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Judge Orders Reopening of Trump’s IRS Lawsuit Over Fraud and Collusion

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03.06.2026

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After widespread bipartisan outcry, the Justice Department says it is permanently abandoning plans for a $1.776 billion “anti-weaponization” fund. Widely branded as a “slush fund,” it was expected to reward President Donald Trump’s supporters, including those who attacked the Capitol on January 6, 2021. The fund was announced in May as part of a settlement in Trump’s personal lawsuit against the IRS over the leak of his tax data. That case was recently reopened, after dozens of former federal judges filed a motion alleging that Trump’s actions were “collusive.” As Nancy Gertner, one of the judges who joined the motion, explains, “What happened in this case was, essentially, Trump was suing himself. There was no question that Trump was on both sides of the ‘v.‘” Gertner and her fellow judges are represented by attorney Matt Platkin, who says, “It is illegal for the president to ask for any IRS audit to be opened or closed. That is a federal crime.”

This is a rush transcript. Copy may not be in its final form.

AMY GOODMAN: In a rare reversal for the Trump administration, the Acting Attorney General Todd Blanche told lawmakers Tuesday the Department of Justice would not be moving forward with the $1.8 billion so-called anti-weaponization fund, even after the temporary pause mandated by the court. Blanche had announced the fund just weeks ago as part of a settlement deal with President Trump and his family over their private lawsuit with the IRS over the leaking of Trump’s tax returns years ago. The fund has been widely criticized as a slush fund to provide payouts to January 6th insurrectionists and other Trump allies, even drawing rebuke from some Senate Republicans and dividing the caucus.

This is Todd Blanche, formerly President Trump’s personal attorney, responding to questioning from New York Congressmember Grace Meng on Tuesday.

ACTING ATTORNEY GENERAL TODD BLANCHE: We are not moving forward with the fund, period. … The reasons for the fund is something that President Trump talked about for a long time, which is the fact that there were a lot of people in this country who had their government weaponized against them. The reasons for the fund, I think, were — remain as important as they were before, but we are not moving forward with the fund. REP. GRACE MENG: Not moving forward ever? ACTING ATTORNEY GENERAL TODD BLANCHE: Correct. REP. GRACE MENG: You and Associate Attorney General Woodward signed earlier documents regarding the settlement and this fund. Would both of you now sign and release documents reversing the DOJ’s position on the fund? ACTING ATTORNEY GENERAL TODD BLANCHE: I’m not — we’re not moving forward with the fund. I’m not sure what that means to sign documents reversing. There’s nothing to reverse. We’re not moving forward with the fund. Related Story News | Politics & Elections Jeffries Says Dems Aren’t Thinking About Trump Impeachment “At This Moment” Multiple polls have demonstrated majority support from voters for impeaching President Donald Trump. By Chris Walker , Truthout June 3, 2026 Truthout

ACTING ATTORNEY GENERAL TODD BLANCHE: We are not moving forward with the fund, period. … The reasons for the fund is something that President Trump talked about for a long time, which is the fact that there were a lot of people in this country who had their government weaponized against them. The reasons for the fund, I think, were — remain as important as they were before, but we are not moving forward with the fund.

REP. GRACE MENG: Not moving forward ever?

ACTING ATTORNEY GENERAL TODD BLANCHE: Correct.

REP. GRACE MENG: You and Associate Attorney General Woodward signed earlier documents regarding the settlement and this fund. Would both of you now sign and release documents reversing the DOJ’s position on the fund?

ACTING ATTORNEY GENERAL TODD BLANCHE: I’m not — we’re not moving forward with the fund. I’m not sure what that means to sign documents reversing. There’s nothing to reverse. We’re not moving forward with the fund.

Jeffries Says Dems Aren’t Thinking About Trump Impeachment “At This Moment”

AMY GOODMAN: But the story isn’t over. On Friday, District Court Judge Kathleen Williams in Miami ordered the case reopened, after 35 former federal judges filed a motion saying the settlement may have been a fraud on the court and a product of collusion. The president’s attorneys have until June 12th to respond.

We’re joined now by one of those 35 judges, retired federal Judge Nancy Gertner. She served on the bench for 17 years in Massachusetts before retiring in 2011. She joins us from Boston. And we’re joined by former New Jersey Attorney General Matt........

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