Plaintiffs filed an amended lawsuit on Thursday seeking to block an Internal Revenue Service (IRS) immunity agreement that shields President Donald Trump, his family, and their businesses from tax investigations. The filing comes after Acting Attorney General Todd Blanche moved to rescind a related "Anti-Weaponization Fund" while maintaining the tax immunity provisions. The legal challenge, brought by a former federal prosecutor and others alleging government retaliation, argues the deal violates federal laws prohibiting presidential interference in tax audits.
The dispute stems from a settlement reached earlier this year after President Trump sued the IRS for $10 billion in January. Under the terms of that agreement, the Department of Justice (DOJ) agreed to establish a $1.8 billion fund for alleged victims of government weaponization. In exchange, the president and his family received immunity from tax investigations, a move the lawsuit claims could save the president over $100 million in potential rulings.
While the "Anti-Weaponization Fund" was indefinitely blocked by Virginia District Judge Leonie Brinkema and subsequently rescinded by Blanche during his Senate confirmation process, the immunity memo remains active. The one-page document, signed by Blanche, prevents the IRS from auditing the president's returns or recovering underpaid taxes from ongoing investigations. Plaintiffs argue the president has earned $2.2 billion since returning to office, making the immunity particularly significant.
The scale of the financial impact is documented at more than $100 million in potential tax-related costs that the president could avoid through this immunity. For the public, the lawsuit centers on whether the executive branch can use settlement agreements to bypass federal laws that prevent political officials from halting specific tax audits. The plaintiffs, including New Haven Mayor Justin Elicker, argue that the deal undermines the principle that every American is subject to the same tax integrity reviews.
What happens next depends on the federal court's response to the amended complaint. While Todd Blanche stated the $1.8 billion fund is "rescinded," the Senate Judiciary Committee advanced his nomination for Attorney General on Tuesday along party lines. A full Senate vote is expected to follow. If the judge does not grant a permanent injunction, plaintiffs argue the administration could technically resurrect the $1.8 billion fund because the original agreement creating it has not been formally dismantled. No specific date for the next court hearing was reported.