Judge Overturns Trump Tax Settlement and $1.8 billion ‘Anti‑Weaponisation’ Fund

A U.S. judge has voided the legal agreement between former President Donald Trump and federal agencies that granted him immunity from IRS audits and allowed his administration to set up a now‑abandoned $1.8 billion fund. The fund, which was intended to compensate people who claimed they were unfairly targeted by the government, was unveiled in May in exchange for Trump dropping his $10 billion lawsuit against the IRS.

Judge Kathleen Williams said the lawsuit was filed for an improper purpose and referred Trump’s lawyers to state authorities to determine whether ethics rules were violated. The decision also prevents Trump, his sons, and the Trump Organization from citing the settlement in future legal proceedings, potentially opening the door for the IRS to audit Trump’s tax claims again.

In the lawsuit, Trump alleged that a former IRS contractor leaked his private tax information, which was later used in a New York Times investigation that revealed he paid only $750 in federal income taxes in 2016 and none in ten of the previous fifteen years. The judge described the settlement as a bid to give legitimacy to an agreement that conferred immunity to those affiliated with the President and earmarked billions from taxpayers for grievances not defined in law.

One of Trump’s attorneys was referred to the Florida bar for possible disciplinary action, and another lawyer will be barred from joining cases in the Southern District of Florida for at least a year. A spokesman for Trump’s legal team blamed a rogue employee for leaking sensitive information and defended the president’s standing against those wronging America.

The move has been described as a “sweetheart deal” that gave Trump extraordinary exemptions from tax audit rules, and experts say the court’s decision is a step toward preventing similar presidential self‑dealing in the future. The controversial fund was abandoned in early June after a judge temporarily halted its implementation following a lawsuit by people who argued it discriminated against them.