The White House announced Monday that the US Justice Department and the Internal Revenue Service (IRS) have reached a settlement in President Donald Trump's lawsuit seeking $10 billion over the leak of his tax returns.

Trump, his adult sons Donald Trump Jr. and Eric Trump, and the Trump Organization sued the IRS in January 2023, alleging the agency failed to prevent a former contractor from leaking their tax information to media outlets.

The IRS contractor pleaded guilty in 2023 to leaking the tax returns and was sentenced to five years in prison. Although the leak occurred during Trump's first term, he filed the lawsuit after being sworn in for a second term, effectively suing an agency he oversees.

Under the settlement, the Trump administration agreed to drop the $10 billion lawsuit in exchange for creating a $1.76 billion "Anti-Weaponization Fund" to compensate those it claims were victims of "lawfare" and prosecutions under the Biden administration.

Acting Justice Secretary Todd Blanche stated, "The machinery of government should never be weaponized against any American," vowing to rectify past wrongs and prevent recurrence.

Critics argue the settlement is an attempt to divert taxpayer money to Trump and his allies. Rep. Jamie Raskin called it "a racket designed to take $1.7 billion of taxpayer dollars out of the Treasury and pour it into a huge slush fund." Rep. Alexandria Ocasio-Cortez described the events as "outright corruption."

Democratic Senator Chris Van Hollen accused Trump of dropping a "bogus lawsuit" to create a fund to "pay off his political allies." Trump is expected to receive an apology from the IRS but no direct financial compensation.

Blanche will appoint four of five members of a commission to decide the merits of claims submitted to the fund. The Justice Department has not yet specified how recipients will be determined.

Source: www.dw.com