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us department of the treasury
Top Democrats Demand DOJ and IRS Answer for Trump 'Taxpayer Shakedown' and 'Super-Pardon'
"Never in American history has a president pursued corruption this brazenly or on such a colossal scale," wrote Reps. Jamie Raskin and Richard Neal.
May 20, 2026
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.
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'Aiding and Abetting Genocide': US Sanctions Peaceful Gaza Flotilla Organizers
"Every time Palestinians and their supporters organize internationally, Washington reaches for the terrorism label to shut them down," said one critic.
May 19, 2026
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.”
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US Families Set to Pay Combined $330 Billion in Tariff Costs This Year—Over $2,500 Per Household
Sen. Maggie Hassan said that while paying back businesses hit by Trump’s illegal tariffs, the administration “refuses to provide relief for families.”
Mar 13, 2026
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.”
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