The Trump administration has created a nearly $1.8 billion fund intended to compensate people who say they were unfairly targeted by previous administrations. The move grew out of a settlement between the Internal Revenue Service and Donald Trump, one of his adult sons, and the Trump Organization over the unauthorized disclosure of Trump’s tax information years ago.
The agreement also says the federal government will not bring claims against the president, his family, or their businesses for past tax issues. Critics have argued that the arrangement is highly unusual, while legal experts have questioned how far any court challenge could go in stopping the new fund.
What the settlement covers
The IRS deal centers on a lawsuit filed in January by Trump, one of his adult sons, and the Trump Organization. That case focused on the unauthorized disclosure of Trump’s tax information, which became the basis for the wider settlement.
The agreement links that dispute to a broader policy move inside the Trump administration. Under the terms described in the documents, the federal government is also declining to pursue claims tied to earlier tax matters involving Trump and his companies.
The Anti-Weaponization Fund
The administration says the settlement helped establish what it calls the “Anti-Weaponization Fund.” The fund is designed to hold nearly $1.8 billion for people who say they were unfairly targeted by prior administrations.
The order that created the fund was issued by acting Attorney General Todd Blanche on May 18. CNN’s annotated version of the documents shows how the settlement and the fund are connected in the official paperwork.
Why critics are objecting
The arrangement has drawn strong criticism from opponents who describe the fund as a slush fund for Trump’s allies. They also say the tax settlement reflects political corruption rather than a routine legal resolution.
Legal experts cited by CNN offered mixed views on whether challengers could successfully block the fund in court. Even so, at least one lawsuit has already been filed in federal court in Washington, DC, seeking to stop the fund from moving forward.
What the documents show
CNN annotated three documents that set out the settlement and the fund. One is the official agreement reached by Donald Trump, Eric Trump, and The Trump Organization with the IRS, while another is the order that formally created the Anti-Weaponization Fund.
Together, the documents show a settlement that goes beyond a tax dispute and into a broader fight over how the federal government handles claims of past targeting. The dispute now sits at the intersection of legal settlement terms, executive action, and a new compensation fund that critics say raises serious ethical questions.
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