Nearly 100 House Democrats have gone to court to stop the Department of Justice from creating a $1.776 billion “anti-weaponization” fund, arguing the settlement that created it is an unconstitutional power grab by President Trump.
Acting Attorney General Todd Blanche announced the fund Monday as part of a settlement in Trump’s since-dropped lawsuit against the Internal Revenue Service. Trump had sued the IRS for $10 billion after an agency contractor leaked his tax returns to the press. But Democrats say the entire case was a sham, since Trump controls the agency he was suing.
In a 31-page amicus brief filed in federal court in the Southern District of Florida, 93 House Democrats argue the settlement violates Article III of the Constitution, which requires a genuine dispute between opposing parties. “The unprecedented posture of this suit fundamentally disregards Article III’s case or controversy requirement and raises the specter of corruption unparalleled in American history,” the filing states. “No controversy can exist when the plaintiff controls the defendant, as President Trump does here.”
Rep. Jamie Raskin (D-Md.), the top Democrat on the House Judiciary Committee, called the settlement “pure fraud and highway robbery.” In a statement, Raskin said, “No one can be both plaintiff and defendant in the same case. And no president can concoct a fake case for $10 billion in damages against the government so he can be plaintiff and defendant and then ‘settle’ his bogus case against himself as a judge.”
The fund, which the DOJ says will issue payouts and formal apologies to people who claim the government wronged them, draws on a precedent from the Obama era. The department cited the Keepseagle v. Vilsack settlement, which created a $760 million fund to address discrimination against Native American farmers. But Democrats argue the new fund is a slush fund for Trump loyalists and convicted Jan. 6 rioters.
Raskin warned the money would go to “his private militia of insurrectionists, rioters, and white supremacists, including those who brutally beat police officers on January 6, 2021.” Rep. Joe Neguse (D-Colo.), the assistant House Democratic leader, called the lawsuit “one of the most brazen examples of corruption we’ve seen” from the Trump administration. “The case is unlawful, unethical, and lacks the bare minimum required to file a lawsuit: two opposing parties,” Neguse said.
Rep. Richard Neal (D-Mass.), ranking member of the House Ways and Means Committee, said Trump’s suit “was never about justice, it’s another self-enrichment scheme on the backs of hard-working taxpayers.” He added, “Now, with the Court poised to weigh in only days from now, Trump is scrambling to cut a backroom deal and solidify his position as the judge, jury, and executioner.” Senate Democratic Leader Chuck Schumer (N.Y.) accused the president of devising “a plan to shake hands with himself in order to fund his insurrectionist army to the tune of billions.”
The dispute comes as Democrats grapple with broader political challenges, including a leadership vacuum that has fueled the rise of individual candidates, and as they see openings in red states that could shift control of the Senate. The fund itself has also drawn scrutiny for its potential use in rewarding Trump allies, as the DOJ moves forward with the settlement.
Schumer summed up the Democratic case: “Donald Trump sued his own government. Trump’s DOJ settled with Trump. And now Trump gets a nearly $2 billion slush fund to reward his own allies, loyalists, and insurrectionists. That is not justice. That is corruption happening in broad daylight.”
