President Donald Trump moved Monday to withdraw his $10 billion lawsuit against the IRS over the leak of his tax returns, filing a dismissal in federal court in Florida where the case was originally filed.
ABC News first reported last week that the lawsuit’s withdrawal was tied to a deal that would create a $1.7 billion fund to compensate Trump allies who claim they were wrongly investigated and prosecuted under the Biden administration. The court filing itself did not reference any deal terms.
The prospect of the fund drew immediate condemnation from Democrats. Rep. Jamie Raskin, the top Democrat on the House Judiciary Committee, called it a “political grievance fund” on ABC’s ‘This Week’ Sunday, saying the idea that “Donald Trump can just pass it out like a pardon is absurd.”
The lawsuit stemmed from the 2024 sentencing of former IRS contractor Charles Edward Littlejohn, who received five years in prison after pleading guilty to leaking Trump’s confidential tax records to news outlets between 2018 and 2020. Trump’s sons Donald Trump Jr. and Eric Trump were also named plaintiffs in the suit.
The court filing did not clarify who would be eligible for the proposed fund, and this is a developing story.
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