Trump moves to drop $10B IRS lawsuit in exchange for a $1.7B fund paid without a congressional vote

ABC News and CNN reported on May 13-14, 2026, that Trump was poised to drop his $10 billion IRS lawsuit in exchange for the creation of a $1.7 billion compensation fund drawn from the Treasury Department Judgment Fund — requiring no new congressional appropriation. The proposed fund would pay anyone who claimed the Biden administration weaponized the legal system against them, including approximately 1,600 individuals charged in connection with the January 6, 2021 Capitol attack and potentially entities associated with Trump himself. A Trump-appointed commission with full authority to distribute the funds would operate with no disclosure requirements, and Trump would retain the power to remove commission members without cause.