Full Breakdown
Treasury General Counsel Resigns After $1.8 Billion Fund Announcement
5/19/2026, 9:36:33 PM
Resignation and Fund
On May 18, 2026, Treasury General Counsel Brian Morrissey resigned after seven months. His exit coincided with Justice Department’s announcement of a $1.776 billion “anti-weaponization” fund to settle Donald Trump’s $10 billion IRS lawsuit. Treasury will place the money in an account overseen by a commission appointed by Attorney General Todd Blanche.
Legal Background
Trump claimed the IRS failed to stop unauthorized disclosure of his tax returns. A judge questioned whether a president could sue an agency he oversees, leading Trump to drop the case. The settlement directs Treasury to use Judgment Fund—a pool for settlements that bypasses congressional approval—to finance the anti-weaponization program.
Scope and Numbers
The fund is reported at $1.776 billion, with some outlets rounding to $1.8 billion. It may cover 1,600 Jan 6 defendants and other Trump allies who claim they were “weaponized” by the administration. Eligibility criteria and payout amounts stay confidential.
Official Statements
Treasury issued a statement: “Mr. Morrissey has served the United States Treasury with honor and integrity. We wish him all the best in his next endeavors.” Blanche said fund aims to prevent weaponization of agencies. Trump, at a health-care event, called the arrangement “very well received” and denied involvement.
Criticism & Opposition
Leaders called settlement a slush fund. Sen. Ron Wyden said it was the most brazen theft and abuse of taxpayer dollars by any president. Rep. Jamie Raskin called it pure fraud and highway robbery, warning it would let a party act as both plaintiff and defendant. Sen. Bill Cassidy questioned legal precedent and urged congressional approval.
Conflicting Reports
Sources differ on the fund’s size—some cite $1.776 billion, others $1.8 billion—and on whether payouts will be public. No official list of eligible claimants exists, and legal basis for using Judgment Fund without congressional consent unsettled. Reports mention “formal apologies” from the IRS, while others focus solely on monetary relief.
Verbatim Quotes
- “most brazen theft and abuse of taxpayer dollars by any president in American history.” — Sen. Ron Wyden
- “pure fraud and highway robbery” — Rep. Jamie Raskin
- “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
- “Senior DOJ leadership has willingly put politics before the law, servility to the president before their oaths, and overseen the destruction of the department,” — Gregg Nunziata, Executive Director, Rule of Law
Outlook
Congressional committees have signaled intent to review the settlement, and lawmakers have filed amicus briefs. Treasury’s use of the Judgment Fund and secrecy surrounding beneficiary selection may trigger litigation and prompt legislative proposals to limit settlement authority without congressional approval.
