In a striking departure from past norms, the Trump administration has created a $1.776 billion fund that critics say effectively pays off the president's allies and grants him immunity from tax investigations. The fund stems from a settlement between the Justice Department and the Trump family over a lawsuit against the IRS regarding leaked tax information.
Emily Bazelon and David French, both legal experts and journalists, argue that this move goes far beyond previous controversies. They compare it to a 2017 memo by then-Attorney General Jeff Sessions, which barred the Justice Department from directing settlement payments to third parties. That memo was a response to Obama-era settlements where banks paid money to community groups instead of directly compensating victims.
But the current settlement is different: it creates a massive fund controlled entirely by Trump, to be distributed as he sees fit. The agreement also includes an addendum granting Trump, his family, and his businesses perpetual immunity from tax investigations, according to acting Attorney General Todd Blanche.
"He's creating a slush fund under his total control, to use how he wants, using payment procedures he defines," French said. "And the fund is huge — $1.776 billion can make a lot of members of MAGA millionaires."
Bazelon noted the irony: Sessions' 2017 memo was meant to prevent exactly this kind of self-dealing. "The Obama-era practice was not the same as the $1.776 billion fund that the Trump Justice Department recently announced," she wrote. "This time, D.O.J. is going around Congress to pay off Trump's allies in exchange for Trump and his family dropping a dubious $10 billion lawsuit against the I.R.S."
The settlement raises serious questions about the rule of law and the politicization of the Justice Department. Critics say it sets a dangerous precedent, allowing a president to use federal funds to reward supporters and shield himself from scrutiny.