Judge Kathleen Williams voids Trump's $1.8B IRS settlement

newsJul 14, 2026331,803

U.S. District Judge Kathleen Williams on Monday nullified the agreement the Justice Department reached with Donald Trump and his sons to resolve a $10 billion lawsuit over leaked tax returns, saying the suit was brought "for an improper purpose." Williams said the parties had used the courts to try to give judicial legitimacy to a deal that created a $1.8 billion fund to compensate alleged victims of "government weaponization" and that would have granted Trump, his family, and related entities immunity from IRS audits. The Justice Department quietly abandoned the $1.8 billion fund after bipartisan backlash, but the tax-immunity language remained in place until Williams blocked it. In a 56-page ruling she concluded there was never a genuine controversy because Trump controlled the Treasury, found the settlement collusive, and sanctioned Trump’s lawyers for their conduct. Williams noted specific problems such as one lawyer, Daniel Epstein, failing to seek permission to appear in the Florida case and the government's failure to address emoluments or other legal constraints on the agreement. The judge ordered that neither side may use, offer, admit, or cite the settlement in any proceeding and sent copies of her order to legal disciplinary authorities, including where acting Attorney General Todd Blanche is licensed.

Norm Eisen

@normeisen.bsky.social

Judge Williams didn’t just rule against Trump…she referred his lawyer to the FL bar & sent her order to the bars of Todd Blanche & Stanley Woodward Blanche’s AG confirmation hearings start Wednesday & Senators should read every page of her order first 👇 -TN

62445d ago

Ariana Niko12

Getting referred to the bar isn’t some paperwork glitch. Judges don’t do that for fun. If this had happened to almost anyone else Republicans would’ve been screaming about ethics all day. Somehow when it’s Trump everybody suddenly finds a reason to shrug.

rcinnc17

Perfect timing. Just before the confirmation hearing.

sherwood714.bsky.social6

Blanche colluded to give Trump not $2,000 not $200,000 not $2,000,000 but $2,000,000,000 from the USA treasury. this has to be one of the largest “settlements” the judge has ever seen!! and it was all phony baloney!!

glameyedoc.bsky.social4

In other news, Senator Collins is concerned , but certain Blanche has learned his lesson!

David2

Some of us wrote about this corruption. cbwrong.blogspot.com/2026/05/trum...

Laurie R2

Every person who resides in a red state who has a Republican Senator(s) needs to call them TODAY!! NO to Todd Blanche for AG!! He transferred Maxwell (the EVIL child trafficker to Jeffrey Epstein) to a yoga and puppy camp!! Pass it on!!

Quoting this

aheadbyacentury.bsky.social5

Luckily, lower courts are holding. Too bad the top court does not back them up... "Winter is coming"

Scott Dworkin

@dworkin.bsky.social

Everyone else let the Epstein files stay buried. New Mexico AG Raúl Torrez gave the DOJ a deadline. Full story here:

40445d ago

David4

Crimes were committed and there must be accountability. cbwrong.blogspot.com/2026/07/when...

Americans for Tax Fairness

@4taxfairness.bsky.social

Trump sued his own IRS for $10 billion. Those are taxpayer dollars. He used it to negotiate immunity from IRS audits for himself and his businesses + a $1.8 billion slush fund for Jan 6 rioters and his friends. A federal judge shut it down and called it "self-dealing."

14644d ago

Mark VDH2

And hopefully Tool Blanche will be disbarred.

The Contrarian

@contrariannews.org

A federal judge shut down Trump's IRS lawsuit that he controlled both sides of the litigation on. After filling, Trump said, “I am supposed to work out a settlement with myself.” He also declared, “I have absolute right to do what I want with the Justice Department.”

12544d ago

Kitty WH 🚺3

They should be disbarred. Sanctions are the quislings’ preference.

Carter Sanders1

I think that you meant to say "filing" and not "filling" there.

The Watchdog Coalition

@thewatchdogco.bsky.social

A judge stopped the $1.8B slush‑fund deal. New Mexico is coming for the Epstein files. Sarasota shut the door on Big Tech. Four fights. Four wins. All from people who refused to be bought or scared.

6045d ago

Wes Smith Ω 🧢

@wessmith123.bsky.social

Judge Kathleen Williams ain’t havin’ it. 👉 Let the disbarments break out like rolling thunder. Just in time for Blanche’s confirmation hearings. www.rawstory.com/todd-blanche...

5445d ago

Paul Rosenberg

@paulrosenberg.bsky.social

What Trump's DOJ is trying here is strikingly similar to Trump vs IRS. It's a bad faith legal move & the judge should disallow it as such.

3944d ago

John Pontoon, dissident titwillow1

And also, crucially, refer the attorneys involved to their state bar associations for possible disbarment.

JoinTheATeam1

Maybe we can get rid of more bad lawyers willing to work with his lies

M Meerkat

@kackbro.bsky.social

US District Judge Kathleen Williams Completely Voided Trump's $1.8 Billion Anti- Weaponization Fund, And Called Trump's IRS Lawsuit A "Sham", While Suggesting Todd Blanche Receive Disciplinary Action....... (The Hill,CNN)

3745d ago

The Democratic Coalition

@thedemcoalition.bsky.social

They buried the Epstein files. New Mexico picked up a shovel. A judge blocked Trump’s $1.8B grab. A county slammed Big Tech out. Millions refused to flinch. If you need proof the guardrails still hold, it’s right here.

3945d ago

kvconner.bsky.social

@kvconner.bsky.social

Sen. John Cornyn (R-Texas) key member of the Senate Judiciary Cmte, says he is “concerned” about acting AG Todd Blanche’s role in crafting a settlement b/n Trump, and the IRS and the DOJ to shield Trump and his family from IRS audits for years to come by Alexander Bolton thehill.com/homenews/sen...

2944d ago

ATinATx2

By "concerned" he means he'll vote to confirm him anyway.....pedos lie, don't you know.

Bea1

do something about it or shut the fuck up, john.

Walter Olson

@walterolson.bsky.social

The confirmation hearings will help air Blanche's role in Trump's corrupt IRS deal, locking up the Epstein papers, and the White House deployment of criminal law against its enemies. But Senators should not forget the henchman's prospective role in meddling with the midterm election. [Bob Bauer]

2344d ago

James E. Clyburn

@repjamesclyburn.bsky.social

So to sum it up: Trump orchestrated a lawsuit against the government he controls to secure $1.8 billion in taxpayer money for his allies and immunity from tax crimes for himself, his family, and his businesses—potentially saving them more than $100 million. Wildly corrupt.

2344d ago

@Cali-Candace.bsky.social

@cali-candace.bsky.social

And ask the Judge to refer Blanche to the NY State Bar just as Judge Kathleen Williams did! www.usatoday.com/story/opinio...

2245d ago

Andreas 🇨🇦 Fella 💙 #AbolishICE, #SlavaUkraini

@andreasor.bsky.social

This seems like a big deal... "The judge also directed that a copy of her order be sent to legal disciplinary authorities in New York, where Blanche has his law license," U.S. judge finds Trump misused court in IRS case, refers lawyers for discipline | Reuters share.google/StU3sdGT67Ma...

1944d ago

AltStateGov

@altstategov.altgov.info

Meanwhile, Rep Max Miller's attorney, Brito, represented trump in the $10 billion lawsuit against the IRS, which resulted in Brito being referred for possible discipline. Incredible

1844d ago

3 sources

cnbc.comJudge says Trump sued IRS for 'improper purpose'; refers his lawyer to bar theguardian.comUS judge nullifies Trump deal to resolve IRS lawsuit in scathing ruling emptywheel.netJudge Kathleen Williams Hoists the Unitarians on Their Fraudulent Petards - emptywheel

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Judge Kathleen Williams voids Trump's $1.8B IRS settlement

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