The Justice Department announced a $1.776 billion Anti-Weaponization Fund on Monday as part of a settlement with President Donald Trump, then issued a separate order Tuesday barring the federal government from pursuing certain reviews, claims, or examinations involving past tax filings by Trump, his family, and related entities.
The one-page order, signed by Acting Attorney General Todd Blanche on May 19, says the United States “RELEASES, WAIVES, ACQUITS, and FOREVER DISCHARGES” the plaintiffs and is “FOREVER BARRED and PRECLUDED” from pursuing claims, requests for relief, “examinations or similar or related reviews,” and other matters tied to the settlement.
The order bars the United States from pursuing covered matters against Trump, related or affiliated individuals, family members, trusts, parent, sister, or related companies, affiliates, and subsidiaries, including matters the government previously raised or could have raised. It also references tax returns filed before the May 18 effective date of the settlement.
Settlement Creates Anti-Weaponization Fund
The order came one day after the Justice Department announced the creation of a $1.776 billion Anti-Weaponization Fund as part of a settlement in Trump v. Internal Revenue Service.
Trump, Donald Trump Jr., Eric Trump, and the Trump Organization filed the underlying lawsuit against the IRS and Treasury Department after former IRS contractor Charles Littlejohn illegally obtained and disclosed Trump tax information to media outlets, according to the settlement agreement.
Under the settlement, Trump and the named plaintiffs will receive a formal apology from the United States but “will not receive any monetary payment or damages of any kind.”
The settlement also resolves two pending administrative claims by Trump tied to the Mar-a-Lago search and the 2016 Russia investigation.
Fund Designed For Future Claimants
The May 18 attorney general order says the United States must provide the Treasury Department with documents needed to direct a $1.776 billion payment into a designated account for the fund within 60 days of the settlement’s effective date.
The order says the fund’s corpus “does not represent the value of any claim by Plaintiffs, but rather is based on the projected valuation of future claimants’ claims.”
The fund will consist of five members. The president may remove any member without cause, according to the settlement.
Claims Process And Reporting
The fund may issue formal apologies, provide monetary relief, grant or deny claims, defer review of claims, and request evidence or other support for claims.
Claimants can include entities. A claimant who accepts relief from the fund must forgo other relief, including judicial relief, according to the agreement.
The settlement says the fund must submit confidential quarterly reports to the attorney general listing the name and address of each claimant who received relief and the nature of that relief.
The fund must stop processing claims no later than December 1, 2028. Any remaining balance after December 15, 2028, must be transferred before January 1, 2029, to a federal account designated by the president.
Legal Basis Draws Scrutiny
The Justice Department order cited the Keepseagle case as precedent, saying the Obama administration settled that case by establishing an administrative claims process funded by $680 million from the judgment fund.
The settlement has drawn criticism from Democrats and some Republicans, who have questioned the fund’s structure, transparency, and legal basis.
