Trump 'shakedown' gives buddies a cut of taxpayers’ money: analysis

15 May

U.S. President Donald Trump reacts as he attends the premiere of the documentary film Melania, in Washington, 2026 (REUTERS)

President Donald Trump reportedly may drop his $10 billion lawsuit against the IRS in a settlement handing him control of a $1.7 billion “MAGA slush fund” to compensate victims of government abuse, according to The New Republic‘s Greg Sargent, who calls it a “shakedown.”

Citing an ABC News report, Sargent explains that the proposed settlement “would create a ‘commission’ with ‘total authority’ to settle ‘claims’ brought by those who allege such weaponization. Per ABC, this not only includes the insurrectionists; it could even settle purported claims by ‘entities associated with President Trump himself.’ By all indications it would operate with little-to-no congressional oversight.”

U.S. Rep. Jamie Raskin (D-MD) told Sargent it is “a shocking new betrayal of the Constitution.”

This “new MAGA slush fund,” Sargent says, would come from an existing Justice Department fund that has strict controls, including transparency requirements. But “Trump would wield quasi-direct control” over the $1.7 billion, including being able to fire commission members “without cause,” and “it wouldn’t be required to disclose its decision-making involving who gets awarded compensation.”

Raskin told Sargent, the “Judgment Fund exists to settle valid judgments against the United States government.”

Raskin said that Trump and his allies are “trying to take money from the Judgment Fund while eliminating any controls and oversight” and put it under Trump’s “direct unilateral control.”

Because Congress did not set up any fund like this it could be unconstitutional.

“Congress never would have passed a $1.7 billion slush fund for his friends—this is completely outside of our constitutional framework,” Raskin said. He called it “an outrageous desecration of congressional power of the purse.”

Raskin also noted that the Constitution’s 14th Amendment prohibits government from assuming any “obligation incurred in aid of insurrection or rebellion against the United States.”

So if Trump wants to use the $1.7 billion to compensate the January 6 rioters, he will be “using federal taxpayer dollars to compensate people who participated in insurrection,” according to Raskin.

Trump and his lawyers “are figuring out a way to refund the January 6 militia, presumably to get them ready for the next round of battle,” Raskin said.

“So at bottom,” Sargent concludes, “payments from this fund might ultimately serve as a form of coalition management: They’ll keep large swaths of his coalition persuaded that a win for Trump, no matter how illicit or ill-gotten, is a win for them. That his corruption isn’t just in his own interests, but in theirs, too. Because, after all, they’re getting a cut of the spoils.”

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