The Department of Justice has “forever barred” the Internal Revenue Service (IRS) from auditing President Donald Trump and his family, and their companies. This ruling came after Trump dropped the $10 billion lawsuit over leaked tax returns. The document with the order is signed by the acting attorney general, Todd Blanche. According to the sweeping document, the IRS cannot audit Trump’s tax returns, including any matters “that were raised or could have been raised.”
The Justice Department also formed a $1.8 billion fund for victims of political weaponization by the U.S. government. This billion-dollar fund is part of the settlement. It aims to compensate those targeted by the previous administration.
The IRS is barred from investigating President Donald Trump or his family for past tax issues under new terms added to a controversial lawsuit agreement with the Department of Justice. https://t.co/nRenMFFnAr pic.twitter.com/bGbrjbPEl4
— CNN (@CNN) May 19, 2026
This fund will be allocated to Trump’s allies affected by the Joe Biden administration and the January 6, 2021, Capitol rioters. There was no mention of the additional settlement on Tuesday. Even so, the Trump administration decided to move forward with it.
The Trump organization praised the settlement in a statement, “sends a clear bipartisan message that the weaponization of federal agencies for political purposes will not be tolerated.” The documents state the government is “FOREVER BARRED and PRECLUDED” from pursuing any claims, such as tax returns filed by Trump, before the agreement was reached. This applies to any Trump affiliates, trusts and companies.
Meanwhile, both Democrats and Republicans have condemned this verdict. Rep. Richard Neal, the senior Democrat,, called the settlement fund proof of corruption. He wrote in a social media post, “Trump has turned the federal government into his personal protection racket by making sure his, his family, and his companies’ taxes are permanently off limits. The same people struggling with groceries and gas are now forced to bankroll this billionaire’s legal shakedown and the enrichment of his family empire.”
Blanche assured that Trump’s allies have not applied for payments via the fund. Moreover, Associate Attorney General Stanley Woodward claimed that it’s “way too early” to predict how the fund will be operated.
Donald Trump has not only ROBBED YOU of $1.8 billion to reward his allies, but he just used his own government to permanently shield himself, his family, and his businesses from IRS accountability.
The Justice Department quietly released a document this morning that “RELEASES,… pic.twitter.com/2ruw7Yf0EE
— Rep. Mike Levin (@RepMikeLevin) May 19, 2026
As for Trump’s ballroom project, Republicans seem to object to the use of taxpayers’ money to complete the project. After the WHCD shooting, the administration wanted a fund to be approved, citing national security issues. Trump claimed a shooting incident would not have happened in the ballroom.
Earlier, the project was not going to rely on taxpayers’ money but was supposed to be privately funded. According to Politico, the Senate GOP may no longer support the legislation. The report read, “Four Republican senators have raised public objections to spending taxpayer money on the project, possibly enough to kill it given the broad Democratic opposition. A larger group of Republicans is privately opposed to the funding, according to five people granted anonymity to disclose internal deliberations.”
A part of the same funds may be allocated to the East Wing modernization project, including the ballroom. Sen. Bill Cassidy confirmed he won’t be voting for the ballroom fund. In addition, Lisa Murkowski (R-AK) said, “One billion in ballroom funding is just not going to fly, right? It’s just not going to fly.” However, these are ongoing conversations and nothing concrete has been decided yet.









