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'A $1,700,000,000 Fraud': Trump Set to Drop IRS Suit in Exchange for MAGA Slush Fund
"This is a massive and unprecedented presidential plunder of the American people," said Rep. Jamie Raskin.
May 15, 2026
The top Democrat on the House Judiciary Committee on Thursday accused US President Donald Trump of "orchestrating a $1,700,000,000 fraud on the American taxpayer to line the pockets of his MAGA political allies" amid new reporting on the terms Trump is seeking in talks to settle his $10 billion lawsuit against the Internal Revenue Service.
ABC News reported late Thursday that Trump is expected to drop his lawsuit in the coming days "in exchange for the creation of a $1.7 billion fund to compensate allies who claim they were wrongfully targeted by the Biden administration." The money would come from the Treasury Department's Judgment Fund, which pays out court judgments and settlements against the federal government.
The president is also expected to receive a public apology from the IRS for the leak of his tax returns during his first White House term.
Rep. Jamie Raskin (D-Md.) said in a statement that the reported settlement terms represent "another installment" in Trump's "ongoing effort to turn the federal government into a personal cash machine for his unpopular extremist movement."
"This is a massive and unprecedented presidential plunder of the American people," said Raskin. "Worse still, this is only the beginning—a declaration that the prior payouts were just a down payment, and that he now intends to earmark billions more in taxpayer dollars for his political allies, sycophants, and private militia of unemployed insurrectionists."
“The president has no authority to conjure up billion-dollar compensation schemes or raid the Judgment Fund, which exists to settle valid lawsuits. Trump is systematically converting neutral government mechanisms into a presidential slush fund to build his army of political dependents," Raskin continued. "Congress must act immediately to reassert the power of the purse and stop this brazen looting of taxpayer funds before this ‘pilot program’ for corruption becomes the permanent operating system of our government."
According to ABC, which cited unnamed sources who emphasized that the settlement's terms should not be considered final until officially announced, the deal is "expected to prohibit Trump from directly receiving payments related to those three legal claims; however, entities associated with Trump are not explicitly barred from filing additional claims."
"The arrangement would be an unprecedented use of taxpayer dollars with little oversight," ABC noted. "Under the terms of the potential settlement agreement, President Trump would have the authority to remove members of the commission running the fund without cause, and the commission would be under no obligation to disclose its procedures or decision-making process for awarding more than a billion dollars."
ABC's story came on the heels of reports earlier this week revealing internal Justice Department discussions on settling Trump's lawsuit, which he filed in late January. Last month, a federal judge questioned the constitutionality of Trump's suit, noting that "he is the sitting president and his named adversaries are entities whose decisions are subject to his direction."
"Real story: Judge was about to throw out the case because Trump controls both parties," Rep. Dan Goldman (D-NY) wrote late Thursday. "Before it’s dismissed, Trump tells both parties to reach a 'settlement.' Settlement shields Trump from any future audit and creates a secret slush fund that can dole out money to anyone with no transparency."
"Mind-boggling corruption," Goldman added.
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House Democrat Warns Trump on Verge of 'Largest Single Act of Grand Larceny in American History'
"Trump is considering stealing billions of dollars from the American people" with a $10 billion lawsuit against the IRS, said Rep. Don Beyer.
May 13, 2026
Democrats in Congress are warning that President Donald Trump is on the verge of "stealing" billions of dollars from American taxpayers in the coming days as his Department of Justice reportedly considers settling his lawsuit against the Internal Revenue Service.
The New York Times reported on Tuesday that the DOJ, headed by the Trump loyalist acting Attorney General Todd Blanche, was holding internal discussions about whether to settle the suit that was brought by Trump and his sons, as well as the family's business empire, in January.
The case centers on the IRS's leak of Trump's tax returns during his first term, which occurred after he broke decades of precedent by refusing to release them. The lawsuit alleges that the IRS failed to prevent former IRS contractor Charles Littlejohn from unlawfully disclosing tax information to media outlets, for which he pleaded guilty in 2024.
The leaks, reported by The New York Times and ProPublica, revealed that Trump had engaged in what was described as “outright fraud” and other “dubious” schemes to avoid taxation, and that he paid no federal income taxes in many of the years leading up to his presidency.
The Trumps are seeking a payout of at least $10 billion from the IRS, which is currently being headed by Trump's handpicked Social Security Administration head, Frank J. Bisignano, who reports to Treasury Secretary Scott Bessent.
This creates an extraordinary legal situation widely described as a blatant conflict of interest, since Trump is suing an IRS that he effectively controls, which is being represented by a DOJ he also effectively controls.
For a case to be valid, however, the parties must demonstrate that they are actually on opposite sides; otherwise, the case can be thrown out of court.
US District Judge Kathleen M. Williams of the Southern District of Florida, who is overseeing the case, questioned its constitutionality last month and required the parties to file briefs by May 20 demonstrating whether there is an actual conflict between them.
According to the Times, however, the DOJ is considering settling the case with Trump before that happens, and there'd be little Williams could do to stop it.
Not only could Trump walk away with a payout of several billion dollars—if not the full $10 billion he asked for—according to the Times, the White House and DOJ have also discussed a deal for the IRS to drop all audits into Trump, his family, and his businesses.
Presidents and vice presidents are required under IRS to undergo audits of their annual tax returns, and a 2024 Times report found that if Trump failed an audit, it could cost him more than $100 million.
Trump's presidency has been defined by him and his family profiting from their positions of influence. According to a live tracker from the Center for American Progress, Trump and his family have used the White House to rake in more than $2.6 billion worth of cash and gifts.
In addition to about $1.5 billion from their cryptocurrency ventures, which they've used the White House to promote, they have received direct gifts—like a $400 million luxury jet from the government of Qatar—and legal cash settlements from media and tech companies worth over $90 million. On top of the IRS lawsuit, Trump has also demanded that the DOJ pay him $230 million over past criminal investigations into him.
But if Trump received even a fraction of what he demanded in a payout from the IRS, it could make the graft from the first year and a half of his presidency look like pocket change, potentially netting him several billion more dollars and possibly even doubling his net worth.
"Trump is considering stealing billions of dollars from the American people," said Rep. Don Beyer (Va.), the ranking House Democrat on the Joint Economic Committee. "He's already the most corrupt president ever by a wide margin, but this would be fraud and theft on a scale even he has never attempted. The largest single act of grand larceny in American history."
Sen. Elizabeth Warren (D-Mass.), the ranking member on the Senate Banking, Housing, and Urban Affairs Committee, added that for the DOJ to hand Trump a settlement "before a court rules" would be a "massive, unprecedented scandal."
"Congress must stop him," the senator added, noting that she had introduced a bill last month that would bar presidents, vice presidents, and their families from collecting settlement payments from the federal government while in office. If they file administrative claims, Warren's bill would also require that the agencies be represented by independent counsels appointed by the court. However, her bill has gotten little traction in a Republican-controlled Congress.
Bharat Ramamurti, who served as the deputy director of the White House National Economic Council under former President Joe Biden, said the IRS lawsuit was a "massive scam" that was "much worse" than Trump's proposal for Congress to provide $1 billion in taxpayer money to pay for his White House ballroom project.
Of the IRS lawsuit, he said, "Democrats should raise hell over it."
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Trump's 'Golden Dome' Shield Exposed as 'Trillion-Dollar Boondoggle' by CBO
Sen. Jeff Merkley called the project “nothing more than a massive giveaway to defense contractors paid for entirely by working Americans.”
May 12, 2026
The Congressional Budget Office on Tuesday released a report estimating that President Donald Trump's proposed "Golden Dome" missile defense system would cost $1.2 trillion to create, deploy, and operate over the first 20 years of its existence.
The CBO report projects that acquisition costs for the proposed national missile defense (NMD) system would account for the vast majority of the $1.2 trillion total, including "costs for the system’s major components—namely, the interceptor layers and a space-based missile warning and tracking system."
In fact, the report says that the NMD system's space-based interceptor layer will be so expensive that it "accounts for about 70% of acquisition costs and 60% of total costs."
The CBO also questioned whether this massive investment would successfully protect the US from a foreign missile attack.
"Although the notional NMD system... would be far more capable than defenses the United States fields today," the report states, "it would not be an impenetrable shield or be able to fully counter a large attack of the sort that Russia or China might be able to launch."
"The strategic consequences of deploying an NMD system with the capacity considered here are unclear," the report continues, "because they hinge on an adversary’s perception of the defense's capability and how that adversary chose to respond."
The CBO's estimate on the missile system's cost was nearly seven times the projection Trump made last year, when he said it would cost just $175 billion.
And because the US Department of Defense still hasn't delivered key details about the proposed system, the CBO wrote, it is currently "impossible to estimate the long-term cost" of the initiative.
Sen. Jeff Merkley (D-Ore.), a longtime critic of the "Golden Dome" proposal, said the CBO report shows the Trump-backed project is "nothing more than a massive giveaway to defense contractors paid for entirely by working Americans."
"Just like the president’s symbolic renaming of the Department of Defense or deploying National Guard troops to our cities," added Merkley, who is the ranking member of the Senate Budget Committee, "this move to fund the ‘Golden Dome’ will be far more effective at squandering money than protecting American lives."
The Oregon Democrat vowed to "continue to work with my colleagues in the Senate to prevent another dime from flowing to this racket."
Sen. Ed Markey (D-Mass.), also a longtime critic of the president's proposed missile system, wrote in a social media post that "Trump’s Golden Dome is a $1.2 trillion golden sieve that won’t stop a nuclear attack, but will balloon the deficit and boost the bottom lines of billionaires."
Tommy Vietor, former National Security Council staffer under President Barack Obama and current co-host of Pod Save America, was even blunter in his criticism of the "Golden Dome" plan.
"$1.2 TRILLION for this dumb fucking Golden Dome missile defense system," he wrote in a social media post. "The initial estimate was $175 billion! Madness. No one wants this."
Daniel Larison, contributing editor at Antiwar.com and former senior editor at The American Conservative magazine, wrote that the CBO report exposed Trump's dome as a "trillion-dollar boondoggle."
Trump has said that he was inspired to develop such a missile system after being impressed by Israel’s “Iron Dome," despite the fact that Israel has a vastly smaller landmass to defend compared to the US and has historically faced far more danger from missile and rocket attacks.
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'We Can Tell': Trump Confesses He Doesn't 'Think About Americans' Financial Situation' When It Comes to Iran War
"And they still want you to believe he's fighting for you," said one Democratic lawmaker.
May 12, 2026
US President Donald Trump on Tuesday confessed he is not concerned about the increasing level of economic hardship tens of millions of Americans are facing due to rising costs related to the war of choice he launched against Iran over two months ago.
Despite inflation hitting a three-year high and the average price of gasoline in the US now averaging over $4.50 per gallon, Trump was asked by a reporter outside the White House about how much “Americans’ financial situations” were on his mind as he tries to negotiate an end to the war he initiated with a preemptive attack by US and Israeli forces on February 28.
“Not even a little bit,” Trump said in response. “The only thing that matters when I’m talking about Iran—they can’t have a nuclear weapon. I don’t think about Americans’ financial situation. I don’t think about anybody. I think about one thing—we cannot let Iran have a nuclear weapon. That’s all.”
Trump on Iran War:
Reporter: What extent are Americans’ financial situation motivating you to make a deal?
Trump: Not even a little bit. I don't think about Americans’ financial situation pic.twitter.com/TJ94pGpqD8
— Acyn (@Acyn) May 12, 2026
"And they still want you to believe he's fighting for you," said Rep. Summer Lee (D-Pa.) in reaction to the president's comments.
While both the US and Israel do have nuclear weapons, the Iranians contend their nuclear program is not designed for military purposes. In 2017, during his first term, Trump ripped up the Joint Comprehensive Plan of Action (JCPOA), brokered by the Obama administration, which experts agree put in strong safeguards to prevent Iran from furthering any unchecked ambitions toward nuclear weapons.
With peace talks largely stalled due to Trump's maximalist demands and refusal to admit he started the war without a plan on how to end it, frustration is growing in the United States, where a large majority of the population say they oppose the conflict, disapprove of the president's handling of it, and want it brought to a conclusion as soon as possible.
While Trump's comments were predictable to an extent, they still stirred outrage among those concerned about the economic headwinds Americans are facing due to the war in Iran.
"The sky is blue, and water is wet," said the Groundwork Collaborative of the confession. "Nice of him to say it out loud, though."
"Prices are up on gas, groceries, rent, utilities, healthcare, and just about everything else," said the AFL-CIO. "Shit’s too expensive, and workers’ wages aren’t keeping up. America’s unions worry about this 24/7. Our president of the United States should, too."
"It’s no surprise," said Sen. Peter Welch (D-Vt.), with a look of disappointment. "That should be job one for him."
"Trump says he doesn't think about Americans' financial situation at all," asserted Rep. Brendan Boyle (D-Pa.). "We can tell."
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