President Donald Trump and his sons announced on Friday, July 31, 2026, that they are appealing a court ruling that blocked a settlement he reached with the federal government in his $10 billion lawsuit against the IRS.

The lawsuit stemmed from the leak of Trump's confidential tax information by an IRS contractor during his first term. Trump had filed the suit seeking damages but agreed to forgo any personal compensation in exchange for the creation of a $1.776 billion "anti-weaponization" fund. This fund was intended to compensate individuals who could prove they were victimized by the Biden Justice Department.

However, U.S. District Judge Kathleen Williams declared the settlement null, accusing Trump and the Justice Department of colluding to avoid court scrutiny. She described the proceeding as a sham and barred Trump and his family from citing the settlement as legal precedent in future actions.

Despite the ruling and reports that the fund was inactive, Trump defended the compensation effort on social media, stating, "I will always feel that these victims of government abuse should be paid back for what they were forced to endure, their lives have been ruined!"

The appeal comes amid some Republican senators expressing hesitation about confirming related appointments.

Sources