The Justice Department announced Monday the creation of a $1.776 billion “Anti-Weaponization Fund,” drawn from taxpayer money, after President Donald Trump dropped his $10 billion lawsuit against the Internal Revenue Service. The dollar amount is deliberate: $1,776,000,000 styled as a founding-era rallying cry. The people eligible to collect from it include the nearly 1,600 individuals charged or convicted in connection with the January 6, 2021, Capitol attack.
Congress never voted on any of it.
The Deal That Wasn’t a Trial
Trump filed suit against the IRS in January 2026, alleging the government failed to prevent a contractor from leaking his confidential tax returns. He sought $10 billion. Last month, U.S. District Judge Kathleen M. Williams questioned whether there was an “actual controversy” for the court to address, given that Trump controls the Justice Department that was supposed to be defending the IRS against his own lawsuit.
Outside legal experts told the court the situation was unprecedented: “A sitting president seeks monetary damages for alleged harm to his personal interests from an executive agency that he controls.” The Trump administration was facing a Wednesday deadline to explain why the case should continue. Monday, Trump’s personal lawyers filed to drop it.
In exchange, Acting Attorney General Todd Blanche (Trump’s former personal criminal defense lawyer) announced the DOJ was creating the fund.
What $1.776 Billion Buys
The fund draws from the Treasury Department’s Judgment Fund, a perpetual appropriation the executive branch uses to pay court settlements, requiring no congressional vote and no appropriations bill. The DOJ cited precedent: the Obama-era “Keepeagle” case, which created a $760 million fund to redress claims of government discrimination against Native American farmers.
Five commissioners will administer the fund, all appointed by the Attorney General, with one chosen in consultation with congressional leadership. Trump can remove any member. Eligibility covers anyone claiming they were wrongfully targeted by the Biden administration, a definition the DOJ explicitly extends to the roughly 1,600 people charged in connection with January 6, including those convicted of assaulting Capitol Police officers. The fund closes December 1, 2028, with any leftover money reverting to the federal government.
Under the settlement terms, Trump, Donald Trump Jr., Eric Trump, and the Trump Organization receive a formal government apology and zero cash.
What Congress Is Calling It
Rep. Jamie Raskin, ranking member of the House Judiciary Committee, called the arrangement “pure fraud and highway robbery.” Rep. Joe Neguse of Colorado called it “one of the most brazen examples of corruption we’ve seen from this administration.” The House Democrats’ Litigation Task Force filed a motion Monday to block the fund.
“Only Congress has the power to appropriate money, and Congress never voted on creating this $1.7 billion political slush fund at the Department of Justice, and Congress would never pass that.” — Rep. Jamie Raskin, Ranking Member, House Judiciary Committee
Ninety-three House Democrats filed a brief calling it “collusive litigation to force the American people to put” billions into the pockets of the president’s allies. The brief argues the deal violates the separation of powers, the Domestic Emoluments Clause, and the two-year statute of limitations on the underlying civil claims. A number of Republicans also objected, joining Democrats in calling it an illegal “political slush fund.”
Monday’s filing resolved a legal problem Trump could not otherwise survive: a federal judge asking how a sitting president sues an agency he controls. The administration’s answer is $1.776 billion in taxpayer money administered by an acting attorney general who spent years as Trump’s personal defense lawyer, overseen by a commission Trump can dismiss, with no public disclosure requirement for how the money moves. Rep. Neguse called it the most brazen example of corruption from this administration. The commission will begin taking claims shortly.
Sources
- Justice Department Announces Anti-Weaponization Fund — U.S. Department of Justice (official press release)
- DOJ sets up $1.8B ‘anti-weaponization’ fund after Trump drops IRS lawsuit — NBC News
- Justice Department announces $1.7 billion ‘Anti-Weaponization Fund’ to compensate Trump allies — PBS NewsHour
- Trump creates $1.8B ‘anti-weaponization’ fund after dropping IRS suit — Axios
- Trump dropped IRS suit in deal to create $1.776B ‘anti-weaponization’ fund — The Hill
- DOJ announces $1.7B ‘Anti-Weaponization Fund’ as part of Trump IRS lawsuit settlement — ABC News
- Trump’s deal to drop IRS suit creates ‘Anti-Weaponization Fund’ — The Washington Post
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