President Donald Trump agreed to drop a case he brought against the IRS after an IRS contractor leaked the president's tax returns in exchange for the government's creation of a fund, according to the DOJ.
The plaintiffs in the case—Trump, his sons, and the Trump Organization—will not receive financial recompense but will receive an apology, the DOJ said in a statement.
In addition to the policy, the settlement outlines the creation of the new fund, which officials said will be empowered to issue formal apologies and monetary awards to people who file claims.
“The machinery of government should never be weaponized against any American, and it is this Department’s intention to make right the wrongs that were previously done while ensuring this never happens again,” acting Attorney General Todd Blanche said in a statement. “As part of this settlement, we are setting up a lawful process for victims of lawfare and weaponization to be heard and seek redress.”
A document released by the DOJ says that within 60 days of May 18, the government will provide the Treasury Department with necessary forms and documentation to direct $1.776 billion to an account that will solely be used for an "Anti-Weaponization Fund."
The fund will be administered by five members appointed by the attorney general, one of whom will be chosen after consulting congressional leadership, according to the DOJ. The president has the power to remove any member.
The group will send a report each quarter to the attorney general that will include information on which people have received money.
Claims will be processed for a period of time that will end no later than Dec. 1, 2028.
The DOJ did not immediately respond to a request for more details.
Michael Flynn, who was an official in the first Trump administration, and Carter Page, part of Trump's first campaign, have recently settled lawsuits with the DOJ.
The DOJ document cites a settlement agreement in Trump v. Internal Revenue Service, a case brought in January that alleged that the IRS and Treasury Department did not take precautions to prevent an IRS contractor from obtaining the Trumps’ tax records before leaking them to media outlets. The contractor has pleaded guilty to unauthorized disclosure of tax return information.
The three-page filing did not mention the fund, an apology, or a reason for the dismissal.
Plaintiffs said in an April filing that settlement discussions were underway "to avoid protracted litigation."
On May 18, a spokesperson for Trump’s legal team told news outlets in a statement that the president agreed to the settlement "squarely for the benefit of the American people," and it said that he "will continue his fight to hold those who wrong America and Americans accountable.”