Trump Seeks $1.7 Billion Fund for Allies Claiming 'Weaponized' Justice Department Misconduct

According to ABC News, President Donald Trump is proposing to settle his $10 billion lawsuit against the IRS in exchange for a $1.7 billion fund to compensate his allies who claim they were victimized by the 'weaponized' Biden Justice Department.

Sat May 16 2026

Trump Proposes 'Weaponization' Fund

Sources close to ABC News indicate that President Donald Trump is poised to negotiate a deal with his own government. The proposal involves dropping his $10 billion lawsuit against the IRS in exchange for the creation of a $1.7 billion fund. This fund would be used to compensate his allies who allege they were mistreated by what he terms the 'weaponized' Biden Justice Department. The lawsuit against the IRS was filed over the leak of his tax returns, and he also sought $230 million in claims against the Justice Department for investigating him.

Controversy and Criticism

This proposed fund would be managed by a commission, whose members President Trump could fire at any time. Importantly, the fund would not be required to disclose its operational methods or decision-making processes. Even some Republican lawmakers have expressed surprise, questioning the legality and ethics of such a fund. Democrats have strongly condemned it, labeling it a 'slush fund' and 'graft' financed by taxpayer money, suggesting it could benefit individuals involved in events like the January 6th Capitol attack.

*Source: YouTube: ABC News (2026-05-16)*

Tags: #DonaldTrump #JusticeDepartment #TrumpAllies #PoliticalFund #IRS