Donald Trump's latest scheme has been branded as potentially the most corrupt act in American history, as he settles a lawsuit with the IRS to create a billion-dollar 'slush fund' for his allies and those involved in the January 6 insurrection.
Days before a judge was expected to throw out his lawsuit, Trump decided to settle out of court with himself, a move that has drawn comparisons to Watergate. The settlement involves $1.7 billion, which will be used to compensate individuals Trump believes were wronged by the Justice Department during and after his first term.
The Lawsuit and Settlement
Earlier this year, Trump sued the IRS over the unauthorized release of his tax records during his first term. The whistleblower is already serving a 5-year prison sentence. Trump sought $10 billion in damages, an amount critics call absurd. As president, Trump oversees the IRS and the Justice Department, placing him on both sides of the case.
The judge gave the parties until this week to explain how they are in opposition. With the deadline approaching, they settled for $1.7 billion. Trump previously argued he would not siphon money from the treasury, claiming he would give it to charity. Now, the plan is to create a fund to pay compensation to those convicted of crimes related to the January 6 insurrection, including those who violently assaulted police officers, who were later pardoned by Trump.
How the Fund Will Operate
The fund will be managed by a six-person board. Five members will be appointed by the Attorney General, currently Todd Blanche, Trump's former personal lawyer. The sixth member will be chosen in consultation with congressional leadership, but the president can remove any member at any time. There is no requirement for oversight or public disclosure of payouts.
The House Judiciary Committee has called it 'pure fraud and highway robbery,' arguing that no one can be both plaintiff and defendant in the same case. Government watchdog group CREW's president, Donald Sherman, described it as 'one of the single most corrupt acts in American history.' MSNBC's Ari Melber said it was 'worse than Watergate.'
Scale and Symbolism
To put the scale into perspective, a recent fraud case involving siphoning $1.1 billion from social services funds led to a violent ICE invasion in Minnesota, resulting in two deaths. Trump's slush fund is $1.776 billion, a figure that echoes the year of the American Revolution, 1776. This is seen as a dog whistle to January 6 participants, signaling that they are patriots and that committing crimes for Trump will be rewarded.
Critics fear that if Trump has no intention of leaving office at the end of his term, this could be far worse than mere corruption. The fund effectively rewards those who tried to overturn a legitimate election, undermining the rule of law.
