On July 15, 2026, Acting Attorney General Todd Blanche announced a controversial settlement agreement between President Donald Trump and the IRS involving $1.8 billion in taxpayer funds designated for targets of so-called "lawfare and weaponization." Former FBI Director James Comey remarked, "I'm guessing I'll be in line," highlighting concerns about the settlement's implications.

The settlement followed a lawsuit filed by Trump, joined by two of his sons and the Trump Organization, which alleged that an IRS contractor's illegal disclosure of their tax returns caused "at least" $10 billion in damages. However, the lawsuit was filed more than two years after the leak was known, exceeding the statute of limitations, and faced legal challenges over whether the contractor qualified as an officer or employee of the United States—a point disputed by the Justice Department in similar cases.

A federal judge, Kathleen Williams of the Southern District of Florida, ruled that the lawsuit was a pretext for "a 'settlement' that had no viable basis in law or fact," noting that both parties were controlled by the president, thus lacking a genuine controversy.

Despite bipartisan backlash, Blanche approved the settlement, which included an "Anti-Weaponization Fund" that he later abandoned two weeks after its announcement. The deal also shielded Trump and his relatives from liability for tax violations and other federal offenses, potentially saving the president over $100 million in back taxes, interest, and penalties.

Blanche's actions have raised alarms about his eagerness to please the president, calling into question his suitability for the attorney general role, which traditionally requires impartial pursuit of justice rather than advancing a president's personal agenda. Blanche also accused Comey of committing federal felonies for posting a photograph of seashells arranged to form the slogan "86 47," an expression of opposition to the president.

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