The US Justice Department on Monday announced a $1.776 billion fund to compensate President Donald Trump’s allies who say they were unfairly targeted by the previous administration, in a move that immediately drew criticism from Democrats and watchdog groups.
The announcement came as Trump dropped his $10 billion lawsuit against the IRS over the leak of his tax returns.
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Justice Department Announces Anti-Weaponization Fund: Part of settlement agreement in President Donald J. Trump v. Internal Revenue Service
Per the settlement, plaintiffs will receive a formal apology but no monetary payment or damages of any kind.
There are no partisan…
— U.S. Department of Justice (@TheJusticeDept) May 18, 2026
Greeted with a grimace
According to CNN’s report, the fund is framed as an “anti-weaponization” effort and appears to have few restrictions on who may file a claim.
The department said Trump himself will not receive money, but he will get a formal apology. Trump told reporters at the White House that the beneficiaries were “treated brutally” and said they were being reimbursed for legal costs and other losses.
A rather large cheque
Acting Attorney General Todd Blanche, who was previously on Trump’s personal defense team, said in a statement that the department intended to “make right the wrongs” and establish a “lawful process” for victims of what he called government weaponization.
The department said a five-member commission, yet to be named, will run the fund, and Trump will have the power to fire any of its members. Claims will be processed through December 15, 2028, about a month before his second term ends.
do you understand what just happened..
Trump sued his own IRS for $10 billion over leaked tax returns.. then settled with his own DOJ.. and the settlement created a $1.776 billion taxpayer-funded fund to compensate his political allies
the president filed the lawsuit.. the… https://t.co/pnoCtniqTS pic.twitter.com/5uwBD20Gf6
— Tuki (@TukiFromKL) May 18, 2026
No partisan filter, they insist
The fund will be open to claims from people alleging political targeting, with the department saying there are “no partisan requirements” for applicants.
Trump has broadly argued that his allies were targeted through investigations ranging from the Russia probe to cases connected to the January 6, 2021, Capitol riot.
In January, Trump, along with Donald Trump Jr. and Eric Trump, sued the IRS and Treasury Department for at least $10 billion, alleging an unauthorized leak of tax returns. The case stemmed from the actions of former IRS contractor Charles Littlejohn, who was sentenced to five years in prison for leaking Trump’s tax records and those of thousands of others.
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A legal squall gathers
The move is likely to face legal and political challenges. Senate Minority Leader Chuck Schumer called the effort “depraved,” while Public Citizen said it amounted to a “slush fund” for Trump supporters and cronies.
A federal judge in Florida had already expressed skepticism about whether Trump’s lawsuit was a legitimate dispute fit for her court, and nearly 100 House Democrats filed a friend-of-the-court brief soon after the case was dropped, accusing Trump of “blatant self-dealing.”
The settlement follows other recent agreements involving Trump allies, including cases brought by Michael Flynn and Carter Page.
