On Monday, July 14th, 2026, U.S. District Judge Kathleen Williams issued a sharp ruling against President Donald Trump’s January 29 lawsuit against the IRS, describing it as a pretext to secure a "settlement agreement" that granted significant favors to Trump, his family, and supporters at the expense of U.S. taxpayers.

Judge Williams stated that the plaintiffs and defendants "worked in tandem and were never actually adverse," and that the case was brought for an improper purpose: "to gain the imprimatur of judicial legitimacy for a 'settlement' that had no viable basis in law or fact."

The settlement, announced by Acting Attorney General Todd Blanche on May 18, included $1.8 billion in taxpayer money allocated to an "Anti-Weaponization Fund" intended to benefit Trump’s allies. Additionally, the agreement provided protection from liability for tax violations and other federal offenses committed by Trump or his relatives prior to May 19, potentially saving the president over $100 million in back taxes, interest, and penalties.

The Anti-Weaponization Fund faced bipartisan opposition, leading Blanche to abandon the plan two weeks after its announcement. On May 29, Judge Williams ordered Trump’s lawyers to respond to "grievous allegations" about the arrangement, including "charges of collusion" and claims that the case dismissal was based on deception. She considered whether the case should be reopened, suggesting the court might have been "the victim of a fraud."

The ruling also referenced Trump’s order that precludes the Justice Department from opposing his legal positions and mandates "Presidential supervision and control of the entire executive branch," a stance recently upheld by the Supreme Court in Trump v. This aligns with Trump’s 2017 statement to The New York Times asserting his "absolute right to do what I want to do with the Justice Department."

Sources