• Home
  • News
  • Government
  • Business & Finance
  • Entertainment
  • Sports
  • Tech
  • Health
  • About Federal Character
  • Advertise With Us
Federal Character
No Result
View All Result
Federal Character
  • Home
  • News
  • Government
  • Business & Finance
  • Entertainment
  • Sports
  • Tech
  • Health
  • About Federal Character
  • Advertise With Us
No Result
View All Result
Federal Character
No Result
View All Result
Home Business & Finance
​IRS Aims to Track and Tax 5M Dual Citizens Next Year

Trump Settles IRS Tax Suit Using Public Money

Eriki Joan UgunushebyEriki Joan Ugunushe
4 months ago
in Business & Finance
Reading Time: 3 mins read
A A
0
Facebook ShareWhatsapp ShareX Share

Two police officers who defended the U.S. Capitol on January 6, 2021, have filed a major federal lawsuit to freeze a new $1.776 billion government fund. The money pool was created as part of a controversial settlement by the Justice Department to resolve a personal lawsuit filed by President Donald Trump against the Internal Revenue Service (IRS). The officers argue that the multi-billion-dollar program is completely illegal and will act as a taxpayer-funded pool to reward political rioters.

Table of Contents

Toggle
  • A Multibillion-Dollar Deal Turns a Private Lawsuit
  • Capitol Police Officers Sue to Stop Payouts
  • A Dangerous Blueprint for Legal Extortion

A Multibillion-Dollar Deal Turns a Private Lawsuit

The dispute began when President Trump, his two eldest sons, and the Trump Organization filed a massive $10 billion lawsuit against the IRS. The family claimed that the unauthorized leak of their private tax returns to the media caused massive reputational and business damage. Instead of fighting the case in open court, the administration agreed to drop the lawsuit in exchange for a formal apology and the creation of the “Anti-Weaponization Fund.”

Trump Settles IRS Tax Suit Using Public Money

The money for this new program is coming directly from the federal Judgment Fund, a permanent pool of public taxpayer cash used to resolve legal claims against the government. Under the settlement rules, individuals who believe they were unfairly targeted, investigated, or prosecuted by past administrations for political or ideological reasons can apply for financial payouts. Acting Attorney General Todd Blanche will appoint a five-member commission to oversee the distributions, and the entire process will happen behind closed doors away from public court scrutiny.

Capitol Police Officers Sue to Stop Payouts

The creation of the massive public fund immediately triggered a fierce legal backlash. Former Capitol Police Officer Harry Dunn and active Metropolitan Police Officer Daniel Hodges filed a joint complaint in a Washington federal court to dismantle the program. Both officers suffered severe injuries during the January 6 Capitol riot and have faced ongoing harassment and death threats for speaking out publicly.

The officers’ lawsuit raises several serious arguments against the Trump administration. The lawsuit argues that the fund directly violates the U.S. Constitution, which explicitly bans using federal money to pay off debts or claims linked to an insurrection or rebellion.

The plaintiffs state that Congress never passed a law authorizing the executive branch to invent a brand-new $1.7 billion compensation program out of a private settlement. During a tense congressional hearing, Acting Attorney General Todd Blanche explicitly refused to rule out letting January 6 rioters receive payouts. Because Trump already used his presidential pardon powers to erase the criminal cases of nearly 1,500 rioters, the officers argue these individuals can now use the fund to collect millions in taxpayer dollars for legal fees and prison time.

A Dangerous Blueprint for Legal Extortion

This settlement is one of the most shocking abuses of public funds in modern history. There is an incredibly dangerous double standard happening here. If an ordinary citizen sues a government agency and settles, they might get a personal check from the state. They do not get to rewrite federal policy, bypass Congress, and force the U.S. Treasury to set up a secretive $1.7 billion bank account controlled by their own hand-picked allies.

Using a leak of tax returns as an excuse to build a massive financial reward system for political supporters completely undermines the rule of law. It sends a terrifying message to the entire country: if you commit violence or break the law in the name of the president, you won’t just get a presidential pardon, you might eventually get a giant financial payday funded by the very taxpayers you attacked.

Furthermore, keeping the entire payout process completely hidden from the public eye removes any form of democratic accountability. The government’s Judgment Fund exists to settle legitimate legal wrongs, not to serve as a private vault for an administration to distribute wealth to its favorite groups. Officers Dunn and Hodges are completely right to fight this in court. If a president can use a personal grievance to manufacture a billion-dollar public program out of thin air, the barrier between public service and personal profit has completely evaporated.

Tags: federal characterForeign NewsgovernmentIRS Tax SuitNewsPublic Moneytrump
Share234SendTweet147
Eriki Joan Ugunushe

Eriki Joan Ugunushe

Eriki Joan Ugunushe is a dedicated news writer and an aspiring entertainment and media lawyer. Graduated from the University of Ibadan, she combines her legal acumen with a passion for writing to craft compelling news stories.Eriki's commitment to effective communication shines through her participation in the Jobberman soft skills training, where she honed her abilities to overcome communication barriers, embrace the email culture, and provide and receive constructive feedback. She has also nurtured her creativity skills, understanding how creativity fosters critical thinking—a valuable asset in both writing and law.

Related Stories

Costco Gets $184m Tariff Refund, Promises Savings For Customers

Costco Gets $184m Tariff Refund, Promises Savings For Customers

byAyobami Owolabi
0

Costco has received $184 million in tariff refunds from the US government and expects additional payments as importers continue to recover duties collected under tariffs that were later...

​U.S. and China Agree to $30 Billion Tariff Cut Following Summit

​U.S. and China Agree to $30 Billion Tariff Cut Following Summit

byEriki Joan Ugunushe
0

​​China announced on Saturday that it reached an eight-point consensus with the United States, anchored by a reciprocal $30 billion tariff-reduction arrangement and a formal bilateral dialogue on...

EU Warns Trump Against US Diesel Export Ban Amid Supply Fears

EU Warns Trump Against US Diesel Export Ban Amid Supply Fears

byAyobami Owolabi
0

The European Union has cautioned US President Donald Trump against imposing a ban on diesel exports, warning that restricting supplies to the global market could have negative consequences...

Amazon Prime Refunds: Millions More Get Automatic Payments Oct 1

Amazon Prime Refunds: Millions More Get Automatic Payments Oct 1

bySomto Nwanolue
0

Millions more Amazon Prime customers could begin receiving automatic refunds starting next week as part of a $2.5 billion settlement with the Federal Trade Commission. Amazon will begin...

Next Post
Stephen Colbert Honoured With Anti-Censorship Award After ‘Late Show’ Cancellation

A Sad Week For Television” — Seth Meyers Speaks On Colbert’s Exit From Late Show

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Federal Character

We bring to you precise and factual news.
Towson, Baltimore, Maryland, USA

Recent Posts

  • Ex-New Jersey Lieutenant Governor Rejects Sexual Harassment Findings After Resignation
  • How Fela Kuti’s Afrobeat Legacy Helped Shape Nigeria’s Global Music Movement
  • Breel Embolo withdraws from Switzerland squad over forged COVID-19 documents

Categories

  • Beauty
  • Business & Finance
  • Entertainment
  • Fashion & Lifestyle
  • Food & Nutrition
  • Government
  • Health
  • News
  • Politics
  • Sports
  • Tech

Weekly Newsletter

  • Home
  • About Federal Character
  • Advertise With Us
  • Cookie Policy
  • Sitemap

Copyright © FederalCharacter.com 2026 .

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • News
  • Government
  • Business & Finance
  • Entertainment
  • Sports
  • Tech
  • Health
  • About Federal Character
  • Advertise With Us

Copyright © FederalCharacter.com 2026 .