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"Never in American history has a president pursued corruption this brazenly or on such a colossal scale," wrote Reps. Jamie Raskin and Richard Neal.
Top Democrats on a pair of panels in the US House of Representatives on Wednesday demanded that Justice and Treasury department leaders answer for how they settled President Donald Trump's $10 billion "sham" lawsuit against the Internal Revenue Service over the leak of his tax records.
In their letter to acting Attorney General Todd Blanche, Treasury Secretary Scott Bessent, and IRS CEO Frank Bisignano, House Judiciary Committee Ranking Member Jamie Raskin (D-Md.) and Ways and Means Committee Ranking Member Richard Neal (D-Mass.) slammed the settlement as "one of the most brazen acts of public corruption and self-dealing in American history."
"Rather than protect the public fisc from obvious plunder, this DOJ and IRS caved," the lawmakers argued, condemning the creation of a $1.776 billion "Anti-Weaponization Fund" as a "taxpayer shakedown" intended to line the pockets of the president's allies, including pro-Trump rioters who stormed the US Capitol on January 6, 2021.
"This massive slush fund will be governed by a sham commission of the president's cronies," Raskin and Neal noted—and due to the terms of the agreement, "the public and members of Congress may never know who received payments."
CNN reported Tuesday that longtime Trump adviser and former administration official Michael Caputo has filed the first known claim, describing his family as "survivors of the illegal Russiagate investigations" and seeking $2.7 million.
"Congress and Congress alone has the power of the purse under the appropriations clause of the Constitution. But Congress never authorized or appropriated funds for a $1.776 billion political slush fund," the House Democrats stressed. "This settlement is a transparent attempt to circumvent the separation of powers and use the judgment fund for a scam Congress never contemplated: rewarding the president’s political allies at the expense of American taxpayers."
Additionally, under the settlement, the IRS is "forever barred" from pursuing any other actions against Trump and his relatives.
"Essentially, the federal government threw in a super-pardon for the president, his family, and related and affiliated entities, freeing them not only from any accountability for any taxes they may have dodged, but other pending federal criminal or civil investigations like insider trading, antitrust violations, false statements, or even sexual harassment," the lawmakers wrote.
Raskin and Neal called on the federal departments to "retain all documents, including both hard copies and electronically stored information (ESI), related to the settlement and establishment of the fund," including messages sent via "private email addresses, text messages, mobile applications (e.g., Signal), or other forms of electronic communications."
They also directed the agency leaders to send over the IRS memorandum on the settlement, other related records, and answers to their list of questions by next week, before Bessent’s scheduled appearance before the Ways and Means Committee.
Blanche was on Capitol Hill Tuesday to testify about the DOJ budget request. However, he faced various other questions, and attempted to counter Democrats' framing that, as Senate Appropriations Committee Vice Chair Patty Murray (Wash.) put it, Trump is using "tax dollars to set up a slush fund to enrich his own friends."
Sen. Chris Coons (D-Del.) questioned Blanche about public disclosures of payouts and measures to ensure Trump family members don't get any fund money, while Sen. Chris Van Hollen (D-Md.) asked about the eligibility of January 6 rioters, including those who assaulted Capitol Hill police or committed sex crimes against children.
A pair of police officers who helped defend the Capitol during the 2021 attack filed a lawsuit in federal court on Wednesday with the aim of dissolving the fund, arguing that "no statute authorizes its creation, the settlement on which it is premised is a corrupt sham, and its design violates the Constitution and federal law."
After the House Democrats' letter was released Wednesday morning, Raskin introduced the No Taxpayer-Funded Settlement Slush Funds Act of 2026 to block Trump's fund. He also moved to subpoena Blanche, Bisignano, Bessent, and other individuals involved in creating the fund: Associate Attorney General Stanley Woodward and Treasury Department General Counsel Brian Morrissey.
"Mr. Blanche orchestrated this outrageous slush fund as part of the settlement with Donald Trump, which was also signed by Mr. Woodward, and Mr. Bessent will oversee the payout of these funds. Mr. Bisignano signed off on this settlement for the IRS, and Brian Morrissey remarkably resigned as this deal was being announced," Raskin said. "These individuals all possess critical insights into Trump's self-dealing scheme with his own agencies to create this fund and reward his supporters and friends."
The Republican-controlled House Judiciary Committee rejected the proposed subpoenas in a party-line vote.
This article has been updated to include Rep. Jamie Raskin's bill and the results of the subpoena vote.
Senate Finance Committee Ranking Member Ron Wyden said that "my investigators have obtained alarming information pertaining to Long's conduct at the IRS that we have begun to investigate."
Less than two months after U.S. Senate Republicans confirmed Billy Long as head of the Internal Revenue Service, the scandal-plagued commissioner confirmed on Friday that he is leaving the IRS to serve as President Donald Trump's ambassador to Iceland.
U.S. Senate Finance Committee Ranking Member Ron Wyden (D-Ore.)—who opposed Long's IRS nomination with the rest of the chamber's Democrats—pledged in a Friday statement that a probe of the outgoing commissioner will continue.
"From the minute Trump announced Billy Long as his IRS pick it was obvious this would end badly, but every Senate Republican voted to confirm his nomination anyway," said Wyden. "He didn't even last two months on the job. Let's not forget that there wasn't a vacancy at the time Trump announced Long's nomination. Danny Werfel, a skilled leader with fans among Democrats and Republicans, had years left on his term."
The senator pointed out that "in just a handful of months, Trump and his crew have already gutted taxpayer service, weaponized IRS data against innocent taxpayers, and set us up for disaster when next year's filing season comes around. This is what Trump does—pick incompetent, unserious people for serious jobs, and sit back as the damage piles up."
"Billy Long left Congress a few years ago and went straight into the tax fraud industry, his only real experience in tax before his nomination," he added. "My investigators have obtained alarming information pertaining to Long's conduct at the IRS that we have begun to investigate, and that process will continue regardless of whether Trump stashes Long away in some foreign embassy."
The ouster was initially reported by The New York Times, which noted that "Treasury Secretary Scott Bessent will serve as acting commissioner until a permanent replacement takes office," according to a senior Trump administration official.
Long then confirmed the development on his personal social media account, saying that "it is a honor to serve my friend President Trump and I am excited to take on my new role as the ambassador to Iceland. I am thrilled to answer his call to service and deeply committed to advancing his bold agenda. Exciting times ahead!"
He later added a joke about Immigration and Customs Enforcement: "I saw where former Superman actor Dean Cain says he's joining ICE so I got all fired up and thought I'd do the same. So I called Donald Trump last night and told him I wanted to join ICE and I guess he thought I said Iceland? Oh well."
A spokesperson for Bessent's department, which includes the IRS, said in a statement: "Treasury thanks Commissioner Long for his commitment to public service and the American people. His zeal and enthusiasm to bring a fresh perspective to the federal government was evident in both the House of Representatives and as part of the Trump administration. A new candidate for commissioner will be announced at the appropriate time."
Long previously represented Missouri in the U.S. House, where Ways and Means Committee Ranking Member Richard Neal (D-Mass.) responded to the IRS commissioner's exit with a statement blasting Trump.
"We don't even need more details on Trump's latest scuttle to know how damaging his presidency has been for the IRS," Neal said. "With nearly a new commissioner each month and weakened customer service from his mass firings, the rampant instability comes at the expense of all who rely on it. One thing is for sure: Secretary Bessent should focus on his own job before collecting more responsibility."
Several critics, including Neal, highlighted that Long was preceded by several IRS leaders this year. As retired Adm. Mike Franken, a former Democratic U.S. Senate candidate from Iowa, put it on social media: "IRS Commissioner Billy Long is removed, the sixth change this year, by the guy who only hires 'the very best people.' The clown show continues."
Long's firing prompted widespread speculation that he was leaving the IRS because he refused to comply with an order from the president. Journalist Josh Marshall wondered, "How bad did the ask have to be for a Trumpy sleazebag like Billy Long to say no?"
"Despite their repeated claims they wanted to protect Social Security, the Trump administration said the quiet part out loud," said one critic in response to the billionaire treasury secretary's candid comments.
U.S. Treasury Secretary Scott Bessent on Wednesday admitted that a provision in Republicans' One Big Beautiful Bill Act is a mechanism for privatizing Social Security—something President Donald Trump has repeatedly said he won't do.
Speaking at a policy event hosted by the far-right news site Breitbart, Bessent touted the so-called "Trump accounts" available to all U.S. citizen children starting next July under the OBBBA signed by the president earlier this month.
"In a way, it is a backdoor way for privatizing Social Security," the billionaire former hedge fund manager said of the accounts. "Social Security is a defined benefit plan paid out—that to the extent that if all of a sudden these accounts grow, and you have in the hundreds of thousands of dollars for your retirement, that's a game-changer."
Responding to Bessent's admission, Tim Hogan—the Democratic National Committee senior adviser for messaging, mobilization, and strategy—said that the treasury secretary "just said the quiet part out loud: The administration is scheming to privatize Social Security."
"It wasn't enough to kick millions of people off their healthcare and take food away from hungry kids," Hogan added. "Trump is now coming after American seniors with a 'backdoor' scam to take away the benefits they earned. Democrats won't stand by as Trump screws over working families in order to give more handouts to billionaires."
House Ways and Means Committee Ranking Member Richard Neal (D-Mass.) said in a statement: "Today, the treasury secretary said the quiet part out loud: Republicans' ultimate goal is to privatize Social Security, and there isn't a backdoor they won't try to make Wall Street's dream a reality. For everyone else though, it's yet another warning sign that they cannot be trusted to safeguard the program millions rely on and have paid into over a lifetime of work."
Nancy Altman, president of the advocacy group Social Security Works, mocked Trump's promises to preserve the key program upon which more than 70 million Americans rely—and called him out for eviscerating the Social Security Administration (SSA).
"So much for Donald Trump's campaign promise to protect Social Security," Altman said in a statement. "First, he gave Elon Musk the power to gut SSA. Now, Trump's treasury secretary has said the quiet part out loud. He is bragging about the administration's goal to privatize Social Security."
"First, they are undermining public confidence in Social Security by making false claims about fraud (which is virtually nonexistent) and wrecking the system's service to the public," Altman continued. "Then, once they have broken Social Security, they will say that Wall Street needs to come in and save it."
"That is a terrible idea," she added. "Unlike private savings, Social Security is a guaranteed earned benefit that you can't outlive. It has stood strong through wars, recessions, and pandemics. The American people have a message for Trump and Bessent: Keep Wall Street's hands off our Social Security!"
Alliance for Retired Americans executive director Richard Fiesta said that "Bessent let the cat out of the bag: This administration is coming for Social Security."
"We're not surprised—but we are alarmed because this administration has already taken multiple steps to weaken and dismantle Social Security," Fiesta added, highlighting the weakening of the SSA, false fraud claims, and "the massive tax breaks to the wealthy and corporations" under the OBBBA that experts say will hasten the Social Security Trust Fund's insolvency.
The progressive watchdog Accountable.US called Bessent's remarks "a shocking confession."
"Despite their repeated claims they wanted to protect Social Security, the Trump administration said the quiet part out loud: The Big Ugly Betrayal is a backdoor way to privatize Social Security," Accountable.US executive director Tony Carrk said in a statement.
"Once again the administration is risking the financial security of millions of Americans in order to protect a system rigged in the favor of big corporations and billionaires," Carrk added.
In another blow to Social Security recipients, the Trump administration is set to implement a new policy next month that is expected to further increase wait times for basic services. As Common Dreams reported Wednesday, starting in mid-August, SSA will no longer allow seniors to use their phones for routine tasks they've been able to perform for decades.