President Trump is set to drop his 10 billion lawsuit against the IRS.In its place,the administration is advancing a 1.7 billion compensation fund for Americans who say they were wrongly targeted and prosecuted during the Biden years.
Sources tell ABC News the deal resolves a suit filed after a government contractor leaked Trump’s tax records — and those of other wealthy individuals — to the media in 2019 and 2020. The proposed Truth and Justice Commission would review claims of government weaponization, with the distinctive funding figure nodding to the nation’s founding year.
The move has drawn sharp criticism from Democrats, who call it a taxpayer-funded payout to political allies and January 6th defendants. Supporters see it as overdue accountability for those caught in what they describe as selective enforcement.
Negotiations continue ahead of an upcoming court deadline. This development marks another early test of how the second Trump administration handles past legal battles and taxpayer resources.
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