The U.S. government will permanently drop tax claims against President Donald Trump, according to a settlement document that is part of a deal to resolve Trump’s $10 billion lawsuit against the Internal Revenue Service over the leak of his tax returns.
As part of the settlement agreement, the U.S. is “forever barred and precluded” from examining or prosecuting Trump, his sons and the Trump organization’s current tax issues, according to a one-page document posted to the Justice Department’s website on Tuesday.
The settlement, which marks an extraordinary use of executive power, goes beyond resolving litigation and effectively helps shield the president from further examination of his finances and legal conduct.
The White House referred Associated Press inquiries to the Justice Department, and the U.S. Treasury did not respond to Associated Press requests for comment.
The settlement refers only to existing audits, not future examinations, the Justice Department said in response to a request for comment on the expanded settlement.
The move comes after the Trump administration announced Monday the creation of a nearly $1.8 billion fund to compensate allies of the Republican president who believe they have been unjustly investigated and prosecuted, an arrangement that Democrats and government watchdogs derided as “corrupt” and unconstitutional.
The “Anti-Weaponization Fund” of $1.776 billion will allow people who believe they were targeted for prosecution for political purposes, including by the Biden administration Justice Department, to apply for payouts, creating what acting Attorney General Todd Blanche called “a lawful process for victims of lawfare and weaponization to be heard and seek redress.”
Blanche, who was grilled by lawmakers on Capitol Hill on Tuesday, would not rule out the possibility that people who carried out violence during the Jan. 6, 2021, riot at the U.S. Capitol will be considered for payouts from the new fund.
Democratic lawmakers and ethics watchdogs slammed the creation of the fund, saying it was corrupt, opaque and had the potential to become a “slush fund” for the president and his allies. Even Republican lawmakers have expressed signs of discomfort about the fund’s creation, including Senate Majority Leader John Thune, who told reporters that he’s “not a big fan.”