Trump's 'Anti-Weaponization Fund' could carry a big tax bill, some experts argue

Politico ^ | 05/28/2026 10:00 AM EDT | Bernie Becker

[E. Pluribus Unum]

Federal income tax experts tell POLITICO money from the DOJ's Judgment Fund, which the new $1.8 billion program is drawing on, is generally taxable.

President Donald Trump isn’t supposed to directly profit from the dismissal of his lawsuit against the IRS.

And yet, he could still owe taxes on the money going to set up a central feature of that deal — the $1.8 billion “Anti-Weaponization Fund.”

Some tax practitioners say the way that the fund, which Acting Attorney General Todd Blanche announced May 18, is structured likely makes it an income tax liability for the president, potentially costing hundreds of millions of dollars.

The argument stems from the fact the Trump administration is setting up its new “anti-weaponization” initiative through the Treasury Department’s Judgment Fund, which Congress set up decades ago to automatically pay federal court settlements.

Payments from the fund can only be made to actual litigants, and proceeds from legal settlements generally are taxable, with an exception for compensation for medical injuries or sickness.

Senior administration officials and critics alike have said this is a particularly unusual use of the Judgment Fund, with little to no precedent for how the money setting up the “anti-weaponization” pool might be taxed. The White...

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TOPICS: Government; Politics/Elections; US: South Dakota
KEYWORDS: berniebecker; johnthune; leftistsource; politico; pollutico; southdakota

[E. Pluribus Unum]

However will we fund the tens of billions of dollars of Democrat fraud (which Pollutico has studiously ignored) if we compensate the political prisoners of January 6th?

https://x.com/i/grok/share/26d909403f14486db78c4e4f44bb45a8

[ryderann]

Hopefully a lot of it will come back in hefty fines and prison time for the individuals who caused this crime against the constitution, the nation, and these people. I can’t think of anyone I’d rather pull the trapdoor on.

[Ronaldus Magnus III]

Why not use Roth IRAs and tax-free Municipal Bonds like the Kennedy Klan?

[ConservativeMind]

I want all the monies and organs from people who did this wrong, to be given to deserving people who will still be living.

[Tucsonican]

I’m not so sure I agree with the Politico “analysts” but it does make a nice “clickbait” headline and probably makes the commies feel good about themselves.

Trump, as I see it, receives absolutely nothing of value from this settlement. He also doesn’t appear to have any control over the funds. Those factors, assuming they are correct, mean that he doesn’t have any income from the fund.

As far as any recipients go, payments they receive are most likely to be considered compensatory damages rather than punitive damages and, as such, would not be taxable.

I’m not sure if Professor Zelenak has ever prepared a tax return before or represented anyone before the IRS but it sure looks to me like he would be the LAST person I’d go to for tax advice and, for his students, my heart just goes out to them for shelling out Duke tuition for this kind of junk.

[blitz128]

Now they are worried about tax bills after 37 trillion and learing center shit FO

[packrat35]

CA has already stated they intend to tax them 100%.

[Sarah Barracuda]

But paying off BLM rioters is ALL GOOD right..or how about giving reparations to blacks who were NEVER slaves

[MikelTackNailer]

It’s a court award, not a game show prize.

[italianquaker]

They are woried about taxes now lol