Trump creates $1.8B compensation fund

The Justice Department said on May 18 that it created a $1.776 billion Anti-Weaponization Fund as part of a settlement of President Donald Trump’s lawsuit against the Internal Revenue Service over the leak of his tax returns. The department said the fund would hear claims from people who say they were targeted by the federal government for political, personal or ideological reasons, and that the money would come from the federal Judgment Fund. The settlement gives Trump, Donald Trump Jr., Eric Trump and the Trump Organization a formal apology but no direct damages, according to the department. By Tuesday, the plan had triggered a resignation at Treasury and new questions from lawmakers about who could collect money and how the arrangement was structured. ### How was the fund created? The Justice Department said the fund was established by Attorney General Todd Blanche as part of the settlement in *President Donald J. Trump v. Internal Revenue Service*. The department said the plaintiffs agreed to drop the case with prejudice and withdraw two administrative claims tied to the Mar-a-Lago search and what it called the “Russia-collusion hoax” in exchange for the fund and a formal apology. (justice.gov) The settlement followed Trump’s $10 billion lawsuit over the disclosure of his tax information after a government contractor pleaded guilty in 2023 to stealing and leaking tax data of Trump and other wealthy Americans, ABC News reported. U.S. District Judge Kathleen Williams closed the case on May 18 after Trump’s lawyers moved to dismiss it, saying there was no settlement of record for her to review. (justice.gov) ### Where does the $1.776 billion come from? The Justice Department said the fund will receive $1.776 billion from the Judgment Fund, a permanent appropriation used to pay certain court judgments and settlements against the federal government. The department said any money left over when the program ends will revert to the federal government. ABC News reported that the attorney general will receive quarterly updates on awards and that the fund can be audited. (abcnews.com) The Justice Department said the claims process is voluntary and that the fund must stop processing claims by Dec. 1, 2028. TIME reported the program would be run by a five-member commission appointed by the attorney general, with one member chosen in consultation with congressional leadership. (justice.gov) ### Who can benefit, and who cannot? The Justice Department said there are “no partisan requirements” to file a claim, but it did not publish detailed eligibility rules in its initial announcement. It said the fund can issue both monetary awards and formal apologies to people who say they suffered “weaponization and lawfare.” ABC News reported that Trump himself would not be eligible for money from the fund under the settlement terms, even though the agreement resolved his lawsuit. (justice.gov) The same report said Trump would retain the right to remove commission members, a provision that added to scrutiny from critics and lawmakers. ### Why did Brian Morrissey resign? Brian Morrissey, the Treasury Department’s general counsel, resigned on May 19, according to Treasury and Politico. (justice.gov) Politico reported that Treasury was assigned in a Justice Department memo to establish an account for the fund and that the Treasury secretary would have to certify payments into it. Treasury said in a statement that Morrissey had served “with both honor and integrity” and wished him well, but did not give a reason for his departure. (abcnews.com) Acting Attorney General Blanche told senators on May 19 that he did not know whether the resignation was related to the fund. ### What are the main points of dispute? Todd Blanche said in the Justice Department’s statement that the fund creates “a lawful process” for people who say they were wronged to seek redress. (politico.com) Principal Associate Deputy Attorney General Trent McCotter said government power should not be used to target people for political, personal or ideological reasons. The Associated Press reported on May 20 that the government also agreed, in a related expansion of the settlement, to permanently drop tax claims against Trump. (politico.com) That report said the settlement document became part of a broader fight over whether the administration was using a lawsuit over leaked tax returns to secure other protections and benefits. The next formal milestones are administrative. (justice.gov) The Justice Department said the fund must send quarterly reports to Blanche, Treasury must handle the account setup and payment certification, and the claims process is scheduled to end by Dec. 1, 2028. (apnews.com)