MIAMI — A federal judge has ordered a new review of the controversial settlement that ended President Donald Trump's $10 billion lawsuit against the Internal Revenue Service, intensifying legal scrutiny of the administration's $1.8 billion Anti-Weaponization Fund.
U.S. District Judge Kathleen Williams said she will examine allegations that the settlement may have involved misconduct or deception after a bipartisan group of 35 former federal judges urged the court to reopen the case. The former judges argued that the agreement raises serious questions about transparency, judicial oversight, and the creation of a massive taxpayer-funded compensation program.
The settlement ended Trump's lawsuit over the leak of his tax records and led to the creation of a nearly $1.8 billion fund intended to compensate individuals who claim they were victims of political "weaponization" by the federal government. The Justice Department has defended the arrangement, saying the fund is designed to address alleged abuses and is not restricted to any political group.
However, the program has triggered criticism from legal scholars, former judges, Democrats, and even some Republicans. Opponents argue the agreement is highly unusual and could allow federal money to be distributed without sufficient oversight. Concerns have also been raised about who could ultimately qualify for payments.
The legal pressure is growing on multiple fronts.
In a separate case, another federal judge recently paused implementation of the Anti-Weaponization Fund while challenges to its legality move through the courts. The temporary block prevents payouts while judges review whether the fund complies with federal law and constitutional requirements.
Judge Williams has ordered Trump's legal team to respond to the allegations by June 12, setting up what could become a major legal showdown over one of the most controversial government settlements of Trump's presidency.
The outcome could determine not only the future of the $1.8 billion fund but also whether the original IRS lawsuit settlement survives further judicial review.