President Trump and the Justice Department agreed to settle his lawsuit over leaked tax returns by creating a $1.776 billion fund to handle claims of government “weaponization,” Acting Attorney General Todd Blanche announced May 18, 2026. The settlement ends the suit that originally sought $10 billion and was filed in Miami federal court in January.
Under the agreement, Trump, his sons Eric Trump and Donald Trump Jr., and the Trump Organization will receive a formal apology but “no monetary payment or damages of any kind,” the department said. Instead, Blanche directed creation of an “Anti-Weaponization Fund” to provide a process for people to submit and resolve claims that federal power was misused against them.
The fund will be governed by a five-member commission appointed by the attorney general. The commission will have authority to issue formal apologies and to award monetary relief where appropriate. The Justice Department said the fund will stop accepting claims on Dec. 15, 2028; any money remaining after that date will return to the federal treasury.
The lawsuit alleged the IRS and Treasury improperly allowed a government contractor to disclose Trump’s tax returns, as well as returns belonging to his sons and the Trump Organization, to media outlets in 2020. Trump’s legal team had initially asked for $10 billion in damages and separately sought about $230 million in claims tied to investigations during his first administration and the Biden administration; the department said those administrative claims against the Justice Department were also dropped as part of the settlement.
Court filings earlier Monday indicated the parties had reached a resolution. In a footnote, Trump’s lawyers argued the dismissal is “self-executing” and does not require a judge’s signature, effectively seeking to bypass U.S. District Judge Kathleen M. Williams, who had questioned whether a sitting president can sue his own government and ordered a hearing on Article III standing.
Judge Williams had written that, although Trump says he sued in a personal capacity, he is the sitting president and the defendants are agencies whose decisions are subject to his direction, raising questions about whether the parties are sufficiently adverse to present a justiciable case or controversy.
Ninety-three Democratic members of Congress filed a motion Monday seeking to intervene, arguing a settlement could “siphon billions of taxpayer dollars into the pockets of the President, his family, and his allies.” The Justice Department said the settlement instead creates a structured remedy for others who claim they were harmed by “lawfare” or weaponization of government powers.
Blanche said in a statement that the government “should never be weaponized against any American” and that the department intends to “make right the wrongs that were previously done while ensuring this never happens again.” A Trump spokesperson said the president entered the settlement “for the benefit of the American people” and would continue to pursue accountability for those he says wronged Americans.
It remains unclear how many claims the fund will process or whether any of Trump’s separate demands for money tied to past investigations are fully resolved by this agreement. The settlement filing follows weeks of negotiations and media reports that the suit would be dropped in exchange for creation of a fund to address weaponization claims.