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Federal Judge Blasts Trump’s $10 Billion Lawsuit Against the IRS

HeadlineJul 14, 2026

A federal judge has blasted President Trump’s $10 billion lawsuit against the IRS, saying it was filed for “improper purposes” and that it was an attempt to use the court “to earmark billions of dollars from American taxpayers.” The judge also penalized Trump’s lawyers, including Attorney General Todd Blanche, for manipulating the judicial process by filing the lawsuit against the IRS over Trump’s leaked tax returns. The lawsuit ended in a settlement that granted President Trump immunity from future tax audits and initially created a nearly $1.8 billion so-called anti-weaponization fund to compensate Trump’s allies. An audit would have hit President Trump with a $100 million tax bill if the IRS found wrongdoing. After substantial public outcry, including from Republican officials, the Trump administration eventually abandoned the anti-weaponization fund. On Monday, Federal Judge Kathleen Williams stated in her ruling that the government cannot claim that its settlement with President Trump was conducted as a part of a legitimate legal process. Judge Williams also requested that a copy of the order be sent to the New York Bar, where Attorney General Blanche is a member and is currently facing multiple ethics complaints.

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