In January 2026, Trump, two of his sons, and the Trump Organization sued the IRS for $10 billion over a contractor’s leak of his tax returns, a case in which he was both the plaintiff and, as president, head of the agency he was suing. Todd Blanche, then his acting attorney general, settled it: a $1.776 billion “anti-weaponization” fund to pay people who claim the government targeted them, a pool critics in both parties said could reach January 6 rioters, plus a permanent bar on the IRS pursuing tax claims against Trump, his sons, or his companies. Two Republican senators, John Cornyn and Thom Tillis, held up his confirmation over it, with Tillis calling the fund “horrible policy and horrible politics” until Blanche vowed in writing to scrap it; both then relented, and the Senate confirmed him on August 8. Then 35 former federal judges appointed by presidents of both parties moved to reopen the case as “collusion” and “a fraud on the court.” A judge agreed, found the suit was “brought to manipulate the judicial process,” sanctioned Trump’s lawyers, and halted the fund. The tax immunity remains.
SourcesA judge finds collusion and sanctions his lawyers (The Hill) · 35 former judges of both parties call it a fraud on the court (CNN) · Republicans held up his AG confirmation over it (Axios) · The fund halted; the tax immunity remains (CBS News) · Confirmed 50-49 on Aug. 8, 2026 (NBC News)
Named hereTodd Blanche
