Trump’s IRS Settlement: Audit Immunity and the Abandoned “Anti-Weaponization” Fund

In May 2026 the Justice Department, led by Acting Attorney General Todd Blanche, settled President Donald Trump’s $10 billion lawsuit against the Internal Revenue Service. The deal includes a one-page addendum that “forever bars and precludes” the IRS from pursuing tax examinations of Trump, his family, trusts, affiliates and related companies. Simultaneously, the agreement created a $1.8 billion “anti-weaponization” fund to compensate individuals who claim they were targeted by government investigations, including many Jan. 6 defendants. The fund has since been abandoned, while the audit-shield provision remains in force.

The Independent

The lawsuit followed a leak of Trump’s tax returns by a former IRS contractor, prompting the president to allege “weaponization” of the agency. Settlement talks were conducted by a close-knit team that included Blanche—who previously served as Trump’s criminal-defense lawyer—and the president’s private attorney Boris Epshteyn. The addendum’s language is unprecedented, extending protection to any matter the government labels “lawfare” or “weaponization,” without defining those terms.

The Independent

• Todd Blanche – Acting Attorney General, signatory of the settlement and audit-immunity addendum.

JURIST

• Donald Trump – Former president, plaintiff in the original lawsuit.

The Independent

• Boris Epshteyn – Trump’s private lawyer who coordinated settlement talks.

New York Times

• Scott Bessent – Treasury Secretary, repeatedly declined to comment on the settlement.

Bessent faces questions over his refusal to testify on Trump’s IRS settlement

• Mitch McConnell, Jamie Raskin, Ben Ray Lujan, Ron Wyden – Congressional leaders voicing opposition.

The Independent

• Judges Leonie Brinkema and Kathleen Williams – Federal judges overseeing challenges to the settlement.

Slate

• May 18 – Settlement announced; anti-weaponization fund created.

Slate

• May 19 – Addendum signed, granting audit immunity.

Senator presses Bessent: Will other taxpayers get Trump’s IRS audit shield?

• May 27 – Judge Williams scheduled a hearing on the lawsuit’s justiciability (later postponed).

Slate

• May 29 – Judge Brinkema issued a temporary restraining order on the fund.

Slate

• June 2 – Blanche publicly affirmed the audit shield remains.

New York Times

• June 3 – Bessent declined to comment on the immunity provision.

Bessent faces questions over his refusal to testify on Trump’s IRS settlement

• June 12 – Courts set hearings on both the fund injunction and the reopened lawsuit.

Slate

The fund was valued at $1.776 billion–$1.8 billion, depending on the source. The audit-immunity addendum could protect Trump from a pending IRS audit estimated at over $100 million; Forbes projected total savings of more than $600 million for Trump-related businesses.

Latin Times

Republican senators warned the fund “feels like Trump cut a deal with himself,” while Democratic leaders called the audit shield “outrageous” and urged legislation to nullify it. Legal challenges allege violations of the First Amendment, the Appropriations Clause and equal-protection guarantees. Plaintiffs—including former DOJ prosecutor Andrew Floyd and professor Jonathan Caravello—argue the fund discriminates against non-Republican claimants.

JURIST

Blanche told lawmakers the fund would not proceed and that the audit-immunity provision remains unchanged. Treasury Secretary Bessent cited ongoing litigation as the reason for his silence. Congressional leaders, including Rep. Linda Sánchez and Sen. Jamie Raskin, have demanded congressional action to overturn the immunity.

Bessent faces questions over his refusal to testify on Trump’s IRS settlement

• “We are not moving forward with the fund, period,” — Todd Blanche, Acting Attorney General

JURIST

• “So, the nation’s top law enforcement official is asking for a slush fund to pay people who assault cops? Utterly stupid, morally wrong—take your pick.” — Mitch McConnell, Senate Republican Leader

Slate

• “ “Congress must act to extinguish this outrageous claim of lifelong, lawless impunity for any misconduct, ‘whether presently known or unknown,’ which could include Jared Kushner’s corrupt business deals in the Middle East, no-bid government contracts Donald Trump Jr.” — Jamie Raskin, Representative

The Independent

• “There's continuing litigation, and I'm unable to comment on ongoing litigation,” — Scott Bessent, Treasury Secretary

Latin Times

• “If someone didn’t pay their taxes or violated tax law or did bad things, are they told, ‘Can’t prosecute you, you’re good.’ … Or is this only for President Trump and his affiliates?” — Ben Ray Lujan, Senator

The Independent

• “court is empowered to investigate serious misconduct.” — Judge Kathleen Williams

JURIST

Sources differ on the fund’s exact size ($1.7 billion vs. $1.8 billion) and its current status—some describe it as “dead,” others note it remains under judicial review. Estimates of the audit-shield’s financial impact range from $100 million to $600 million. The scope of immunity is also contested: a few reports say it applies only to existing audits, while others claim it blocks future investigations altogether.

Latin Times

Both judges have set June 12 hearings to decide the fund’s fate and to assess whether the settlement was collusive. Democrats plan to introduce legislation to repeal the audit-immunity provision, and the Justice Department must justify the addendum’s legality before the courts.

Slate