Trump Sued His Own Government for $10 Billion, and His Former Lawyer Struck a Deal
Chapter 1 — Trump Sued the Government He Runs
Chapter 2 — DOJ Tried to Cancel Trump's $83.3 Million Judgment
Chapter 3 — The Government Served His Private Financial Interests
1 · Trump Sued the Government He Runs
1.1 — A $10 Billion Demand and No Government Defense
1.2 — A Billion-Dollar Fund and Protection From Tax Claims
1.3 — A Court Blocked the Fund; DOJ Revoked Its Funding Order
1.4 — Williams Sanctioned Trump and His Lawyers
1.5 — The Tax Leak Did Not Justify This Deal
Trump, his sons and his company sued the IRS and Treasury for at least $10 billion. His Justice Department did not appear to defend the government for 109 days. His former defense lawyer, running DOJ, announced a deal a judge later found collusive.
I'm supposed to work out a settlement with myself.
DOJ promised a $1.776 billion fund for other claimants and no cash to Trump or his fellow plaintiffs. Blanche also signed a release intended to protect their tax affairs. Williams found that its audit provision contravened federal law; she left its private enforceability undecided.
I gave up a lot of money in allowing the just announced Anti-Weaponization Fund to go forward.
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A judge blocked the fund on May 29, 2026 and entered a preliminary injunction on June 12. Blanche rescinded the funding order on August 2. No one was paid, and the separate release was not rescinded; its private enforceability remains undecided.
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Williams found bad faith and collusion and imposed sanctions reaching Trump himself. She barred the parties from claiming an official settlement in this lawsuit and found monetary sanctions appropriate, with any fee award still undecided. The Eleventh Circuit refused to pause the order; the appeal remains pending.
This lawsuit was not brought to vindicate rights; it was brought to manipulate the judicial process to pursue benefits unavailable in litigation because the Parties were not adverse.
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Trump suffered a real tax leak and had a right to sue. His lawyers defended DOJ's settlement authority and the other plaintiffs' independent claims. Williams rejected the lawsuit's supposed independence and found its claims late and its damages demand unsupported.
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2 · DOJ Tried to Cancel Trump's $83.3 Million Judgment
2.1 — Carroll Would Lose Her Judgment, Not Gain a Government Payer
2.2 — The Appeals Court Rejected the Defense; DOJ Asked the Supreme Court
A civil jury had already found that Trump sexually abused E. Jean Carroll and defamed her. A later damages trial awarded her $83.3 million. Trump and DOJ asked to replace him with the United States, which would end her defamation case rather than make taxpayers pay her.
So substituting the United States in place of Trump means the failure of Carroll’s defamation lawsuit.
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DOJ argued that Trump's statements were official work and could be recertified after trial. Three appellate judges favored that position. The Second Circuit rejected substitution on statutory, waiver and equity grounds; DOJ's Supreme Court petition remained pending as of October 10, 2026.
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3 · The Government Served His Private Financial Interests
3.1 — The Charge Is Self-Dealing
Trump sought money and tax protection through agencies he controlled, and DOJ tried to extinguish his personal debt to Carroll. The fund failed and the demand went unpaid. The charge is the use of public power for his own financial protection.
Full Source Index
Primary Sources
- [1]
- [2]
- [3]U.S. Department of Justice, official biography of the Acting Attorney General (retrieved Aug. 5, 2026) · official agency publication
- [4]U.S. Department of Justice, Office of Public Affairs, "Justice Department Announces Anti-Weaponization Fund" (May 18, 2026) · official Department announcement
- [5]
- [6]Settlement Agreement, as published by the U.S. Department of Justice (May 18, 2026) · executed instrument, as published by the Department
- [7]Letter from Rep. Jamie Raskin, Ranking Member, House Committee on the Judiciary, to Acting Attorney General Todd Blanche (Apr. 6, 2026) · primary as to the demand and the writer's position; ATTRIBUTED ONLY as to the dollar figures
- [8]Press gaggle aboard Air Force One en route to Palm Beach, Florida (Jan. 31, 2026) — Roll Call Factbase transcript, 137 speaker turns · primary event, single transcript rendering (marked single-source)
- [9]Senators Sheldon Whitehouse and Richard Durbin, letter to Todd Blanche (May 26, 2026) · primary (Senate oversight letter); attributed account of testimony
- [10]Todd Blanche, August 2, 2026 rescission of May 18 funding order; accompanying DOJ statement and July 15 confirmation transcript · signed order and official DOJ publication
- [11]Representative Brian Fitzpatrick, letter to Todd Blanche (May 20, 2026) · House oversight letter
- [12]
- [13]Order, ECF 31, Floyd v. DOJ, No. 1:26-cv-01399 (E.D. Va. May 29, 2026), Brinkema, J. · federal court order, RECAP copy hosted by the Civil Rights Litigation Clearinghouse
- [14]Preliminary injunction, ECF 85, Floyd v. DOJ (E.D. Va. June 12, 2026) · federal court order, Clearinghouse copy
- [15]Docket, Floyd v. Department of Justice, No. 1:26-cv-01399 (E.D. Va.), page 3, updated October 8, 2026; last known filing October 2 · court docket mirrored by CourtListener/RECAP
- [16]Memorandum opinion, ECF 20, CREW v. DOJ, No. 1:26-cv-01789 (D.D.C. June 23, 2026), Leon, J. · court opinion published by GovInfo
- [17]
- [18]Order Closing Case, ECF 62, Trump v. Internal Revenue Service (S.D. Fla. May 18, 2026) (Williams, J.) · federal district-court order
- [19]Order denying stay, ECF 130, Trump v. IRS (S.D. Fla. September 14, 2026), Williams, J. · federal district court order, Clearinghouse copy
- [20]Order denying stay, ECF 68, Trump v. Thirty-Five Former Federal Judges, No. 26-12692 (11th Cir. September 29, 2026), Jordan, Rosenbaum and Newsom, JJ. · federal appellate order, Clearinghouse copy
- [21]Federal Judicial Center, biography of Kevin Christopher Newsom (captured October 10, 2026) · official federal judicial biography
- [22]Docket, Trump v. Internal Revenue Service, No. 1:26-cv-20609 (S.D. Fla.), page 2, updated October 5, 2026, last known filing September 15 · court docket mirrored by CourtListener/RECAP
- [23]Opinions on the petitions for panel rehearing and rehearing en banc, Carroll v. Trump, No. 24-644 (2d Cir. Apr. 29, 2026) — the court's own complete PDF, containing the denial, the statement of Chin, Sr. Cir. J., and the dissent of Menashi, Cir. J., joined by Park, Cir. J., and by Chief Judge Livingston except as to Part II.E.1 · federal appellate opinion, the court's official copy
- [24]
- [25]
- [26]Council on American-Islamic Relations v. Ballenger, No. 05-5161 (D.C. Cir. Apr. 11, 2006) (per curiam) (Sentelle, Rogers, Griffith, JJ.), 444 F.3d 659 · federal appellate opinion, official govinfo copy
- [27]Docket, Carroll v. Trump, No. 24-644 (2d Cir.), CourtListener docket 68985738 (retrieved Aug. 5, 2026) · federal appellate docket, as mirrored by CourtListener/RECAP
- [28]Supreme Court docket, United States v. Carroll, No. 26-142 (captured October 10, 2026) · official Supreme Court docket
- [29]18 U.S.C. § 202(c) (United States Code, 2024 edition) · United States Code
- [30]Trump v. United States, No. 23-939, 603 U.S. 593 (2024) (slip opinion) · Supreme Court slip opinion
- [31]
- [32]
- [33]
- [34]DOJ-published Stipulation for Compromise Settlement and Release, Flynn v. United States, No. 8:23-cv-00485 (March 2026) · settlement instrument published by DOJ