President Donald Trump has reached a settlement with the Internal Revenue Service and the Justice Department over the leak of his tax returns, according to CBS News.
Under the agreement, Trump, his sons and the Trump Organization will receive a formal apology but no direct financial compensation.
Instead, Acting Attorney General Todd Blanche announced the creation of a $1.776 billion “Anti-Weaponization Fund” to review claims from individuals alleging unfair government targeting or “lawfare.”
President Trump settled his $10 billion lawsuit against the IRS in exchange for a $1.8 billion fund to compensate those who claim they were targets of government "weaponization." https://t.co/M5vtN48XeG
— Axios (@axios) May 18, 2026
The lawsuit, initially filed for $10 billion, accused federal agencies of failing to protect confidential tax records that were leaked in 2020 by a former IRS contractor. The report said the settlement also resolves additional administrative claims Trump made against the Justice Department.
According to the Justice Department, a five-member commission appointed by the attorney general will oversee the fund through late 2028. Meanwhile, dozens of House Democrats criticized the agreement, arguing it could improperly benefit Trump allies using taxpayer resources.
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