In a controversial move, President Donald Trump has secured a settlement with his own administration that grants sweeping immunity from tax crimes and establishes a nearly $1.8 billion compensation fund for his allies. Legal experts are sounding the alarm, calling the arrangement a blatant act of self-dealing that may violate federal law.
The Settlement Details
After suing the IRS for $10 billion, Trump received a one-page document signed by Acting Attorney General Todd Blanche that "forever" blocks the federal government from pursuing tax claims against the president, his family, and their businesses. The settlement also creates a $1.776 billion fund, managed by a five-member board appointed by Blanche, to compensate alleged "victims" of government "weaponization." Recipients' identities will remain secret, and Blanche has not ruled out payments to Trump's donors or allies.
Legal Experts React
UC Berkeley Law professor Brian Galle, a former federal prosecutor, stated: "There is a federal crime that prohibits exactly what the president did... to prevent a corrupt president from using the IRS to their own advantage." He added that this episode "would have brought down any other presidency."
Steve Wamhoff of the Institute on Taxation and Economic Policy noted: "The deal that Trump extracted from the government he leads is really a spectacular demonstration of the fact that there really are two sets of tax rules, one for those at the top, and another for the rest of us."
Congressional Response
Top Democrats on the House Judiciary and Ways and Means committees are pressing for answers. Reps. Jamie Raskin and Richard Neal wrote to Blanche and other officials, calling the settlement a "Super-Pardon" that frees Trump from accountability for tax dodging and other investigations. They introduced legislation to kill the compensation fund.
Legal Challenges
Retired Capitol Police officer Harry Dunn and officer Daniel Hodges filed a lawsuit against the fund, arguing it violates the 14th Amendment's prohibition against funding insurrectionists. The suit claims the fund sends a message that "those who enact violence in President Trump's name will not just avoid punishment... they will be rewarded with riches."
Public Citizen co-presidents Robert Weissman and Lisa Gilbert warned: "If Acting AG Todd Blanche tries to effectuate this settlement by directing the IRS to end audits... both he and Donald Trump will be violating the law."
Potential Criminal Exposure
Federal law prohibits the executive branch from requesting IRS termination of investigations. Galle emphasized: "It says what the president did this week was a crime." He advised anyone signing checks from the fund to "talk to a lawyer," as criminal penalties apply.
The White House referred inquiries to Trump's statements, where he claimed he was not involved in the settlement but supported reimbursing allies for legal fees and costs related to investigations.
