President Donald Trump has dropped his $10 billion lawsuit against the Internal Revenue Service, according to court filings released Monday.
The dismissal comes as the administration discusses creating a proposed $1.8 billion compensation fund for individuals who believe they were unfairly investigated by federal agencies under previous administrations, CNN reported.
Trump, along with sons Donald Trump Jr. and Eric Trump, sued the IRS and Treasury Department earlier this year over the leak of Trump’s tax records during his first presidency. Former IRS contractor Charles Littlejohn was previously sentenced to prison for leaking tax information.
🚨 JUST IN: President Trump is DROPPING his $10 billion lawsuit against the Internal Revenue Service in exchange for a $1.776 billion COMPENSAITON FUND for those wrongly targeted and prosecuted by the Biden admin — ABC
— Eric Daugherty (@EricLDaugh) May 18, 2026
47 scoring ANOTHER WIN! 🔥
And he did it for Americans who… pic.twitter.com/YnFYJ0u6KY
Court documents showed Trump dismissed the lawsuit “with prejudice,” meaning it cannot be refiled.
The report said the case had already faced legal scrutiny, with a federal judge questioning whether a sitting president should seek personal monetary damages from an agency within his own administration.
House Democrats criticized the move, calling it potential “self-dealing” and urging closer judicial review.
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