Trump appeals federal ruling blocking IRS tax immunity deal and 'anti-weaponization' fund

Jul 31, 2026

Donald Trump appealed a July 13, 2026, federal ruling by Judge Kathleen Williams that blocked a settlement of his $10 billion IRS lawsuit. The deal sought to grant Trump permanent audit immunity and establish a $1.776 billion fund for 'lawfare' victims, potentially including January 6 rioters. The appeal complicates the Senate confirmation of acting Attorney General Todd Blanche, as Republican Senators John Cornyn and Thom Tillis demand written guarantees to permanently void the deal.

Trump settlement ruling appeal

▪U.S. District Judge Kathleen Williams ruled that Donald Trump's lawsuit was brought in bad faith to manipulate the judicial process and achieve self-dealing.
▪The appealed ruling blocked a settlement of a $10 billion lawsuit Donald Trump filed against the IRS and the Treasury Department over leaked tax records.
▪Donald Trump, his adult sons, and the Trump Organization filed a notice of appeal on July 31, 2026, challenging a July 13, 2026, ruling by U.S. District Judge Kathleen Williams.

Lawfare victim compensation fund

▪The blocked settlement proposed creating a $1.776 billion to $1.8 billion anti-weaponization fund to compensate individuals claiming to be victims of government lawfare.
▪Donald Trump acknowledged at a Camp David cabinet meeting on July 31, 2026, that the anti-weaponization fund was dead but expressed regret that it was.

IRS tax audit immunity

▪Donald Trump was in a decade-long audit battle with the IRS over a claimed $72.9 million tax refund, which could cost him over $100 million if lost.
▪The settlement agreement contained a provision permanently barring the IRS from conducting future tax audits or seeking payments on pending tax claims from Donald Trump, his family, and their businesses.

Judge Williams sanctions

▪U.S. District Judge Kathleen Williams referred attorney Alejandro Brito to the Florida Bar and barred attorney Daniel Epstein from appearing in the southern Florida federal court for one year.
▪U.S. District Judge Kathleen Williams ordered sanctions against acting Attorney General Todd Blanche and Associate Attorney General Stanley Woodward.

Blanche attorney general confirmation

▪Republican Senators John Cornyn and Thom Tillis have held up the Senate confirmation of acting Attorney General Todd Blanche over the IRS settlement terms.
▪Senators John Cornyn and Thom Tillis demand written commitments permanently shutting down the anti-weaponization fund and narrowing the audit protection deal before confirming Todd Blanche.

January 6 rioter payments

▪Donald Trump defended the proposed fund on Truth Social, stating that victims of government abuse should be paid back for what they endured.
▪Acting Attorney General Todd Blanche did not rule out in Senate testimony that the proposed fund could pay individuals charged with assaulting police officers during the January 6, 2021, Capitol riot.