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Trump ties dropping $10B IRS lawsuit to creation of $1.7B fund

newsMay 15, 2026271,163

Donald Trump sought creation of a $1.7 billion "weaponization" fund as a condition to drop his $10 billion lawsuit against the Internal Revenue Service. The proposal would convert the court fight into establishment of a government-funded $1.7 billion account described as addressing "weaponization" of tax enforcement instead of pursuing the $10 billion litigation. If implemented, using taxpayer money to resolve a private high-value claim could set a precedent for settling major disputes outside court and raise concerns about politicizing enforcement resources.

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