Sources told ABC News the proposed agreement would coincide with President Donald Trump dropping multiple lawsuits against the federal government, including his $10 billion IRS case.
By yourNEWS Media Newsroom
President Donald Trump is reportedly preparing to abandon several major lawsuits against the federal government as part of a proposed agreement that would establish a $1.7 billion compensation fund for individuals who claim they were politically targeted during the Biden administration.
According to an ABC News report, the proposed fund would compensate individuals alleging harm from what Trump allies have described as the “weaponization” of federal law enforcement and intelligence agencies.
Sources familiar with the negotiations told ABC News the fund could include compensation for January 6 defendants, conservative activists, and entities associated with Trump that claim they were subjected to politically motivated investigations or prosecutions.
The proposed settlement would reportedly resolve multiple legal disputes involving Trump and federal agencies, including Trump’s $10 billion lawsuit against the Internal Revenue Service over the leak of his tax returns.
The settlement discussions also reportedly involve separate legal claims valued at approximately $230 million connected to the 2022 FBI search of Mar-a-Lago and investigations tied to allegations of Russian collusion during Trump’s first term.
Under the reported proposal, a five-member commission would oversee the compensation fund and possess authority to distribute taxpayer funds to claimants alleging politically motivated targeting.
Sources told ABC News the commission would be permitted to operate with limited disclosure requirements regarding its internal procedures and compensation decisions.
The report stated that the proposed fund would likely draw financing from the Treasury Department’s Judgment Fund, which is typically used to satisfy federal settlements and court judgments.
According to ABC News, Trump himself would be prohibited from directly receiving money from the settlement tied to his legal claims, although entities connected to him would not necessarily be barred from submitting future claims.
The proposal would also reportedly include a formal public apology from the IRS.
In a statement provided to ABC News, a spokesperson for Trump’s legal team said, “The IRS wrongly allowed a rogue, politically-motivated employee to leak private and confidential information about President Trump, his family, and the Trump Organization to the New York Times, ProPublica and other left-wing news outlets, which was then illegally released to millions of people.”
“President Trump continues to hold those who wrong America and Americans accountable,” the spokesperson added.
The Department of Justice declined to comment to ABC News regarding the reported negotiations, while the IRS and Treasury Department did not immediately respond to requests for comment.
The proposal has reportedly generated concern among some administration officials over ethics and oversight issues, particularly because Trump would maintain authority to remove members overseeing the commission.
ABC News reported that the compensation structure is being discussed as a hybrid model combining aspects of a victim compensation fund and a truth-and-reconciliation commission.
The concept follows the Justice Department’s ongoing Weaponization Working Group, which was established to investigate alleged abuses of power and anti-conservative bias within the federal government.
The negotiations also arrive as courts continue scrutinizing Trump’s lawsuits against federal agencies.
Earlier this month, U.S. District Judge Kathleen Williams ordered Trump and the Justice Department to explain why the IRS case should proceed given that the president oversees the agencies he is suing.
In her ruling, Williams questioned whether Trump and the federal defendants were “sufficiently adverse” for the lawsuit to continue.
ABC News reported that final settlement terms remain under negotiation and could still change before any official announcement is made.
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