The U.S. Department of Justice has reached a sweeping settlement with President Donald Trump that resolves his $10 billion lawsuit against the IRS (Internal Revenue Service) over the leak of his tax returns, while permanently barring the agency from auditing Trump, his family, or his businesses for past tax liabilities.
As part of the agreement, the Justice Department also announced the creation of a nearly $1.8 billion “Anti-Weaponisation Fund” to compensate individuals who claim they were victims of government “lawfare” or politically motivated investigations during previous administrations.
Trump, along with his sons Donald Trump Jr. and Eric Trump, and the Trump Organisation, filed the lawsuit in January 2026, seeking $10 billion in damages. They alleged that the IRS failed to adequately safeguard their tax information, which was leaked to media outlets, including The New York Times and ProPublica, in prior years.
On Monday, May 18, Trump’s legal team filed a notice of voluntary dismissal “with prejudice” in U.S. District Court in Miami, ending the case. A federal judge formally closed it that evening. In exchange, Trump also agreed to drop additional claims related to the Russia investigation into his 2016 campaign and the 2022 FBI raid on Mar-a-Lago.
A one-page addendum signed by Acting Attorney General Todd Blanche and posted to the DOJ website on Tuesday, May 19, expanded the deal dramatically. It states that the IRS is “FOREVER BARRED and PRECLUDED” from “prosecuting or pursuing” any examinations, audits, or claims against Trump, his family members, trusts, related individuals, or affiliated companies for any tax liabilities, interest, or related matters based on returns filed before the settlement date.
The provision applies to all currently pending or potentially pending matters and covers past audits or reviews. It is interesting that this exemption from audit was separately added; it was not mentioned in the original settlement announced a day before. As per the original settlement, Trump was to drop his suits against the IRS in exchange of setting up the $1.8 billion Anti-Weaponisation Fund.
As part of the resolution, the DOJ established the $1.776 billion Anti-Weaponisation Fund. The fund aims to provide a “systematic process to hear and redress claims” from individuals who allege they suffered from government weaponisation, including investigations or prosecutions they view as politically motivated during the Biden administration.
Trump and his co-plaintiffs will receive no direct monetary payment but will get a formal apology. The fund draws from taxpayer resources and is expected to process claims from a range of parties, potentially including Trump allies. The Justice Department has stated the fund will include safeguards against fraud and can be audited.
