DOJ Abandons Compensation Fund Amid Controversy Over Trump's Tax Protections

The Department of Justice has permanently halted plans for a $1.8 billion compensation fund intended to resolve a lawsuit filed by President Donald Trump against the Internal Revenue Service. Acting Attorney General Todd Blanche disclosed this decision during a House panel testimony, emphasizing that the DOJ will not proceed with the fund amid ongoing legal challenges.

Despite the fund's discontinuation, Blanche confirmed that Trump, his family, and their business entities remain protected from tax audits and enforcement actions concerning tax returns filed prior to last month’s settlement of the lawsuit. Blanche, who previously served as Trump’s defense attorney, approved an addendum on the settlement that affords this protection. This addendum also prevents the DOJ from prosecuting Trump and his associates over matters labeled as "Lawfare and/or Weaponization," terms which remain undefined.

In response to questions from lawmakers, Blanche asserted that the department would not revive the compensation fund, regardless of the legal proceedings challenging it. Representative Rosa DeLauro expressed her frustration, claiming that the agreement effectively granted Trump significant tax immunity. Blanche contested this characterization, stating that the settlement is common practice for resolving ongoing audits with the IRS and does not confer future immunity to Trump or his family.