resolution

WASHINGTON — President Trump on Monday moved to withdraw his $10 billion lawsuit against the Internal Revenue Service over the leak of his tax returns after reports that his administration was poised to create a fund to compensate some of his allies.

The disclosure was made in a filing in federal court in Florida, where the lawsuit was filed last year.

ABC News first reported last week that Trump was prepared to drop his lawsuit as part of a deal that would create a $1.7 billion fund to pay allies of the president who believe they were wrongly investigated and prosecuted.

The court filing did not mention terms of any potential deal.

News that the Trump administration was contemplating a fund to pay Trump allies drew an immediate backlash from Democrats, including Rep. Jamie Raskin, who called the idea “unconstitutional.”

“This, of course, is a political grievance fund that Donald Trump can use to pay off his friends,” Raskin, the top Democrat on the House Judiciary Committee, said in an interview Sunday on ABC’s “This Week.”

“If these people have a valid cause of action, they should bring it to the court like every other American does, and use the system of due process, and proving things by clear and convincing evidence, or a preponderance of evidence, go and prove it. But the idea that Donald Trump can just pass it out like a pardon is absurd,” he added.

It was not immediately clear who precisely will stand to benefit from the fund but its creation reflects Trump’s long-running claims that the Biden administration Justice Department was weaponized against him.

He has cited as proof the since-dismissed criminal charges he faced between his first and second terms of conspiring to overturn the results of the 2020 presidential election he lost and of retaining classified documents at his Mar-a-Lago estate in Florida. Several aides of his were also prosecuted, as were hundreds of Trump supporters who stormed the U.S. Capitol on Jan. 6, 2021.

Merrick Garland, who served as attorney general during the Biden administration, has repeatedly denied allegations of politicization and has said his decisions followed facts, the evidence and the law. His Justice Department also investigated Biden for his handling of classified information and brought separate tax and gun prosecutions against Biden’s son Hunter.

Nonetheless, Trump’s current Justice Department has actively pursued the president’s retribution campaign and grievances, bringing criminal charges against some of his perceived adversaries and initiating a wide-ranging investigation that aims to establish a years-long conspiracy between law enforcement and intelligence officials to destroy Trump’s political prospects and keep him power.

No charges have been brought in that investigation and it is not clear that any ever will be.

Trump filed a lawsuit earlier this year in a Florida federal court, alleging that a previous leak of his and the Trump Organization’s confidential tax records caused “reputational and financial harm, public embarrassment, unfairly tarnished their business reputations, portrayed them in a false light, and negatively affected President Trump, and the other Plaintiffs’ public standing.”

The president’s sons, Donald Trump Jr. and Eric Trump, are also named plaintiffs in the suit.

Hussein, Tucker and Richer write for the Associated Press.

April 23 (UPI) — Senate Republicans were up all night voting, eventually adopting a budget reconciliation package Thursday morning to prepare to fund the Department of Homeland Security.

The Senate plans to fund the department without Democrats’ help. The resolution was adopted at around 3:30 a.m. EDT Thursday by a vote of 50-48 after about six hours.

The only Republicans to vote against the resolution were Sens. Lisa Murkowski, R-Alaska, and Rand Paul, R-Ky. The bill now goes to the House. If the House adopts the resolution, the final funding bill can be written and voted on by Congress.

They are following a deadline of June 1 set by President Donald Trump.

“We have a multistep process ahead of us, but at the end Republicans will have helped ensure that America’s borders are secure and prevented Democrats from defunding these important agencies,” said Senate Republican Leader John Thune, R-N.D.

Thune told fellow senators to keep the package narrow to ensure speedy passage.

Since the January deaths of Renee Good and Alex Pretti in Minnesota, both shot and killed by DHS officers, Democrats have refused to support funding the department without reforms. The department has been shut down since Feb, 14, though Trump told the department to use emergency funds to pay essential workers.

Just before the Easter recess, the Senate passed a bill that would fund most of DHS but not ICE and Border Patrol. But the House rejected it.

Republicans are hoping to fund the department through 2029 at a cost of between $70 and $80 billion.

The late-night vote-a-rama included votes about amendments that could be added to the resolution. Two Republican Senators who are vulnerable in the November elections — Sens. Susan Collins, R-Maine, and Dan Sullivan, R-Alaska — broke ranks on some amendments.

Collins and Sullivan voted for amendments to lower health care costs, to reverse last year’s Supplemental Nutrition Assistance Program cuts and to tackle insurance companies that delay or deny medical care. Sen. Josh Hawley, R-Mo., joined with Collins and Sullivan on the latter.

Sen. Bernie Sanders, I-Vt., also sponsored an amendment that would tell the budget committee chair to help cut prescription drug prices by half. Hawley, Collins and Sullivan supported Sanders on it. Sanders said his amendment would codify ensuring that Americans wouldn’t pay more for prescriptions than Canadians or Europeans.

The amendments wouldn’t have the power to force Republicans’ hands, but they would make Republicans go on record about their views of these items.

“This reconciliation, or this budget act, will show who’s on whose side, and clearly if Republicans vote against our amendments, they’re not on the side of the American people,” Democratic Leader Chuck Schumer, D-N.Y., said on the Senate floor.

Homeland Security Secretary Markwayne Mullin told Fox and Friends on Tuesday that the department will run out of money for salaries next month.

“I’ve got one payroll left, and there is no more emergency funds so the president can’t do another executive order because there’s no more money there,” The Hill reported he said.

The resolution does not include the SAVE America Act, the voter security bill that Trump and other Republicans have pushed for. Sen. John Kennedy, R-La., sponsored an amendment to add similar restrictions, but it failed 48-50. Collins, Murkowski, Sen. Thom Tillis, R-S.C., and Sen. Mitch McConnell, R-Ky., voted against it.

Court filings have indicated that lawyers for President Donald Trump are seeking a resolution with the Department of Justice over a $10bn lawsuit he filed against the Internal Revenue Service (IRS).

But the trouble, critics say, is that such a settlement would leave Trump essentially negotiating with an executive branch under his control.

Friday’s court filing, however, emphasises the efficiency of seeking a settlement.

In the document, Trump’s lawyers call for the case to be paused for 90 days to allow a resolution to be hammered out.

“This limited pause will neither prejudice the parties nor delay ultimate resolution,” the filing says. “Rather, the extension will promote judicial economy and allow the Parties to explore avenues that could narrow or resolve the issues efficiently.”

How did the case start?

The case stems from an incident that began in 2017, when a worker named Charles “Chaz” Littlejohn was re-hired as a contractor through the government consulting firm Booz Allen.

While working on IRS files, Littlejohn stole copies of Trump’s tax returns, which had been the source of prolonged public scrutiny.

Until Trump, every president since Richard Nixon had released their tax returns as a gesture of transparency. Trump, however, claimed he could not, citing ongoing audits.

The tax returns Littlejohn stole were ultimately released to the media, and in 2020, The New York Times released a series of articles that showed Trump paid no income taxes in 10 of the 15 preceding years.

Other years, he paid relatively small sums, like $750, because he reported more losses than gains. ProPublica also ran stories based on the leaked tax returns, highlighting inconsistencies and Trump’s low tax payments.

Privacy law protects taxpayer information from being released by the IRS without explicit permission. Littlejohn was sentenced to five years in prison in 2024.

But in late January of this year, Trump filed a lawsuit arguing that he, his businesses and his sons Eric and Donald Jr had suffered “significant and irreparable harm” from the leaks.

The defendants in the lawsuit were the IRS and its overseeing body, the Treasury Department, both of which are part of the executive branch.

“Defendants have caused Plaintiffs reputational and financial harm, public embarrassment, unfairly tarnished their business reputations, portrayed them in a false light, and negatively affected President Trump and the other Plaintiffs’ public standing,” the lawsuit reads.

Questions of ethics and legality

But experts have warned that the lawsuit contains flaws that would normally prompt the Justice Department, also under Trump’s control, to seek dismissal.

The lawsuit, for instance, arrives at its whopping $10bn sum by supposedly tallying up media references to Trump’s leaked tax returns.

However, experts say the formula for damages is calculated by the number of unauthorised disclosures by a government employee, not by media re-printings.

Then there is the question of Littlejohn’s employment status. He was an outside contractor, not a government employee.

Trump also has to contend with the two-year statute of limitations in the case. The lawsuit contends that “President Trump did not discover the numerous violations” of his tax returns until January 29, 2024.

But critics point out he had posted on social media about his tax information being “illegally obtained” as far back as 2020, when The New York Times published its series.

Opponents say the lawsuit should be dismissed or at least delayed until Trump is no longer president. Otherwise, they argue it represents a conflict of interest, with Trump fundamentally negotiating with his own administration for a payout.

Controlling ‘both sides of the litigation’

Trump himself has acknowledged that such a payment would “never look good”. But he has justified the sum by saying it would be donated to charity.

“Nobody would care because it’s going to go to numerous very good charities,” he said in February.

Even that, legal experts argue, could run afoul of the Emoluments Clause in the US Constitution, which prohibits the president from profiting off his position, apart from his salary.

Government watchdogs have attempted to stop a settlement from unfolding. On February 5, for instance, the group Democracy Forward filed an amicus brief arguing the court should act to prevent an abuse of power.

“This case is extraordinary because the President controls both sides of the litigation, which raises the prospect of collusive litigation tactics,” the brief explains.

“To treat this case like business as usual would threaten the integrity of the justice system and the important taxpayer and privacy protections at the heart of this case.”

But the $10bn IRS lawsuit is not the only case Trump is seeking to settle with his own government. In 2023 and 2024, Trump filed administrative complaints seeking compensation for federal investigations he considered to be unfair.

One complaint concerns an FBI investigation into alleged Russian interference in the 2016 election, and the other is about the FBI’s raid of Trump’s Mar-a-Lago estate after he refused a subpoena to return classified documents.

For those complaints, Trump is reportedly seeking additional damages to the tune of $230m.

WASHINGTON — Lawyers for President Trump are engaged in talks with the IRS to resolve a $10-billion lawsuit the president filed against his own tax collection agency over the leak of his tax information to news outlets between 2018 and 2020.

In a federal court filing Friday, Trump asks a judge to pause the case for 90 days while the two sides work to reach a settlement or resolution.

“This limited pause will neither prejudice the parties nor delay ultimate resolution,” the filing says. “Rather, the extension will promote judicial economy and allow the Parties to explore avenues that could narrow or resolve the issues efficiently.”

Tax and ethics experts say the lawsuit raises a plethora of legal and ethical questions, including the propriety of the leader of the executive branch pursuing scorched-earth litigation against the very government he oversees.

Earlier this year, Trump filed a lawsuit in a Florida federal court, alleging that a previous leak of his and the Trump Organization’s confidential tax records caused “reputational and financial harm, public embarrassment, unfairly tarnished their business reputations, portrayed them in a false light, and negatively affected President Trump, and the other Plaintiffs’ public standing.”

The president’s sons, Donald Trump Jr. and Eric Trump, are also plaintiffs in the suit.

In 2024, former IRS contractor Charles Edward Littlejohn, of Washington — who worked for Booz Allen Hamilton, a defense and national security tech firm — was sentenced to five years in prison after pleading guilty to leaking tax information about President Trump and others to two news outlets between 2018 and 2020.

The outlets were not named in the charging documents, but the description and time frame align with stories about Trump’s tax returns in the New York Times and reporting about wealthy Americans’ taxes in the nonprofit investigative journalism organization ProPublica. The 2020 New York Times report found Trump paid $750 in federal income tax the year he first entered the White House, and no income tax at all some years, thanks to reported colossal losses.

When asked in February how he would handle any potential damages from the case, Trump said, “I think what we’ll do is do something for charity.”

“We could make it a substantial amount,” he said at the time. “Nobody would care because it’s going to go to numerous very good charities.”

Several ethics watchdog groups have filed friend-of-the-court briefs challenging the president’s lawsuit.

The watchdog group Democracy Forward’s February filing states that the case is “extraordinary because the President controls both sides of the litigation, which raises the prospect of collusive litigation tactics,” and “the conflicts of interest make it uncertain whether the Department of Justice will zealously defend the public fisc in the same way that it has against other plaintiffs claiming damages for related events.”

Hussein writes for the Associated Press.