Trump may settle his lawsuit against IRS for $1.7bn fund to compensate allies

In unprecedented self-dealing maneuver, billions of taxpayer dollars could be paid to US president and his allies There is growing concern Donald Trump’s massive $10bn lawsuit against the Internal Revenue Service may soon be settled by his own administration – an unprecedented, self-dealing maneuver for a US president, in which billions of taxpayer dollars could be transferred to the president or his allies. Trump may agree to drop his lawsuit in exchange for the launch of a $1.7bn fund to compensate people he says were wrongfully targeted by the Biden administration, according to reports by ABC News and the New York Times. Continue reading...

Cate Brown and Sam Levine · Sat, May 16, 2026, 9:00 AM
US news | The Guardian

Trump may settle his lawsuit against IRS for $1.7bn fund to compensate allies

In unprecedented self-dealing maneuver, billions of taxpayer dollars could be paid to US president and his allies

There is growing concern Donald Trump’s massive $10bn lawsuit against the Internal Revenue Service may soon be settled by his own administration – an unprecedented, self-dealing maneuver for a US president, in which billions of taxpayer dollars could be transferred to the president or his allies.

Trump may agree to drop his lawsuit in exchange for the launch of a $1.7bn fund to compensate people he says were wrongfully targeted by the Biden administration, according to reports by ABC News and the New York Times.

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