#irs
6 entries with this tag
A Judge Voided the Sham Lawsuit Trump Filed Against His Own IRS to Launder Himself Tax Immunity and a $1.776 Billion "Anti-Weaponization" Slush Fund for His Allies — Finding "Bad Faith," No Real Case, and Referring Acting AG Todd Blanche for Discipline Two Days Before His Confirmation Hearing for the Permanent Job
On July 13, 2026, U.S. District Judge Kathleen Williams (an Obama appointee in the Southern District of Florida) issued a scathing 56-page order voiding the settlement of Trump's lawsuit against the IRS and referring his lawyers — including Acting Attorney General Todd Blanche — for disciplinary action. The backstory: in January, Trump and his two eldest sons sued the IRS for $10 billion over the leak of his tax returns. In May, "both sides" settled — except both sides were Trump. As president he controlled the IRS he was suing. The settlement created a $1.776 billion "anti-weaponization fund" to pay Trump allies (premised on January 6 and classified-documents claims) and, via a memo Blanche signed and quietly added to the DOJ announcement, granted Trump, his family, and his businesses sweeping immunity from IRS audits and other federal claims for past conduct. Nearly three dozen former federal judges from both parties — including Bush appointee J. Michael Luttig — intervened, calling it "the product of collusion" and "a fraud on the court." Williams agreed: "there was never adverseness between the Parties; there was never a case or controversy; and there was never a question as to who would prevail." She found Trump and his sons "acted in bad faith," said the tax-amnesty order "directly contravenes" the federal law barring presidents from influencing audits, and noted the $1.776 billion figure "speaks of a 'branding' effort rather than a deliberate and thoughtful calculation of damages." She was "extremely troubled" by Blanche's congressional testimony, calling one answer "at best, misleading and, at worst, disingenuous." She referred Blanche and Associate AG Stanley Woodward to the New York and D.C. bars (where disciplinary proceedings are already underway), referred private attorney Alejandro Brito to the Florida Bar, limited attorney Daniel Epstein's practice, voided the agreement so it can never be cited in any proceeding, and ordered sanctions. She closed by quoting John Adams: "Facts are stubborn things." The ruling landed two days before Blanche's Senate Judiciary confirmation hearing to become permanent attorney general.
DOGE Officially Ended on July 4 — It Promised $2 Trillion in Savings but Left an $11 Billion Hole from Paying Workers Not to Work, Federal Spending Hit a Post-COVID High, the Deficit Grew to $1.17 Trillion, Agencies Are Now Scrambling to Rehire, and Musk Says He Would "Not Do It Again"
The Department of Government Efficiency officially expired on July 4, 2026, as prescribed by the executive order that created it. It leaves behind a government that is spending more, not less — and scrambling to rehire the people it fired. Elon Musk promised $2 trillion in savings. DOGE claimed $215 billion. Independent analysis found actual savings of roughly $1.4 billion in verifiable contract cuts, while the "Fork in the Road" deferred resignation program alone cost taxpayers an estimated $11 billion — paying nearly 140,000 workers to do nothing for months before resigning. Federal spending rose to a post-COVID high: up $83.9 billion (2.3%) in the first half of FY2026, reaching $3.6 trillion — the highest level since pandemic-era outlays. The deficit grew to $1.17 trillion for the half-year, second-largest since 2021. DOGE staffer Nate Cavanaugh testified under oath that DOGE "did not reduce the federal deficit." More than 260,000 federal employees left government. Courts ordered reinstatements at 18 agencies covering 24,000+ workers. Now agencies are hiring again at a furious pace: USAJobs posted 104,000 positions in the first five months of 2026, up from 68,900 in the last five months of 2025. The IRS lost 31% of its auditors and got fast-track authority to hire 8,000. HHS laid off 10,000, RFK Jr. admitted 20% were mistakes, and is now hiring 12,000. The VA lost 40,000 employees — 88% from healthcare, including 1,000 physicians and 3,000 nurses — and veteran mental health wait times hit 134 days at one California clinic. The Pentagon shed 78,000 employees and launched "War Force" to hire them back. The National Weather Service lost 880 employees including the warning coordination meteorologist whose absence was felt during deadly Texas floods. The State Department fired hundreds of career diplomats and is now training replacements. The FAA cut probationary employees, hired them back, then launched a "supercharge" program. The NEH lost two-thirds of its staff and is now emailing former employees asking them to reapply. OPM Director Scott Kupor, asked if there is still a goal to cut the workforce: "I'm not hearing that." OMB Director Russell Vought: "We have no plans to do kind of a closing DOGE report." Musk, in a December 2025 interview: DOGE was "somewhat successful" and he would "not do it again." The Yale Budget Lab estimated IRS cuts alone will cost $8.5 billion in lost revenue in 2026 and up to $860 billion over a decade. The Center for American Progress put the ten-year revenue loss near $1 trillion. Musk's efficiency project did not make the government more efficient. It made it more expensive, more understaffed, less capable, and now more desperate to undo what it did.
Joe Rogan — Who Endorsed Trump — Compares Him to Uday Hussein Over the $1.776B Slush Fund: "This Is Crazy"
Joe Rogan, who endorsed Trump in 2024 and helped propel him to victory, read the details of the $1.776B Anti-Weaponization Fund live on his podcast and was stunned. On the permanent tax immunity: "That is so crazy." He compared it to getting acquitted of murder and then demanding immunity from all future murder prosecutions — "and then you just go straight Uday Hussein." Mitch McConnell called it "a slush fund to pay people who assault cops — utterly stupid, morally wrong."
The $1.776B Slush Fund Is Built on a Lawsuit That Was Filed Too Late — And Video Proves Trump Knew
Video evidence shows Trump's own lawyer Alina Habba was in federal court in October 2023 condemning the IRS leak on Trump's behalf — but Trump's lawsuit claims he didn't learn about it until January 2024. The two-year statute of limitations ran from when he knew, not when the IRS sent a letter. He filed in January 2026 — months too late. A leaked IRS memo confirmed the suit was time-barred. The DOJ settled it anyway, creating the $1.776B fund, two days before a judge was set to rule on whether the case could even proceed.
Trump's Former Defense Lawyer Signs Order Making Trump "FOREVER BARRED" From IRS Audits — Federal Law Says the President Can't Do That
Acting AG Todd Blanche — Trump's former personal defense attorney — signed a one-page addendum to the IRS settlement declaring the government is "FOREVER BARRED and PRECLUDED" from auditing Trump, his family, trusts, or businesses on any past tax returns. Federal law gives the IRS independent audit authority that the AG has no power to waive. A long-running audit could have cost Trump $100M+. His former lawyer just erased it. Public Citizen called it illegal. An NYU tax law expert called it "a breathtaking abuse of the tax and legal system."
Trump Drops His IRS Lawsuit, Creates $1.776B "Anti-Weaponization Fund" to Reimburse Jan. 6 Rioters With Taxpayer Money
Trump's DOJ officially established the $1.776 billion "Anti-Weaponization Fund" — taxpayer money to reimburse MAGA allies including Jan. 6 rioters. In exchange, Trump dropped his $10 billion IRS lawsuit over the Mar-a-Lago raid. The president settled a lawsuit with himself to create a slush fund he controls. A House Democrat: "the largest single act of grand larceny in American history."