of a provision barring the IRS from auditing Trump's tax returns and describing the fund as secretive and loosely controlled.

Several outlets reported similar core facts: the lawsuit arose from the leak of Trump's tax returns to media outlets, and the settlement established a fund to compensate political allies. The agreed figures ranged from $1.7bn to $1.776bn depending on the source. The Guardian reported that the fund would be run by five people, all subject to being fired at will by the president, and that the agreement applies to anything filed before the agreement was reached. Al Jazeera noted that Trump himself is not eligible for compensation from the fund, which Democrats have denounced as a "slush fund."

Key Claims

• The court filing released on Monday did not disclose the terms of the deal, as reported by Al Jazeera.
• The Department of Justice announced the establishment of a $1.77bn fund called the Anti-Weaponisation Fund, according to Al Jazeera.
• The case arose from the leak of Trump's tax returns to media outlets, as reported by multiple sources, including Al Jazeera and Deutsche Welle.
• Trump dropped the $10bn lawsuit against the IRS, a claim carried by Al Jazeera, Deutsche Welle, France 24, and The Guardian.
• The settlement established a fund to compensate political allies for supposed persecution by the government, as reported by multiple sources.
• The Department of Justice granted immunity to Trump, his family, and his businesses from any ongoing audits, according to Al Jazeera and France 24.
• The agreement prohibits the IRS from auditing Trump, his family, and related entities, as reported by The Guardian and others.
• The fund will be run by five people, all subject to be fired at will by the president, and the agreement applies to anything filed before the agreement was reached, as reported by The Guardian.
• The IRS will not pursue President Trump for back tax claims, as reported by France 24.
• The federal government is abandoning the effort to create the $1.8bn fund, but maintaining the agreement that prohibits the IRS from auditing Trump, according to The Guardian.

Perspectives

Trump Administration: Acting Attorney General Todd Blanche defended the compensation fund, pushing back against Democratic claims that money is "going to be only given to Republicans or friends of the president," as reported by France 24. He said that "anybody in this country is eligible to apply." Blanche also stated that the department would continue granting immunity to Trump and his family members on tax matters before the agreement was reached, according to The Guardian.

Democratic Critics: Democratic lawmakers harshly criticized the agreement. Senator Adam Schiff of California accused the Trump administration of corruption and "self-dealing," stating, "The tax-dodging President gets himself and his whole family a tax break, thanks to Todd Blanche," as reported by Al Jazeera. Senator Chris van Hollen called it an "outrageous, unprecedented slush fund," and Richard Painter, the chief White House ethics lawyer under former President George W. Bush, said exempting Trump from tax obligations would be unconstitutional, according to Al Jazeera.