Just as the US government has never been sued by its president, it has never settled a lawsuit involving the head of the executive branch.
Before the case was settled, a federal court set a 20 May deadline for both sides to address whether a legitimate legal dispute existed, given that Trump oversees the IRS.
In exchange for the president dropping his case, the justice department agreed to establish a $1.776bn “Anti-Weaponization Fund” that would pay claims from “those who suffered under weaponisation and lawfare”.
Most Democrats have called it a “slush fund” where Trump can hand out money to allies as well as rioters who breached the US Capitol on 6 January 2021.
Some Republicans, including Senate Majority Leader John Thune, have expressed scepticism as well.
Already, at least one claim has been filed.
Michael R Caputo, was a Trump campaign adviser and later served in the first Trump administration, is seeking $2.7m, saying in a letter posted on X that “the machinery of government was clearly weaponized against my family” during the investigation into possible Russian involvement in the 2016 election.
In a statement to the BBC, he said his family was “profoundly grateful” that Trump “will not let this political weaponization stand.”
At the same time, resistance is also already mounting.
Two police officers who were at the capitol on 6 January 2021 filed a lawsuit on Wednesday arguing the fund is illegal because “no statute authorizes its creation, the settlement on which it is premised is a corrupt sham, and its design violates the Constitution and federal law”.
They also argued it could endanger their safety by providing funds to rioters who regularly threaten their lives and could lead to the funding of paramilitaries.