U.S. Justice Department Announces $1.7 Billion Fund for Trump Allies in IRS Settlement
The U.S. Justice Department has unveiled a $1.7 billion compensation fund aimed at allies of former President Donald Trump, as part of a deal to dismiss an ongoing lawsuit brought by the Internal Revenue Service. The announcement, made on May 18, 2026, marks a significant development in the legal battles surrounding the Trump administration.
According to officials, the fund will be used to reimburse individuals and entities that were allegedly targeted by the IRS during audits and investigations. The settlement effectively ends the lawsuit, which had accused the IRS of politically motivated actions against Trump supporters.
Critics have voiced concerns over the use of taxpayer money for such compensation, while supporters argue it rectifies past injustices. The Justice Department emphasized that the deal aims to restore trust and avoid prolonged litigation.
Details on eligibility and distribution of the funds are expected to be released in the coming weeks. The announcement comes amid ongoing political tensions and debates over the independence of federal agencies.
