WASHINGTON — Shortly after attorneys for President Trump moved Monday to dismiss his $10-billion lawsuit against the Internal Revenue Service over claims it had leaked his personal tax returns, the Justice Department announced that a settlement in the case would be used to create a $1.776-billion fund for other victims of “weaponization and lawfare.”

“The machinery of government should never be weaponized against any American, and it is this Department’s intention to make right the wrongs that were previously done while ensuring this never happens again,” Acting Atty. Gen. Todd Blanche said in a statement.

Trump has long claimed that the federal government under President Biden went after him and his political allies without justification and in violation of the law.

He has pardoned all of his supporters charged in connection with the Jan. 6, 2021, attack on the U.S. Capitol, along with other political allies, while pressuring the Justice Department to bring cases against his political opponents.

His lawsuit against the IRS had been challenged by Democratic lawmakers, former IRS and Justice Department officials and outside progressive organizations as a blatantly unlawful move by a deeply conflicted president.

It raised questions from the federal judge overseeing it — who had demanded answers this week on whether Trump and his own government were essentially colluding to reach a mutually beneficial agreement in a case in which Trump stood on both sides.

Sen. Ron Wyden of Oregon, the top-ranking Democrat on the Senate Finance Committee, called the potential deal “a stunning act of corruption. … If he follows through, it will be the most brazen theft and abuse of taxpayer dollars by any president in American history.”

Blanche defended the settlement Monday as similar to one reached during the Obama administration to address claims that the U.S. Department of Agriculture had systematically discriminated against Native American ranchers and farmers for decades.

However, experts said the creation of a fund for Trump’s political allies, as part of a deal to settle a lawsuit he had personally brought against his own government, was completely unprecedented — and concerning.

“Essentially the president is on both sides of the ‘vs.’ [in the lawsuit], and has control over the very agency that is responsible for offering the funds, in settlement of a lawsuit that he has brought in his own personal capacity, along with members of this family,” said Bhattacharyya, legal director at the Institute for Constitutional Advocacy and Protection at Georgetown Law. “That has never, ever, ever happened before. No former president of the United States would have been so brazen.”

The lawsuit is one of numerous legal attacks by Trump and his administration against a wide range of the president’s perceived enemies, including universities, media outlets and law firms. A number of those cases were settled with promised payments to a future Trump presidential library, funds sent to the federal government, cash for workforce development programs and free legal work.

The Justice Department said the new “weaponization” fund will be paid for out of the federal Judgment Fund, which is a permanent appropriation by Congress and administered by the U.S. Treasury. It was created to ensure that settlements by and judgments against the government could be paid out without individual appropriations being made each time.

The Justice Department said the fund will cease processing claims no later than Dec. 1, 2028 — shortly before Trump is set to leave office — and that the fund will consist of five members appointed by the attorney general, with the president having removal power.

In a separate court filing Monday in the case, 93 Democrat House members also blasted the potential IRS deal.

“Should this lawsuit achieve Plaintiffs’ desired ends, it would result in the improper and unconstitutional transfer of taxpayer dollars into the pockets of the President, his family, and his allies,” the filing reads.

The initial complaint, brought by Trump, his sons Donald Trump Jr. and Eric Trump, and the Trump Organization, focused on leaks by a former IRS contractor, Charles Littlejohn, to the New York Times and ProPublica of tax information for Trump and other wealthy individuals.

Littlejohn pleaded guilty to the unauthorized disclosure of tax information and was sentenced to five years in prison in 2024.

Progressive legal organizations and former IRS and Justice Department officials have also spoken out against the president’s lawsuit and the looming settlement.

The progressive legal organization Democracy Forward had previously filed a brief in court challenging Trump’s lawsuit as raising serious legal concerns. The February brief was filed on behalf of two other groups — Common Cause and the Project on Government Oversight — as well as four former federal officials, including former IRS Commissioner John Koskinen.

The brief argued that the lawsuit was significantly flawed and barred by a statute of limitation, but also raised “serious concerns about collusive litigation tactics,” and that the court “should exercise its inherent authority to proactively manage” it.

“This case is extraordinary because the President controls both sides of the litigation, which raises the prospect of collusive litigation tactics. Collusive litigation threatens the integrity of the judicial process by risking the Court’s entanglement in an illegitimate proceeding,” the filing said.

The complaint “was filed too late, against the wrong party, and for an unsupported and excessive sum of damages,” the filing said.

Last week, Brandon DeBot, a senior attorney advisor and policy director at the Tax Law Center at New York University Law, and Dave Hubbert, a senior fellow at the center, wrote that the lawsuit was “absurd,” and that a settlement — particularly one in which the IRS would agree to drop any audits of Trump, his family and their businesses — would be “deeply concerning.”

They wrote that the Justice Department has no authority to negotiate any such terms, and that “negotiations involving the President and White House officials to end audits of the President, his family, and his businesses risk violating laws protecting against political interference in tax administration.”

They noted that Congress had “strengthened the tax code’s protections against political interference on an overwhelmingly bipartisan basis following public revelation of President Nixon’s failed attempts to use the IRS to target political enemies,” and that any moves by anyone in the White House to “directly or indirectly” request an audit of the president be suspended would violate the law.

Bhattacharyya, who previously oversaw complex settlement cases at the Justice Department, said the “mechanism” by which any such settlement could be used to facilitate payments directly to Trump’s allies would seem to “deviate” from guidelines for the disbursement of settlements to third parties not part of the initial litigation.

Bhattacharyya said such third-party disbursements were banned under Atty. Gen. Jeff Sessions during Trump’s first term, allowed under very narrow circumstances in environmental and pollution cases under Atty. Gen. Merrick Garland during the Biden administration, and then barred again by Atty. Gen. Pam Bondi in Trump’s second term, before her recent ouster.

A settlement in Trump’s IRS case being distributed to his supporters “would seem to deviate from all of those guidelines,” she said. “It would violate all of them.”

Trump’s legal maneuverings against the IRS come amid wider concerns about mismanagement at the agency and a wider battle over its providing the sensitive data of other taxpayers to Immigration and Customs Enforcement, at the Trump administration’s direction.

Trump removed IRS Commissioner Billy Long in August 2025, allowed Treasury Secretary Scott Bessent to serve as acting commissioner for a time and then created the new position of IRS “CEO,” which congressional Democrats have railed against as a “fake” position designed to avoid congressional oversight while the agency falls into “chaos.”

Congressional Democrats have also demanded answers about the release of taxpayer data to ICE, ostensibly for the purposes of deporting taxpayers who lack proper documentation to be in the country as part of Trump’s massive deportation campaign.

“The IRS now admits that this system led to exactly the kinds of grave mistakes our taxpayer privacy laws were designed to prevent,” Sen. Alex Padilla (D-Calif.) and several other senators wrote in February.

Top Trump administration officials, Republican lawmakers and prominent Christian leaders gathered on the National Mall on Sunday for a massive prayer rally celebrating America’s upcoming 250th anniversary.

The event — “Rededicate 250: A National Jubilee of Prayer, Praise & Thanksgiving” — drew thousands for worship music, speeches and prayers focused on reaffirming the United States as “One Nation Under God.”

President Donald Trump, Vice President JD Vance, Secretary of State Marco Rubio, Defense Secretary Pete Hegseth, Director of National Intelligence Tulsi Gabbard and House Speaker Mike Johnson all addressed the gathering, alongside numerous other political and faith figures.

In a prerecorded message, Trump read from 2 Chronicles 7, reciting the well-known Bible verse calling on people to “humble themselves” and seek God.

TRUMP CALLS ON AMERICANS TO PRAY FOR NATION AS 250TH BIRTHDAY APPROACHES: ‘ONE NATION UNDER GOD’

“If my people, which are called by my name, shall humble themselves, and pray, and seek my face, and turn from their wicked ways, then will I hear from heaven, and will forgive their sin, and will heal their land,” Trump said.

Vance described the United States as “a nation of prayer,” saying faith has shaped the country since before its founding.

“In times of suffering and in times of triumph, millions of Americans continue to turn to prayer and their faith in God,” Vance said.

Rubio similarly tied America’s identity to Christianity.

“From the beginning, we have carried the belief that our country represents something new in the world,” Rubio said. “But the soul of our nation has always been rooted in an ancient faith.”

Gabbard urged Americans to humble themselves before God, saying the nation’s founders “knelt” and “asked for God’s mercy” before declaring independence.

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Johnson delivered a prayer of “rededication,” thanking God for guiding the nation since its founding.

“Heavenly Father, we thank you,” Johnson said. “Thank you so much for this great day that you’ve given us here, and we remember that your mighty hand has been upon our nation since the very beginning.”

Hegseth referenced George Washington’s faith, while Sen. Tim Scott, R-S.C., spoke about Christianity’s role in shaping the nation and argued prayer was central to the Civil Rights Movement.

Alveda King, niece of Martin Luther King Jr., praised Trump for encouraging Americans to “rededicate America to God.”

“This nation was founded on godly principles,” Alveda King told Fox News, adding that Martin Luther King Jr., “spoke to a crowd like this in 1963.”

Actor Jonathan Roumie, who portrays Jesus in “The Chosen,” also spoke at the event, encouraging Americans to recommit themselves to faith and prayer.

NEARLY 500 PUBLIC FIGURES FROM POLITICS TO HOLLYWOOD WILL READ BIBLE COVER TO COVER TO MARK AMERICA’S 250TH

The event also featured appearances from Cardinal Timothy Dolan, Bishop Robert Barron, Rabbi Meir Soloveichik, evangelist Franklin Graham, along with performances from Grammy-winning Christian artist Chris Tomlin, among others.

Many attendees wore patriotic colors as they packed the National Mall.

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Freedom 250, the nonprofit behind the event, said the gathering is part of a broader effort leading up to America’s semiquincentennial celebration on July 4, 2026.

Fox News Digital’s Stephen Sorace and The Associated Press contributed to this report.

HONG KONG — As President Trump left Beijing on Friday, Chinese social media resurfaced a familiar nickname for the president — flattering at first glance — declaring that Chuan Jianguo, the “Nation Builder,” had returned.

It was not meant as a compliment. The nation he is building, according to the Chinese, is not the United States but their own, through a series of inadvertent yet costly mistakes inflicted by Trump at home and abroad.

If the Chinese government was self-assured entering Trump’s summit with Xi Jinping, then the results of the state visit, in which Beijing refused to offer Trump any meaningful deals or concessions, signal their unmistakable confidence in American decline.

Chinese government statements in local media stating as much made their way back to Trump as he was departing, aggravating the president, a U.S. official said. But the White House secured a clarification from the Chinese that seemed to placate Trump. America was only declining under President Biden, they said — not anymore.

President Trump and President Xi Jinping tour Zhongnanhai Garden on Friday in Beijing.

(Evan Vucci / Pool via Getty Images)

The Trump administration argues the trip was a success, having secured the display of conciliation and partnership the president had sought after years of increasingly dangerous acrimony.

Foreign policy hawks on China will be displeased with his new direction of friendship and cooperation with a government they view as openly hostile to the United States. But Trump seems to have reached a similar conclusion as past administrations, that China might require a relationship in pursuit of, as Xi put it, “constructive strategic stability.”

Trump was notably out of character throughout his stay here, deferential to his host, marveling at displays of Chinese power and reticent to speak with the press.

Five times over two days, Trump referred to Xi as his friend, taking every public opportunity to offer his compliments and pats on the back. None of it was reciprocated. The Chinese leader, Trump told Fox News in an interview, was “all business” in private, as well, apparently uninterested in his overtures of personal goodwill.

Presidents Xi and Trump tour Zhongnanhai Garden on Friday.

(Evan Vucci—Pool/Getty Images)

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The summit may ultimately be remembered as the moment when Trump recognized a shifting power dynamic, where an American president had the rare and uncomfortable experience of entering a meeting clearly overmatched.

“I think the most important thing is relationship,” Trump said in the interview, describing the summit as “historic.”

“It’s all about relationship,” he added. “I have a very good relationship with President Xi.”

Taiwan was discussed ‘the whole night’

Little of substance was accomplished over two days of talks. But Chinese officials expected no less after warning Trump’s team before the summit that its minimal preparation had failed to lay the groundwork for diplomatic agreements.

Still, the lack of breakthroughs may come as a relief to some in Washington. Trump appears to have held to a long-standing U.S. line on Taiwan, for now, refusing to provide Xi with clarity on whether the United States would defend the self-ruled island if China tries to reclaim it by force.

The two men discussed the matter “the whole night,” Trump told Fox.

If China attacked, “they would be met harshly, and bad things will happen,” Trump said. Yet within the same answer, he questioned Taiwan’s “odds” against China if war were to break out, even with U.S. help, noting its proximity to the Chinese mainland and its vast distance away from the United States.

Whether Trump will proceed with arms sales to Taiwan — passed by Congress and obligated by law under the Taiwan Relations Act — is still an open question.

“If you kept it the way it is, I think China is going to be OK with that,” Trump said, referencing an ambiguous status quo around Taiwan’s status, “but we’re not looking to have somebody say, ‘Let’s go independent because the United States is backing us.’ ”

“Taiwan would be very smart to cool it a little bit,” he added. “China would be smart to cool it a little bit. They ought to both cool it.”

President Trump departs as President Xi looks on after a visit to Zhongnanhai Garden on Friday.

(Evan Vucci/ Pool via Getty Images)

Curious company

Trump’s choice of company in the U.S. delegation left the Chinese with questions over the purpose of the trip.

Lara Trump, a Fox News host and the president’s daughter-in-law, attended alongside her husband, Eric Trump, whose presence as a private citizen running the Trump Organization was a direct appeal to Beijing to treat the administration like a family business. Brett Ratner, director of the “Rush Hour” series and a documentary on the first lady that bombed at the box office, was given prime placement along with America’s top business leaders.

The last time a secretary of Defense attended a presidential state visit to China was on Richard Nixon’s famous trip in 1972. Chinese officials were unsure what to make of Pete Hegseth’s presence — whether it was meant to convey a softer stance, a hardening one, or simply an ignorance of basic diplomatic protocol.

Trump said he felt personally honored by the lavish welcome he received on the edge of Tiananmen Square, outside the Great Hall of the People, where China hosts all visiting dignitaries.

Before a lunch at Zhongnanhai, the secretive headquarters of the Chinese Communist Party, Trump asked Xi if he was special for getting to visit the compound. He was the fourth U.S. president to do so.

While the Trump administration offered itself glowing reviews of the outcome of the summit, the Chinese government offered little to say as he departed. And Chinese media highlighted Beijing’s resolute stance on American priorities — from trade to the Iran war — as evidence of Chinese confidence and American decline.

But all that business wasn’t the point of the trip, Trump told Fox’s Bret Baier. For the president, it was all personal.

“I want to thank President Xi, my friend, for this magnificent welcome,” Trump said in his toast at the state banquet, repeating the personal overture. “The American and Chinese people share much in common. We value hard work. We value courage and achievement. We love our families and we love our countries.

“Together, we have the chance to draw on these values to create a future of greater prosperity, cooperation and happiness and peace for our children,” Trump added. “We love our children. This region and the world — it’s a special world, with the two of us united and together.”