{"id":332563,"date":"2026-05-15T21:38:04","date_gmt":"2026-05-15T21:38:04","guid":{"rendered":"https:\/\/usa.timesofnews.com\/breaking-news\/political\/democrats-blast-trump-over-slush-fund-in-possible-irs-lawsuit-settlement.html"},"modified":"2026-05-15T21:38:04","modified_gmt":"2026-05-15T21:38:04","slug":"democrats-blast-trump-over-slush-fund-in-possible-irs-lawsuit-settlement","status":"publish","type":"post","link":"https:\/\/usa.timesofnews.com\/breaking-news\/political\/democrats-blast-trump-over-slush-fund-in-possible-irs-lawsuit-settlement.html","title":{"rendered":"Democrats blast Trump over ‘slush fund’ in possible IRS lawsuit settlement"},"content":{"rendered":"

ABC News, citing sources familiar with the situation, reported<\/a> on Thursday that Trump and the IRS could settle his lawsuit in exchange for a compensation fund that could be used to compensate the president’s allies who claim to have been wrongfully targeted by the Biden administration<\/a>.<\/p>\n

The New York Times reported<\/a> on Tuesday that the Justice Department<\/a> was considering settling Trump’s IRS suit, also citing sources familiar.<\/p>\n

The agreement could involve the exchange of taxpayer funds or another public benefit to Trump and the end of any audit into Trump, his family, and business, the Times reported.<\/p>\n

The White House did not immediately respond to a request for comment on Friday.<\/p>\n

News of the potential settlement comes ahead of a May 20 deadline set by U.S. District Court Judge Kathleen Williams, who asked the Justice Department and Trump’s legal team to explain whether the case with the president on both sides can even be heard by a federal court.<\/p>\n

“(A)lthough President Trump avers that he is bringing this lawsuit in his personal capacity, he is the sitting president and his named adversaries are entities whose decisions are subject to his direction,” Williams wrote in a court filing<\/a> in April. <\/p>\n

“It is unclear to this Court whether the Parties are sufficiently adverse to each other so as to satisfy” the constitutional requirement that federal cases only adjudicate cases or controversies.<\/p>\n

Williams’ comment came after attorneys for both Trump and the IRS requested a 90-day pause in proceedings as they sought a resolution.<\/p>\n

“Trump is ‘dropping’ his bogus lawsuit against the IRS in exchange for a slush fund, courtesy of\u00a0your tax dollars, that he can use to pay off his\u00a0political\u00a0allies,” Sen. Chris Van Hollen, D-Md., posted to X on Friday. <\/p>\n

“While people drown in high prices inflation \u2014 Trump’s lining his his buddies’ pockets. \u00a0We will fight this,” Van Hollen wrote.<\/p>\n

The exact terms of any settlement have not been finalized, but it could include a victim compensation fund as well as a truth-and-reconciliation-style commission that could vote to issue monetary rewards, ABC News reported. <\/p>\n

“Donald Trump is orchestrating a $1,700,000,000 fraud on the American taxpayer to line the pockets of his MAGA political allies, another installment in his ongoing effort to turn the federal government into a personal cash machine for his unpopular extremist movement,” said Rep. Jamie Raskin<\/a>, D-Md., the top Democrat on the House Judiciary Committee. “This is a massive and unprecedented presidential plunder of the American people.”<\/p>\n

Article source: https:\/\/www.cnbc.com\/2026\/05\/15\/trump-irs-taxes-democrats.html<\/a>\r\n<\/p>","protected":false},"excerpt":{"rendered":"

ABC News, citing sources familiar with the situation, reported on Thursday that Trump and the IRS could settle his lawsuit in exchange for a compensation fund that could be used to compensate the president’s allies who claim to have been wrongfully targeted by the Biden administration. The New York Times reported on Tuesday that the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[84],"class_list":["post-332563","post","type-post","status-publish","format-standard","hentry","category-political","tag-political"],"_links":{"self":[{"href":"https:\/\/usa.timesofnews.com\/breaking-news\/wp-json\/wp\/v2\/posts\/332563","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/usa.timesofnews.com\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/usa.timesofnews.com\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/usa.timesofnews.com\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/usa.timesofnews.com\/breaking-news\/wp-json\/wp\/v2\/comments?post=332563"}],"version-history":[{"count":0,"href":"https:\/\/usa.timesofnews.com\/breaking-news\/wp-json\/wp\/v2\/posts\/332563\/revisions"}],"wp:attachment":[{"href":"https:\/\/usa.timesofnews.com\/breaking-news\/wp-json\/wp\/v2\/media?parent=332563"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/usa.timesofnews.com\/breaking-news\/wp-json\/wp\/v2\/categories?post=332563"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/usa.timesofnews.com\/breaking-news\/wp-json\/wp\/v2\/tags?post=332563"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}