---
title: "Trump Drops $10 Billion IRS Lawsuit with Creation of 'Anti-Weaponization Fund'"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/286803618.md"
description: "The Trump Organization has dropped its $10 billion lawsuit against the IRS in exchange for a $1.776 billion 'anti-weaponization fund' aimed at compensating victims of lawfare. House Democrats oppose the fund, calling it corrupt, and have filed a motion to block it. The fund will be financed through the DOJ's judgment fund and will cease handling claims by December 15, 2028."
datetime: "2026-05-18T17:28:47.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/286803618.md)
  - [en](https://longbridge.com/en/news/286803618.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/286803618.md)
---

# Trump Drops $10 Billion IRS Lawsuit with Creation of 'Anti-Weaponization Fund'

The Justice Department announced on Monday that the Trump Organization will drop its $10 billion lawsuit against the IRS in exchange for the creation of a $1.776 billion "anti-weaponization fund." The lawsuit centered around an IRS employee leaking President Trump's 2019 and 2020 tax records.

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The fund will allow "victims of lawfare and weaponization" to file claims to receive monetary compensation and formal apologies. This could include January 6 rioters pardoned by Trump.

## **House Democrats Oppose Anti-Weaponization Fund**

House Democrats criticized the move, with Rep. Joe Neguse labeling it as "one of the most brazen examples of corruption we've seen from this administration." The House Democrats' Litigation Task Force has already filed a motion to block the fund.

The fund will be financed through the DOJ's judgment fund, a permanent funding source the department uses to settle claims and pay legal judgments. The DOJ said the new fund will stop handling claims by December 15, 2028 at the latest.

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