Trump Drops $10B IRS Suit, Demands $1.7B ‘Weaponization’ Fund for Allies

President Donald Trump is expected to abandon his $10 billion lawsuit against the Internal Revenue Service (IRS) in exchange for the creation of a new $1.7 billion fund, according to sources familiar with the plan. The fund would compensate individuals and groups that claim they were targeted by government agencies for political reasons. The move, described by insiders as a major shift in strategy, would end a long-running legal battle between Trump and the tax agency. In exchange, Congress would establish a dedicated pool of money to address what Trump and his allies call “weaponization” of federal power. Sources say the proposed fund would be used to provide financial relief to victims of alleged political bias by the IRS, the Department of Justice, and other federal bodies. The exact criteria for receiving payments have not been finalized. Critics argue the plan could reward unproven claims. Supporters say it is a necessary check on government overreach. Neither the White House nor the IRS has publicly confirmed the negotiations.