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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.
"Every time Palestinians and their supporters organize internationally, Washington reaches for the terrorism label to shut them down," said one critic.
Palestine defenders decried Tuesday's announcement by the Trump administration of US sanctions targeting four nonviolent campaigners involved in the recent humanitarian flotillas that tried to break Israel's illegal siege of Gaza.
The US Department of the Treasury said in a statement that its Office of Foreign Assets Control "is taking action against four individuals associated with the pro-Hamas flotilla organized by the US-designated Popular Conference for Palestinians Abroad (PCPA) that is attempting to access Gaza in support of Hamas."
The sanctioned individuals are Saif Abu Keshek, a Palestinian with Spanish and Swedish citizenship and PCPA leader who helped organize and lead Global Sumud Flotilla (GSF) missions; Jordan-based PCPA president Hisham Abdallah Sulayman Abu Mahfuz; Mohammed Khatib, who is based in Belgium and is the European coordinator for Samidoun, the Palestinian Prisoner Solidarity Network; and Jaldia Abubakra Aueda, Samidoun's coordinator in Madrid.
“The pro-terror flotilla attempting to reach Gaza is a ludicrous attempt to undermine President [Donald] Trump’s successful progress toward lasting peace in the region," Treasury Secretary Scott Bessent said in a statement Tuesday. “Treasury will continue to sever Hamas’ global financial support networks, no matter where in the world they are.”
There is no substantiated evidence that the Gaza flotillas are linked to Hamas. Meanwhile, United Nations experts, numerous national governments, human rights groups, and experts say Israel is perpetrating genocide, apartheid, colonization, occupation, and ethnic cleansing against Palestinians.
Samidoun called the sanctions—which freeze any of the targets' US assets and ban Americans from doing business with them—“the latest manifestation of the ongoing US genocidal war on the Palestinian people" and pointed to Israel's ongoing violent interception and seizure of GSF vessels on the high seas off the coast of Gaza.
“Today’s sanctions by the US come hand-in-hand with today’s Israeli piracy of the Global Sumud Flotilla and the Freedom Flotilla, and the abduction of hundreds of international activists at sea,” the group said in a statement. “All of these sanctions targeting Palestinian organizations, not only those targeting us, are aiding and abetting genocide."
Since the Hamas-led attack of October 7, 2023, the Biden and Trump administrations have supported Israel with tens of billions of dollars worth of armed aid and diplomatic cover, including vetoes of numerous United Nations Security Council Gaza ceasefire resolutions. Total US financial support for Israel since it was founded in 1948—largely via the ethnic cleansing of Palestinian Arabs—is approaching $300 billion in inflation-adjusted dollars.
Since returning to office, Trump has cracked down on pro-Palestinian activists, students, organizations, and foreign nationals. Critics—including advocacy groups, academics, and some judges—have condemned what they have called attacks on free speech, association, and academic freedom.
The Trump administration has sanctioned International Criminal Court Prosecutor Karim Khan and other numerous other ICC jurists after the Hague-based tribunal issued warrants for the arrest of Israeli Prime Minister Benjamin Netanyahu and former Defense Minister Yoav Gallant for alleged war crimes and crimes against humanity in Gaza. The ICC also issued arrest warrants for three Hamas leaders who were killed by Israeli attacks.
On Tuesday, far-right Israeli Finance Minister Bezalel Smotrich said that the ICC is also seeking his arrest, and that he would "fight back" by ordering the ethnic cleansing of hundreds of Palestinians from their homes in the illegally occupied West Bank.
The US administration has also sanctioned independent UN Palestine expert Francesca Albanese and her family—a move that was temporarily blocked earlier this month by a federal judge who asserted that the Italian humanitarian "has done nothing more than speak."
“Every time Palestinians and their supporters organize internationally, Washington reaches for the terrorism label to shut them down," Isabelle Hayslip, advocacy manager at Democracy for the Arab World Now, told Al Jazeera on Tuesday. "The net keeps widening. Palestinian diaspora communities now live under constant threat of designation for demanding their rights.”
Sen. Maggie Hassan said that while paying back businesses hit by Trump’s illegal tariffs, the administration “refuses to provide relief for families.”
American families could pay a combined $330 billion this year as a result of President Donald Trump's aggressive tariff policy, according to a report released Friday by the Democratic minority on the Joint Economic Committee in Congress.
Although the Supreme Court ruled Trump's use of emergency powers to pass sweeping tariffs illegal last month, US Treasury Secretary Scott Bessent has said the government is expected to bring in "virtually unchanged tariff revenue in 2026" compared with the previous year, as Trump has continued to enact new tariffs using different legal authorities in hopes of getting around the high court's ruling.
If Bessent's projection holds true, the committee's Democrats estimated that the average US household would pay more than $2,500 in tariff costs this year, a considerable increase from the more than $1,700 the committee found Americans paid in 2025.
The minority said it reached its findings based on official data on the amount of tariff revenue collected by the Treasury since 2025 combined with independent research from the nonpartisan Congressional Budget Office (CBO), which found last month that only about 5% of tariff costs are borne by foreign entities. About 30% is taken on by domestic companies, and the remaining 65% is passed on to consumers.
There is already somewhat of an answer in the works for businesses to recoup the illegal duties they've had to pay. Earlier this month, the US Court of International Trade (CIT) ruled that the Treasury Department and Customs and Border Protection must return $166 billion to around 330,000 importers hit by tariffs, including thousands of companies that have filed lawsuits seeking to recover their money.
However, the Trump administration has said it could take more than 4.4 million hours to process all refund requests for more than 53 million entries subject to the now-illegal tariffs.
On Thursday, Brandon Lord, an official with US Customs and Border Protection responsible for tariff collections, informed the court that CBP is about 40-80% done creating a system that will allow importers and brokers to submit refund requests. He said in a filing last week that it could be operational as soon as mid-April.
But Sen. Maggie Hassan (D-NH), the ranking member of the joint committee, lamented on Friday that while businesses are going to be reimbursed with interest, "the Trump administration refuses to provide relief for families" and is instead "choosing to institute new tariffs that will push prices even higher.”
On Thursday, Sen. Martin Heinrich (D-NM), another committee member, introduced a bill to create a new tax rebate for individuals and families hit by tariffs.
The so-called "Working Families Refund" would provide a $600 rebate to individuals earning $90,000 or less annually and to head-of-household filers earning $120,000 or less. Joint filers earning $180,000 or less per year would receive a $1,200 rebate. Each family would also receive an additional $600 for each dependent child.
"This is money that belongs to working families—not the CEOs of Walmart or Amazon or any other big corporation,” Heinrich said.
Trump has pressed ahead with his tariffs despite their rising unpopularity. In an NBC News poll last week, 55% of voters said the tariffs have hurt the economy, while just 33% said they have helped. And as his newly launched war with Iran has heightened economic instability, 62% of voters said they disapproved of his handling of inflation and the cost of living.
Seeking to stop Trump from squeezing a political win out of his policy's failure, Heinrich's bill also forbids the president from putting his own name on the tariff rebate checks, as he famously did with Covid-19 stimulus checks sent months before the 2020 election.
“The president may call the affordability crisis a ‘hoax,’ but working people feel it every time they pay for groceries or everyday essentials," Heinrich said. "This bill will return the money lost to Trump’s tariffs back to the people who paid the price.”
Republican senators said they were seeking to end an "unfair inflation tax on everyday Americans." But nearly all the benefits of their proposal would go to the wealthiest 1%.
Two leading Republicans are pushing for the Trump administration to issue another $200 billion tax cut, primarily to the wealthiest Americans, without congressional approval.
The Washington Post reported Tuesday that Sens. Ted Cruz (R-Texas) and Tim Scott (R-SC) sent a letter to Treasury Secretary Scott Bessent urging him to use executive authority to lower the federal tax on capital gains—the profits from selling stocks, bonds, real estate, and other investments.
The senators have proposed that capital gains taxes should be “indexed for inflation." As the Post explained:
The plan pushed by Cruz and Scott has been sought by conservatives for many years. Under current law, an investor who bought $100 worth of stock in 1990 and sold it today for $300 would currently owe capital gains taxes on the full $200 in profit. But the $100 investment in 1990 would be worth roughly $230 in today’s dollars after accounting for inflation. Under the Cruz-Scott proposal, the investor would only owe taxes on that $70, rather than the full $200.
The senators called on Bessent to "eliminate" this "unfair inflation tax on everyday Americans."
According to Federal Reserve data from 2025, the richest 1% of Americans owned about half of all stocks, while the poorest 50% owned only 1%.
Republicans' so-called One Big Beautiful Bill Act (OBBBA), which enacted massive cuts to social programs like Medicaid and the Supplemental Nutrition Assistance Program (SNAP) last summer, is already estimated to funnel more than $1 trillion to the top 1% of earners over the next 10 years, according to the Institute on Taxation and Economic Policy.
It is unclear whether Bessent would even have the power to change how gains are taxed without an act of Congress, or if Bessent has any interest in doing so. But the vast majority of the benefits from Cruz and Scott's proposal, if enacted, would likely go to the rich as well.
When the Trump administration first considered indexing capital gains taxes to inflation back in 2018, the Penn Wharton Budget Model projected that 63% of the benefits would flow to the richest 0.1%—those making tens of millions per year—while 86% would go to the top 1%.
Those in the bottom 90% of earners would see just over 2% of the overall benefits, with those in the bottom half receiving basically nothing.
According to the Post, the senators view lowering capital gains taxes as part of a GOP bid to "improve its economic approval rating with voters ahead of the 2026 midterm elections," in which the party is expected to take a walloping, according to current polls.
Voters have not responded kindly to previous bills that handed lavish tax breaks to the rich. At the time of its passage, the OBBBA was one of the least popular pieces of legislation in modern history, with several polls showing nearly a 2-to-1 disapproval rating.
But Cruz and Scott are pushing for this policy change despite the public revulsion and the fact that the Department of Justice has previously ruled that the Treasury Department can't make policy without Congress' approval.
"Ted Cruz is asking the Treasury Department to break the law to give another round of tax breaks to the ultrarich," remarked Sen. Ron Wyden (D-Ore.), the ranking member of the Senate Finance Committee. "These guys can't help themselves."
"Our government should be accountable to the people, not the whims of a power-hungry executive," said one Common Cause campaigner.
Less than a week after a court filing revealed that President Donald Trump is suing his own Treasury Department and Internal Revenue Service for $10 billion over the leak of his tax returns during his first term, former federal officials and watchdog groups on Thursday called out his attempt to abuse "powerful tools for holding government accountable."
The legal group Democracy Forward filed a friend-of-the-court brief on behalf of Common Cause, the Project On Government Oversight, ex-IRS Commissioner John Koskinen, former National Taxpayer Advocate Nina Olson, and Kathryn Keneally and Gilbert Rothenberg, who both held leadership roles in the US Department of Justice's Tax Division.
"This case is extraordinary because the president controls both sides of the litigation, which raises the prospect of collusive litigation tactics," states the amicus brief. "Collusive litigation threatens the integrity of the judicial process by risking the court's entanglement in an illegitimate proceeding. And although the complaint has significant defects—it was filed too late, against the wrong party, and for an unsupported and excessive sum of damages—the conflicts of interest make it uncertain whether the Department of Justice will zealously defend the public fisc in the same way that it has against other plaintiffs claiming damages for related events."
"To maintain the integrity of the judicial process in the face of these highly irregular circumstances, the court should consider exercising its inherent judicial authority to proactively manage this case from the outset," argued the former officials and groups, known as amici. Specifically, they said:
"To treat this case like business as usual," the coalition declared, "would threaten the integrity of the justice system and the important taxpayer and privacy protections at the heart of this case."
In a statement about the new filing in the Southern District of Florida, Abigail Bellows, Common Cause's senior policy director for anti-corruption and accountability, stressed that "we are watching a president attempt to bully the IRS into giving him billions of our taxpayer dollars."
"Our government should be accountable to the people, not the whims of a power-hungry executive," Bellows said. "We urge the court to take steps to promote judicial integrity and protect the public interest."
President Trump has made $4 billion since his second inauguration. And now, he's suing the Treasury Department and IRS for $10 billion more in "damages."So we're filing a brief urging the court to reject President Trump’s scheme and protect taxpayers.
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— Democracy Forward (@democracyforward.org) February 5, 2026 at 5:37 PM
In addition to representing the amici in this case, Democracy Forward has launched various other lawsuits against Trump and his administration, which have faced sweeping allegations of corruption since the president returned to power a year ago.
According to an analysis published by the New York Times editorial board last month, on the one-year anniversary of his second inauguration, Trump and his family enriched themselves to the tune of at least $1.4 billion during the first year of his second term—largely through investment in cryptocurrencies, though he's also secured settlements from tech and media companies.
Various other members of the second Trump administration have also been accused of corruption and conflicts of interest, and as the Times separately revealed in December, many rich and powerful contributors to Trump's post-election fundraising haul have received corporate-friendly regulatory changes, dropped enforcement cases, government contracts, and even pardons.
"The president's corruption continues, this time in an attempt to take $10 billion dollars of the taxpayers' money, which threatens to make a mockery out of our justice system," said Democracy Forward president and CEO Skye Perryman. "Not only does the president's baseless case have significant legal defects, but there are colossal conflicts of interest at play."
"We thank these experts for raising these serious concerns about how President Trump is seeking to further illegally line his own pockets at the public’s expense and our brief urges the court to exercise its power to ensure the matter is not one-sided."
Instead of a principled voice for sound economic policies and principles, Bessent has become a cheerleader for Trump’s dubious financial moves.
Treasury Secretary Scott Bessent’s job is to calm the economic fears that President Donald Trump creates. He has followed a curious journey to get there, and now he’s sacrificing his integrity and legacy to remain.
Born in a small South Carolina town, Bessent, 63, graduated from Yale College in 1984 with a bachelor’s degree in political science. Eventually he went to work for Soros Fund Management—founded by the Republicans’ favorite Democratic demon, George Soros.
Bessent is openly gay, married since 2011 to a former New York City prosecutor, and has been a strong advocate for gay rights and marriage equality. In 2000, he supported Democratic presidential candidate Al Gore, co-hosting a fundraiser for him in East Hampton, New York. He donated $2,300 to Barack Obama’s campaign in 2007. Although he donated $25,000 to support Hillary Clinton’s presidential aspirations, by then he was a major donor to Republican candidates.
Bessent returned to work for Soros in 2011 as chief investment officer but left in 2016 to form his own fund for which Soros provided a $2 billion anchor. From 2018 through 2021, as the global stock market broke records, the performance of Bessent’s fund was mediocre. Still, he amassed an estimated wealth of $600 million, although some reports refer to him as one of “Trump’s billionaires.”
Bessent and his husband have two children studying in Europe. As they process the European reaction to Trump, they may ask him what he is doing to make the world a better place.
Bessent donated $1 million to Trump’s inauguration in 2016, but was not part of the first term’s inner circle. When Trump left office in disgrace after January 6 and under the cloud of other legal woes, most business leaders were reluctant to support him publicly. But as Bessent said on Roger Stone’s radio show in 2024: “I was all in for President Trump. I was one of the few Wall Street people backing him.”
The 68 senators who voted to confirm Bessent as Treasury secretary probably hoped that, like Marco Rubio at the State Department, Bessent would be an “adult in the room.” Unlike other members of the clown car comprising Trump’s cabinet, Bessent would save the nation from Trump’s worst financial impulses.
After all, the country has never had a president who declared bankruptcy six times (although Trump told the Washington Post that he had only four because he counted the first three bankruptcies as one).
Instead of a principled voice for sound economic policies and principles, Bessent has become a cheerleader for Trump’s dubious financial moves. At times, he has resorted to rhetorical gymnastics to explain away Trump’s plain language. For example:
Bessent seems destined to follow the paths of other Trump enablers who eventually left the fold, like former Attorney General William Barr. He neutered the Mueller Report on Russian election interference during the 2016 election, only to resign 18 months later as January 6 approached. Eventually, Bessent will find himself on the outs with Trump, write a book, pursue a public speaking “redemption tour,” and explain that his government service saved the country from Trump’s worst impulses.
Such a rationalization rings hollow.
Bessent and his husband have two children studying in Europe. As they process the European reaction to Trump, they may ask him what he is doing to make the world a better place. The answer is also his legacy: In the process of sacrificing his personal integrity, Bessent has disserved the nation.
“This investigation provides one of the clearest and most damning views yet into Intellexa’s internal operations and technology," said Amnesty International Security Lab technologist Jurre van Bergen.
Highly invasive spyware from consortium led by a former senior Israeli intelligence official and sanctioned by the US government is still being used to target people in multiple countries, a joint investigation published Thursday revealed.
Inside Story in Greece, Haaretz in Israel, Swiss-based WAV Research Collective, and Amnesty International collaborated on the investigation into Intellexa Consortium, maker of Predator commercial spyware. The "Intellexa Leaks" show that clients in Pakistan—and likely also in other countries—are using Predator to spy on people, including a featured Pakistani human rights lawyer.
“This investigation provides one of the clearest and most damning views yet into Intellexa’s internal operations and technology," said Amnesty International Security Lab technologist Jurre van Bergen.
🚨Intellexa Leaks:"Among the most startling findings is evidence that—at the time of the leaked training videos—Intellexa retained the capability to remotely access Predator customer systems, even those physically located on the premises of its govt customers."securitylab.amnesty.org/latest/2025/...
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— Vas Panagiotopoulos (@vaspanagiotopoulos.com) December 3, 2025 at 9:07 PM
Predator works by sending malicious links to a targeted phone or other hardware. When the victim clicks the link, the spyware infects and provide access to the targeted device, including its encrypted instant messages on applications such as Signal and WhatsApp, as well as stored passwords, emails, contact lists, call logs, microphones, audio recordings, and more. The spyware then uploads gleaned data to a Predator back-end server.
The new investigation also revealed that in addition to the aforementioned "one-click" attacks, Intellexa has developed "zero-click" capabilities in which devices are infected via malicious advertising.
In March 2024, the US Treasury Department sanctioned two people and five entities associated with Intellexa for their alleged role "in developing, operating, and distributing commercial spyware technology used to target Americans, including US government officials, journalists, and policy experts."
"The proliferation of commercial spyware poses distinct and growing security risks to the United States and has been misused by foreign actors to enable human rights abuses and the targeting of dissidents around the world for repression and reprisal," the department said at the time.
Those sanctioned include Intellexa, its founder Tal Jonathan Dilian—a former chief commander of the Israel Defense Forces' top-secret Technological Unit—his wife and business partner Sara Aleksandra Fayssal Hamou; and three companies within the Intellexa Consortium based in North Macedonia, Hungary, and Ireland.
In September 2024, Treasury sanctioned five more people and one more entity associated with the Intellexa Consortium, including Felix Bitzios, owner of an Intellexa consortium company accused of selling Predator to an unnamed foreign government, for alleged activities likely posing "a significant threat to the national security, foreign policy, or economic health or financial stability of the United States."
The Intellexa Leaks reveal that new consortium employees were trained using a video demonstrating Predator capabilities on live clients. raising serious questions regarding clients' understanding of or consent to such access.
"The fact that, at least in some cases, Intellexa appears to have retained the capability to remotely access Predator customer logs—allowing company staff to see details of surveillance operations and targeted individuals raises questions about its own human rights due diligence processes," said van Bergen.
"If a mercenary spyware company is found to be directly involved in the operation of its product, then by human rights standards, it could potentially leave them open to claims of liability in cases of misuse and if any human rights abuses are caused by the use of spyware," he added.
Dilian, Hamou, Bitzios, and Giannis Lavranos—whose company Krikel purchased Predator spyware—are currently on trial in Greece for allegedly violating the privacy of Greek journalist Thanasis Koukakis and Artemis Seaford, a Greek-American woman who worked for tech giant Meta. Dilian denies any wrongdoing or involvement in the case.
Earlier this week, former Intellexa pre-sale engineer Panagiotis Koutsios testified about traveling to countries including Colombia, Kazakhstan, Kenya, Mexico, Mongolia, the United Kingdom, and Uzbekistan, where he pitched Predator to public, intelligence, and state security agencies.
The new joint investigation follows Amnesty International's "Predator Files," a 2023 report detailing "how a suite of highly invasive surveillance technologies supplied by the Intellexa alliance is being sold and transferred around the world with impunity."
The Predator case has drawn comparisons with Pegasus, the zero-click spyware made by the Israeli firm NSO Group that has been used by governments, spy agencies, and others to invade the privacy of targeted world leaders, political opponents, dissidents, journalists, and others.
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?"
"I am convinced that the DOJ ignored evidence found in the U.S. Treasury Department's Epstein file," wrote Sen. Ron Wyden.
A Democratic senator on Wednesday sent a letter to U.S. Attorney General Pam Bondi outlining potentially explosive financial reports that could detail the funding of the sex-trafficking ring run by the late financier Jeffrey Epstein.
As reported by The New Republic, Sen. Ron Wyden's (D-Ore.) letter to Bondi outlined seven lines of inquiry that the U.S. Department of Justice could pursue based on the information that he and his staff have uncovered regarding the financing of Epstein's illicit operations. Specifically, Wyden zeroed in on Suspicious Activity Reports (SARS) that were filed with the U.S. Department of the Treasury that include "information on more than 4,725 wire transfers involving Epstein's accounts" that total $1.5 billion in value.
Wyden then pointedly questioned why the DOJ had not yet made public any findings related to investigations it has conducted into the flagged transactions—if it has bothered to conduct any such investigations at all.
"I am convinced that the DOJ ignored evidence found in the U.S. Treasury Department's Epstein file, a binder that contains extensive details on the mountains of cash Epstein received from prominent businessmen that Epstein used to finance his criminal network," Wyden wrote. "Epstein clearly had access to enormous financing to operate his sex-trafficking network, and the details on how he got the cash to pay for it are sitting in a Treasury Department filing cabinet."
Wyden said that he and his staff also uncovered "hundreds of millions of dollars in wire transfers" sent to Epstein via several Russian banks that have since been sanctioned by the United States government. The senator added that "it appears that these wire transfers were correlated to the movement of women or girls around the world."
Epstein has been in the news lately after the Bondi-led DOJ earlier this month published a memo concluding that Epstein did not have a "client list" of wealthy elites involved in his sex-trafficking operation, which often involved young girls who at the time were under the age of 18. This caused a firestorm among many supporters of U.S. President Donald Trump who have long alleged that any Epstein client list would implicate figures including former President Bill Clinton and Microsoft cofounder Bill Gates.
Complicating matters is the fact that Trump himself also had a years-long friendship with Epstein. In a 2002 interview with New York magazine, Trump described Epstein as "a lot of fun to be with" while adding that "it is even said that he likes beautiful women as much as I do, and many of them are on the younger side."
"The administration is shattering what little trust remains between immigrant communities and the government and putting critical revenue streams at risk," said one critic.
Migrant and privacy rights advocates this week are sounding the alarm over a deal signed by Treasury Secretary Scott Bessent and Homeland Security Secretary Kristi Noem to hand sensitive taxpayer data over to immigration authorities as part of U.S. President Donald Trump's mass deportation effort.
The Internal Revenue Service (IRS) and the Immigration and Customs Enforcement (ICE) have entered into a memorandum of understanding (MOU) "to establish a clear and secure process to support law enforcement's efforts to combat illegal immigration," a Treasury Department spokesperson told Fox News, which reported on the development after a late Monday court filing.
"The bases for this MOU are founded in long-standing authorities granted by Congress, which serve to protect the privacy of law-abiding Americans while streamlining the ability to pursue criminals," the spokesperson said. "After four years of [former President] Joe Biden flooding the nation with illegal aliens, President Trump's highest priority is to ensure the safety of the American people."
After weeks of warnings about a potential data transfer deal, it was revealed as part of a legal case brought by Centro de Trabajadores Unidos, Immigrant Solidarity DuPage, Inclusive Action for the City, and Somos Un Pueblo Unido, which are represented by Alan Morrison, Public Citizen Litigation Group, and Raise the Floor Alliance.
"Taxpayer privacy is a cornerstone of the U.S. tax system," Public Citizen co-president Lisa Gilbert said in a Tuesday statement. "This move by the IRS is an unprecedented breach of taxpayer privacy laws and confidentiality, which has been respected by both political parties for decades."
"The Trump administration's terror tactic of using immigrants' tax data against them will drive some of our most vulnerable communities further underground," she warned. "If this taxpayer information isn't safe from the prying eyes of the Trump administration's goons, then no one's taxpayer information is safe."
Juliette Kayyem, a former Department of Homeland Security official now lecturing at the Harvard Kennedy School, wrote on social media: "Bad policy. Bad economics. And cruel. They are so desperate to get their deportation numbers up that they are doing this."
Multiple members of Congress also blasted the move. Rep. Jimmy Gomez (D-Calif.) said that "the IRS should NEVER be weaponized to target immigrant families. This backdoor deal with ICE shatters decades of trust—and may be illegal."
"I will fight this with everything I've got," vowed Gomez, a member of the House Ways and Means Committee. "No one should fear that filing taxes puts their family at risk."
Congressman Joaquin Castro (D-Texas) was among the critics who emphasized that the MOU doesn't just affect migrants.
"First things first: The impact of folks not filing their taxes because they are afraid of deportation would be detrimental to our economy," he explained. "Two: Immigrants pay taxes but do not benefit from the social programs that most taxpayers do. Three: Everyone should be concerned about the privacy implications here. This sets the precedent that the federal government can arbitrarily share your personal information with law enforcement. And it's just wrong."
Rep. Juan Vargas (D-Calif.) similarly said: "For decades, undocumented immigrants have trusted the IRS when it encouraged them to file. They've paid taxes in good faith, contributing nearly $100 BILLION per year and supporting social services they can't even access. Not only is this a total betrayal, but it's also illegal. We'll fight this."
The Institute on Taxation and Economic Policy also highlighted that "turning the IRS away from its job (collecting taxes) to instead focus on mass deportation efforts will mean less tax revenue collected on top of the harm done to families and communities affected by deportations."
In response to The New York Times' reporting on the deal, American Immigration Council senior fellow Aaron Reichlin-Melnick pointed out on social media that the MOU "is, on its face, limited to criminal investigations (not deportation investigations)."
"There are many questions raised about this new [agreement], which seems to violate previous understandings of the laws requiring IRS not to share taxpayer information," he continued. "But at its heart it does not seem that the MOU permits ICE to ask for taxpayer data for deportation reasons."
"It seems primarily to be aimed at criminal investigations for willful failure to depart after the issuance of a removal order, a crime on the books which (until now) is virtually never prosecuted," Reichlin-Melnick added. "Despite the fact that this MOU is limited only to criminal law enforcement, it will likely have a chilling effect on undocumented taxpayers."
How the Trump administration actually proceeds remains to be seen. The court filing says no information has been shared between the agenices yet—but the deal comes as part of a wave of anti-immigrant policies and rhetoric from the president and his officials.
"With the Supreme Court greenlighting Trump's use of the Alien Enemies Act and the administration now gaining access to sensitive IRS data, we continue to slip into a new era of authoritarianism in America," Beatriz Lopez, co-executive director of the Immigration Hub, said a Tuesday statement "The digital and physical dragnets that Trump is building mean millions of immigrants—many of whom have followed the law and paid their taxes for decades—are now vulnerable to indiscriminate brutality and quiet erasure with little opportunity for redress."
Lopez stressed that "undocumented immigrants already contribute billions to our economy—often paying a higher effective tax rate than 55 major corporations and some of the wealthiest individuals in America. By weaponizing private taxpayer data, the administration is shattering what little trust remains between immigrant communities and the government and putting critical revenue streams at risk."
"Coupled with Trump's xenophobic tariff threats and a $350 billion demand to fund mass disappearances and deportations, this is more than an attack on immigrants—it's a calculated effort to destabilize the country and remake its image," she concluded. "Congress must reject this funding and the authoritarian playbook behind it. This is not policy. It's punishment."