Trump Appeals IRS Lawsuit Ruling as DOJ Settlement Fight Threatens Blanche Nomination
President Trump’s administration has appealed a federal judge’s ruling that accused Trump and Justice Department officials of using a $10 billion IRS lawsuit to pursue benefits through a settlement that the court said lacked real legal conflict.
The appeal keeps alive one of the most unusual legal fights of Trump’s second term. The lawsuit accused the IRS and Treasury Department of failing to protect Trump’s tax information after earlier leaks. But U.S. District Judge Kathleen Williams ruled that the case did not operate like ordinary litigation because Trump was suing agencies inside the executive branch he controls.
The disputed settlement was tied to a proposed $1.776 billion Anti-Weaponization Fund, which the court said would have been financed through the Treasury Department’s Judgment Fund. The judge also described a release order signed by Acting Attorney General Todd Blanche that purported to shield Trump, relatives, businesses and affiliates from a wide range of claims and investigations.
Subscribe free for daily political analysis they won’t broadcast. Join 110K+ readers →
In plain English, the issue is whether a president can use a lawsuit against his own government to create taxpayer-funded benefits and legal protections without a genuine opposing party in court. Williams wrote that there was “never adverseness” between the parties and “never a case or controversy.”
The appeal also collides with Blanche’s attorney general nomination. AP reported that Republican Sens. John Cornyn and Thom Tillis are demanding written assurances that the fund will not move forward and that tax-audit protections will be limited.
Social reaction is already strong. A Reddit law thread on the appeal showed more than 9,700 upvotes, with discussion focused on the court’s finding of collusion, the fund, and whether the arrangement amounted to self-dealing.
Subscribe free for daily political analysis they won’t broadcast. Join 110K+ readers →