Trump’s $1.776 billion IRS settlement sparks debate as critics question legality of the compensation fund

President Donald Trump's $1.776 billion settlement with the IRS, which includes a fund for victims of alleged political "weaponization" and a provision barring future audits, has sparked intense debate. Critics, including Congressional Democrats and watchdog groups, have derided the Anti-Weaponization Fund as a slush fund to steer taxpayer dollars to Trump's allies and have called the tax immunity agreement illegal. Two police officers who defended the U.S. Capitol on January 6, 2021, have already sued, alleging the fund will reward and empower rioters who have harassed them. Legal experts say opponents face high hurdles in challenging the fund, particularly because Trump dismissed his $10 billion lawsuit against the IRS before the settlement was announced, effectively removing the venue for judicial review. The Justice Department announced the fund on Monday, shortly after Trump voluntarily withdrew his lawsuit accusing the IRS of wrongdoing in media leaks of his tax returns. The fund, controlled by Trump allies and financed from the Judgment Fund, will compensate people who claim to have been damaged by U.S. government "weaponization or lawfare." While the Justice Department cited a precedent for similar funds, opponents argue the settlement violates the U.S. Constitution's Appropriations Clause because Congress did not authorize it. Legal experts also question whether the fund violates a U.S. law governing the Judgment Fund if payments are made to people with no pending or imminent claims against the federal government.

(Source：The Economic Times)