US government agrees to drop tax claims against Trump in broadening of IRS lawsuit settlement

WASHINGTON — In a significant legal development, the United States government has agreed to permanently dismiss tax-related claims against former President Donald Trump. This decision emerges as part of a settlement to conclude Trump’s extensive $10 billion lawsuit against the Internal Revenue Service, which stemmed from the unauthorized disclosure of his tax returns.

According to the settlement document shared on the Department of Justice website, the U.S. government is explicitly prohibited from pursuing further investigation or prosecution concerning the current tax matters of Trump, his sons, or the Trump Organization. This assurance is outlined in a concise one-page document.

On Monday, the Trump administration introduced a substantial $1.8 billion fund aimed at compensating those aligned with the Republican leader who feel they have faced unwarranted scrutiny or legal action. Critics, including Democrats and watchdog groups, have criticized this initiative, labeling it as “corrupt” and a violation of constitutional principles.

President Donald Trump gestures to reporters as he walks across the South Lawn of the White House, Friday, May 15, 2026, in Washington.
President Donald Trump gestures to reporters as he walks across the South Lawn of the White House, Friday, May 15, 2026, in Washington.AP Photo/Jacquelyn Martin

The fund, termed the “Anti-Weaponization Fund,” amounts to $1.776 billion and is designed to assist individuals who perceive themselves as victims of politically motivated prosecutions. This includes actions allegedly undertaken by the Justice Department during the Biden administration. Acting Attorney General Todd Blanche described it as a legitimate mechanism for those affected by what he referred to as “lawfare and weaponization” to seek justice and compensation.

In a related agreement, also made public on Monday, it was disclosed that the U.S. government will issue a formal apology to Trump. However, the former president will not receive any financial compensation or damages as part of this settlement.

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