President Trump drops lawsuit against IRS : NPR
NPR Topics: Politics — 2026-05-18 15:10:00 — www.npr.org
President Trump is walking away from a $10 billion case he filed against the IRS over the leak of his tax returns. The Justice Department has stated that Trump will not receive any direct financial payment to conclude the case. Instead, he plans to create a compensation fund of nearly $1.8 billion for individuals who claim to be victims of government “weaponization.” This resolution has raised concerns among House Democrats and ethics officials, who argue that it could serve as a means to reward Trump’s allies without sufficient oversight.
Trump’s lawsuit against the IRS was initiated earlier this year, despite the tax return leak occurring in 2019 by a federal contractor during his presidency. Legal experts noted that it is unprecedented for a sitting president to sue his own administration. At a rally, Trump expressed surprise at the situation, stating, “And they do say that, you know, it’s never been a case like this. Donald Trump sues the United States of America. Donald Trump becomes president, and now Donald Trump has to settle the suit.”
The judge overseeing the case, Kathleen Williams, had previously questioned whether the matter was appropriate for federal court, given that Trump was on both sides of the dispute. Instead of responding to her inquiries, Trump’s legal team filed a notice to dismiss the lawsuit, asserting that there was no role for the judge moving forward.
The proposed anti-weaponization fund, amounting to $1.776 billion, is intended to address claims from individuals alleging they were victims of government overreach, potentially including those involved in the January 6 Capitol attack. The fund will be managed by Todd Blanche, the acting attorney general and Trump’s former personal lawyer, who stated that the government should not be weaponized against any American.
In response to this resolution, nearly a hundred Democrats in Congress are seeking to intervene in the IRS case, arguing that the lawsuit lacked merit and that the statute of limitations had expired. Ethics watchdogs have condemned the arrangement, with some calling it one of the most corrupt acts in American history. Critics argue that the current leadership at the Department of Justice is attempting to curry favor with Trump, raising questions about the use of taxpayer money in this context.
Source: https://www.npr.org/2026/05/18/nx-s1-5825812/president-trump-drops-lawsuit-against-irs