NEED TO KNOW

• Trump's DOJ created a $1.776 billion fund for "weaponization victims" through an IRS lawsuit settlement.
• The settlement also "FOREVER BARRED" the IRS from auditing Trump, his family, or businesses.
• Two Capitol Police officers filed Wednesday to dissolve the fund.

WASHINGTON (TDR) — Acting Attorney General Todd Blanche told CNN's Paula Reid that Americans "want their tax dollars spent" on the new $1.776 billion Anti-Weaponization Fund his department created Monday through a settlement of President Trump's lawsuit against the IRS.

The big picture: The fund, announced as Trump dropped his $10 billion suit over the leak of his tax returns, will pay claimants who say they were victims of politically motivated investigations. A five-member commission appointed by Blanche decides who qualifies.

Freedom-Loving Beachwear by Red Beach Nation - Save 10% With Code RVM10

• Treasury must move $1.776 billion into the account within 60 days from the federal Judgment Fund.
• One commissioner will be chosen "in consultation with congressional leadership."
• The fund can issue formal apologies and monetary relief without prior litigation.

Why it matters: A separate one-page document signed by Blanche permanently blocks future IRS examinations of Trump and affiliated entities. The IRS is "FOREVER BARRED and PRECLUDED" from pursuing matters that "were raised or could have been raised" in the case.

• The carve-out extends to Donald Trump Jr., Eric Trump, the Trump Organization, and related trusts.
• Trump called the $1.776 billion figure "peanuts."
• Sen. Susan Collins (R-Maine) noted settlements typically follow litigation, not precede future claims.

Driving the news: Two Capitol Police officers injured on January 6, former officer Harry Dunn and MPD Officer Daniel Hodges, filed a federal lawsuit Wednesday to dissolve the fund. Their complaint calls it "the most brazen act of presidential corruption this century."

CLICK HERE TO READ MORE FROM THE THE DUPREE REPORT

• Blanche told Reid that violent offenders aren't categorically excluded; commissioners decide case-by-case.
• The plaintiffs allege the fund will "finance the insurrectionists and paramilitary groups that commit violence in his name."
• Blanche testified Tuesday the fund is "unusual, but not unprecedented."

What they're saying:

• Todd Blanche, Acting Attorney General — "I do not think the American people have issues with that. To the contrary, I think they do want their tax dollars spent on things like that."
• Sen. Chris Van Hollen, Senate Appropriations ranking member — "Mr. Attorney General, this is an outrageous, unprecedented slush fund that you've set up."

Yes, but: The underlying lawsuit had legal merit. Charles Littlejohn, the IRS contractor who leaked Trump's returns, was convicted and sentenced. Where the structure breaks is scope: not just compensating Trump, but creating a forward-looking fund for unnamed future claimants while barring future IRS examinations of Trump entities.

• Republican subcommittee Chair Jerry Moran (R-Kan.) joined Democrats in pressing for eligibility limits.
• Blanche refused to commit to excluding violent January 6 defendants or Trump campaign donors.

Between the lines: Two transfers are happening at once, and only one is in the headlines. The $1.776 billion gets the coverage. The permanent IRS audit shield gets buried. The structural question isn't whether weaponization victims deserve recourse. It's whether a settlement can both create a discretionary fund controlled by Trump appointees and grant the president lifetime immunity from tax review by his own government.

• The IRS bar covers tax returns filed before the settlement and any future matters "that could be pending."
• The money flows from the Judgment Fund without new congressional action, limiting appropriations oversight.

What's next:

• The Dunn-Hodges complaint seeks injunctive relief to block the fund.
• Blanche will appoint the five-member commission, including one consultation pick.
• Senate Appropriations Republicans decide whether to restrict FY2027 DOJ funding.

If a settlement can compensate a real wrong while shielding the plaintiff from future review, where does redress end and self-dealing begin?

Sources

This report was compiled using reporting from CBS News, NPR, The Washington Post, Time, The Hill, The Daily Beast, AOL/The Independent, and Spectrum News

Freedom-Loving Beachwear by Red Beach Nation - Save 10% With Code RVM10