Waste of the Day: Payouts for Trump Allies
Topline: President Donald Trump withdrew a lawsuit he had filed against his own administration — instead planning to create a $1.8 billion slush fund that would compensate alleged victims of Joe Biden’s “weaponization” of the legal system. The fund managers would not be required to give a public explanation of their spending, and Trump would be able to remove members of the commission running the fund without cause, according to ABC News.
Key facts: The “Anti-Weaponization Fund” would be led by four commissioners appointed by the attorney general and one appointed with congressional input.
Anyone who argues they were unfairly targeted by the Biden administration could request compensation from the fund. That includes Trump allies who were subject to federal investigations or prosecutions, as well as the 1,600 people charged with participating in the Capitol riots on Jan. 6, 2021. Trump himself would not receive a payment.
In exchange, Trump has already filed with the court to drop the $10 billion lawsuit he filed against the Internal Revenue Service this January, alleging the IRS failed to safeguard his tax returns from being leaked by a contractor in 2019. Democratic lawmakers and outside critics pointed out legal and ethical issues with Trump suing an IRS that now reports to him.
Oversight of the planned slush fund appears to be limited. Acting Attorney General Todd Blanche said in a memo that the federal government would not be liable for any “fraud or other misuse” of the taxpayer money.
Trump’s lawyers also argued that “no judicial analysis is appropriate” to determine the legality of the agreement.
Trump previously said he would donate any winnings from the IRS lawsuit to charity.
Trump would also drop lawsuits he filed in 2022 and 2024 related to the federal government’s investigation into alleged collusion with Russia during the 2016 presidential campaign, and the Federal Bureau of Investigation's search of his Mar-a-Lago estate.
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Supporting quote: “The machinery of government should never be weaponized against any American,” Blanche said in a statement. “As part of this settlement, we are setting up a lawful process for victims of lawfare and weaponization to be heard and seek redress.”
Critical quote: Democrats in the House Ways and Means Committee filed a legal motion on May 18 to block Trump’s plans.
“Trump suing the IRS was never about justice, it’s another self-enrichment scheme on the backs of hard-working taxpayers,” Rep. Richard Neal said. “Now, with the Court poised to weigh in only days from now, Trump is scrambling to cut a backroom deal and solidify his position as the judge, jury, and executioner.”
Summary: Politics aside, the government should not spend $1.7 billion in taxpayer money to anyone who requests it, without full transparency into its decision-making process and hefty measures to prevent waste and fraud.
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