{"id":677776,"date":"2026-05-18T16:10:22","date_gmt":"2026-05-18T16:10:22","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/677776\/"},"modified":"2026-05-18T16:10:22","modified_gmt":"2026-05-18T16:10:22","slug":"trump-administration-creates-1-776-billion-fund-for-allies-of-the-president-after-he-drops-lawsuit-against-irs","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/677776\/","title":{"rendered":"Trump administration creates $1.776 billion fund for allies of the president after he drops lawsuit against IRS"},"content":{"rendered":"<p class=\"paragraph-elevate inline-placeholder vossi-paragraph_elevate\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmpb7j3n7000x2do291cj6v4l@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            The Justice Department on Monday announced the creation of a $1.776 billion fund to compensate President Donald Trump\u2019s allies who claim they were unfairly targeted by the previous administration.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph_elevate\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmpbdlbbu000a3b6r9xkw5ud4@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            It\u2019s an unprecedented move that would allow the president\u2019s administration to pay his supporters from a government agency he controls with taxpayer money.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph_elevate\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmpbdlhhg000c3b6ri34xgegp@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            Its creation comes as Trump <a href=\"https:\/\/www.documentcloud.org\/documents\/28132069-trump-irs-lawsuit-filing\/\" target=\"_blank\" rel=\"nofollow noopener\">dropped<\/a> his $10 billion lawsuit alleging that the Internal Revenue Service failed to protect Trump and the Trump Organization from an unauthorized leak of their tax returns.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph_elevate\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmpb7yg0g000h3b6rwjshlqvv@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            Trump himself will not receive any payments, but will receive a formal apology, the Justice Department said.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph_elevate\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmpb7ygt1000j3b6rfsz7buet@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            In January, Trump, along with his sons Donald Trump Jr. and Eric Trump, <a href=\"https:\/\/www.cnn.com\/2026\/01\/29\/business\/trump-sues-irs-for-usd10-billion\" rel=\"nofollow noopener\" target=\"_blank\">sued the IRS and Treasury Department<\/a> for at least $10 billion. The lawsuit accuses the IRS of an unauthorized leak of their tax returns from his first presidency.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph_elevate\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmpb7yhh1000l3b6r5z2zd5hm@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            Trump\u2019s lawsuit alleges that the IRS failed to protect confidential tax information and the tax information of the Trump Organization. <a href=\"https:\/\/www.cnn.com\/2024\/01\/29\/politics\/charles-littlejohn-trump-taxes-leak\" rel=\"nofollow noopener\" target=\"_blank\">Charles Littlejohn<\/a>, a former IRS contractor, was sentenced to five years in prison for leaking Trump\u2019s tax records, along with the records of thousands of others.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph_elevate\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmpb7yhh1000m3b6r1qr33kfd@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            Trump sued the IRS in his capacity as a citizen, not as the president.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph_elevate\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmpb8gmus000v3b6r5ubvfh0y@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            Soon after Trump brought the lawsuit, the federal judge presiding over the case in Florida, district Judge Kathleen Williams, expressed skepticism that it was the kind of legitimate legal dispute that belonged in her courthouse.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph_elevate\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmpb8gnju000x3b6rb3cu2abl@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            She asked a group of outside lawyers to brief her on the question. They too raised concerns about the propriety of a president seeking monetary damages for personal reasons against a government agency within his executive branch.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph_elevate\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmpb7yhh1000o3b6rf982smad@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            The deal follows several others reached in lawsuits filed by allies of Trump.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph_elevate\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmpb7yhh1000p3b6rctxblhuv@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            In March, the department settled a lawsuit with <a href=\"https:\/\/www.cnn.com\/2026\/03\/25\/politics\/michael-flynn-settlement-justice-department\" rel=\"nofollow noopener\" target=\"_blank\">Michael Flynn<\/a>. Flynn sued the government for $50 million, accusing the FBI of trying to entrap him in the first few days of the Trump administration. Flynn was awarded over $1 million in the settlement.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph_elevate\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmpb7yhh1000q3b6r8x7vw4d8@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            <a href=\"https:\/\/www.cnn.com\/2026\/04\/22\/politics\/trump-administration-settles-lawsuit-with-ex-trump-adviser-carter-page\" rel=\"nofollow noopener\" target=\"_blank\">Carter Page<\/a>, a former Trump campaign adviser, also settled a lawsuit with the Trump administration in April. Page was suing the Justice Department and FBI over flawed government surveillance he faced due to Russian contacts in 2016.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph_elevate\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmpb8i43800143b6r5cv8tado@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            They wrote that, if Trump sought to voluntarily submit the case to facilitate such a settlement, the court should scrutinize that maneuver under a legal rule that would allow the court to sanction the lawyers involved.\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph_elevate\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmpb8gnju000z3b6rxrp69e8y@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            Minutes after Trump\u2019s legal team notified the court he\u2019s dropping the case on Monday, <a href=\"https:\/\/litigationtaskforce.house.gov\/sites\/evo-subsites\/litigationandresponse.house.gov\/files\/evo-media-document\/54-1.pdf\" target=\"_blank\" rel=\"nofollow noopener\">nearly 100 House Democrats submitted a \u201cfriend-of-the-court\u201d brief<\/a> accusing Trump of \u201cblatant self-dealing.\u201d\n    <\/p>\n<p class=\"paragraph-elevate inline-placeholder vossi-paragraph_elevate\" data-uri=\"cms.cnn.com\/_components\/paragraph\/instances\/cmpb7nvpy00063b6rp5znwf43@published\" data-editable=\"text\" data-component-name=\"paragraph\" data-article-gutter=\"true\">\n            This story is breaking and will be updated.\n    <\/p>\n","protected":false},"excerpt":{"rendered":"The Justice Department on Monday announced the creation of a $1.776 billion fund to compensate President Donald Trump\u2019s&hellip;\n","protected":false},"author":2,"featured_media":677777,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[43,44,41,39,42,40],"class_list":["post-677776","post","type-post","status-publish","format-standard","has-post-thumbnail","category-headlines","tag-headlines","tag-news","tag-top-news","tag-top-stories","tag-topnews","tag-topstories"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/677776","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=677776"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/677776\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/677777"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=677776"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=677776"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=677776"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}