US Judge Voids Trump $1.8 bn IRS Settlement
On Monday, US District Judge Kathleen Williams invalidated a settlement that had granted former President Donald Trump immunity from IRS tax audits and opened a $1.8 billion “anti‑weaponisation” fund for alleged political victims. The order also names the plaintiffs as lacking a genuine legal dispute and directs a review of the involved lawyers for potential ethics violations.
The “settlement” was reached in May when Trump dropped a $10 bn lawsuit against the IRS that the judge now says was filed for an improper purpose. The court characterised the case as a political manoeuvre rather than a real legal conflict, citing connections between the plaintiff lawyers and Trump’s associates.
In consequence, the IRS can resume audits of Trump, his family and businesses, and the public cannot cite the settlement’s terms in future proceedings. Two of Trump’s lawyers, Alejandro Brito and Daniel Epstein, were referred to bar authorities for possible disciplinary action.
The announcement followed earlier government statements that the fund, aimed at compensating those who claimed political targeting, would be abandoned after a judge temporarily blocked its implementation.
Critics across the political spectrum called the programme a “sweet‑heart deal” and warned it could pave the way for payments to individuals linked to the January 6 riot or other political retribution cases.
“It was never about a party seeking judicial resolution of a legal issue or a factual dispute,” the judge wrote. “The settlement is a bid to give legitimacy to an agreement that confers immunity to people and entities affiliated with the President.”
Published 13 July 2026
