Trump’s Taxpayer-Funded Plan
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President Trump has dropped his $10 billion lawsuit against the IRS after a federal judge questioned whether the case was even legitimate, given that Trump controls both the plaintiff and the defense. In a stunning reversal, the Justice Department has instead created a $1.776 billion taxpayer-funded 'compensation fund' for victims of 'weaponization' and 'lawfare'—a move that has ignited bipartisan outrage. The fund, drawn from the Judgment Fund, will be administered by five appointees of acting Attorney General Todd Blanche, Trump’s former personal lawyer, who will decide who receives payouts with almost no public oversight. Among those potentially eligible: the nearly 1,600 January 6th rioters Trump previously pardoned, raising alarms about rewarding convicted criminals with public money. While Blanche claims the fund is open to all, regardless of politics, critics see it as a politically driven slush fund designed to reward Trump’s allies. The administration has also agreed to drop all IRS audits of Trump, his family, and his businesses—potentially saving him tens of millions in taxes. Ethics experts have called this the most corrupt act in American history, marking a dangerous shift from political retribution to direct taxpayer-funded reward for loyalty.
Trump dropped his $10 billion lawsuit against the IRS after a judge questioned its legitimacy due to his control over both sides of the case.
A $1.776 billion taxpayer-funded 'compensation fund' was created to pay victims of 'weaponization' and 'lawfare', administered by five appointees of Trump’s former personal lawyer.
Nearly 1,600 January 6th rioters, including those pardoned by Trump, could qualify for payouts, sparking bipartisan outrage over rewarding convicted criminals.
The Justice Department agreed to drop all IRS audits of Trump, his family, and his businesses—potentially saving him tens of millions in taxes.
The fund has no public transparency, no clear criteria for eligibility, and no limits on payout amounts, raising major concerns about abuse and corruption.
…and 3 more takeaways available in PodZeus
Intro: Wirecutter and The Daily
A brief ad for Wirecutter's headphone testing process is followed by the introduction of The Daily, setting the stage for the main story on Trump’s legal maneuvering.
Trump Drops Lawsuit Amid Legal Paradox
“There's a legal principle that the two sides in a lawsuit have to actually be in conflict with each other, that you can't sue yourself or sue your friend and hope to go manufacture a favorable legal ruling from a judge that will benefit both sides.”
The Birth of a $1.776 Billion Slush Fund
“This is a huge amount of money that will be drawn from an account called the Judgment Fund, which is basically a pot of money that the Justice Department can use to settle legal claims against the United States.”
Eligibility: January 6th Rioters and Political Allies
“We are talking about in some cases convicted criminals who could theoretically get money from a government that they attacked.”
Bipartisan Outrage and Congressional Pushback
“This is an outrageous, unprecedented slush fund... Every American can see through this illegal, corrupt self-dealing scheme.”
“We are talking about in some cases convicted criminals who could theoretically get money from a government that they attacked.”
“This has robbed the IRS of the opportunity to demand that the Trumps pay the taxes that the IRS says that they may owe under the law. And this could deliver a sizable financial benefit to him.”
“There's a legal principle that the two sides in a lawsuit have to actually be in conflict with each other, that you can't sue yourself or sue your friend and hope to go manufacture a favorable legal ruling from a judge that will benefit both sides.”
Host
Guest
Donald Trump
person
Justice Department
organization
IRS
organization
Andy Duren
person
January 6th Capitol insurrection
other
Todd Blanche
person
Judgment Fund
organization
Charles Littlejohn
person
The New York Times
organization
Senator Chris Van Hollen
person
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