How Trump settled a lawsuit with himself and avoided a $100 million audit
Donald Trump may have landed the biggest deal of his life.
In a controversial settlement which avoided a politically unpalatable transfer of Treasury funds into Trump's hands, the president and his family gained immunity from tax audits that could have cost $100 million, according to the New York Times.
The release from tax liability, authored by acting attorney Todd Blanche, who has served as Trump's personal attorney, came a day after the Department of Justice agreed to create a $1.8 billion fund which would benefit Trump's allies.
After political blowback, including from Republicans, Blanche said that the fund won't move forward, but continues to litigate lawsuits questioning its legality. Today, a judge in one of the lawsuits extended an indefinite block on the fund. But Trump's tax deal stood. At least it did until a July 13 order voided the "purported 'settlement agreement,'" calling it an attempt to "to confer immunity to people and entities affiliated with the President and to earmark billions of dollars from American taxpayers to redress grievances not defined in the law."
Here's how he pulled it off:
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How did we get here? Here's a timeline:
1929: U.S. Supreme Court says department heads are the "President's alter ego" in Myers v. U.S.
Jan. 29, 2026: Trump sues the IRS and Dept. of Treasury for $10 billion over leak of his tax returns by a former contractor who worked for Booz Allen.
Jan. 31: Asked by a reporter what it is like to be on both sides of a lawsuit, Trump replies: " ... I'm supposed to work out a settlement with myself..."
April 24: The judge for the case questions whether the case is legitimate, given that Trump was on both sides of it, and orders the parties to file briefs taking a position on the matter by May 20.
May 18: Dept. of Justice reveals a settlement with Trump $1.8 billion fund for "victims of lawfare and weaponization".
May 19: Acting Attorney General Todd Blanche, - who was Trump's personal lawyer - releases Trump and family from tax liability, that could have cost him $100 million if he lost the case, according to The New York Times and ProPublica.
May 20: A lawsuit is filed by two police officers who defended the U.S. Capitol on Jan. 6, calling the fund "the most brazen act of presidential corruption this century."
May 22: Another suit is filed in Virginia, claiming the fund was created following a collusive agreement between the Trump and his own administration, and without congressional authorization.
May 27: Thirty-five former federal judges ask the Miami federal judge who closed Trump's case against the IRS to reopen it in a court filing.
June 3: After backlash from Republican senators, AG Blanche tells reporters that the fund will not move forward, but Trump's tax deal remains in place.
June 12: A judge in the Virginia case blocked the fund indefinitely, giving Blanche and Treasury Secretary Scott Bessent a week to sign on a sworn statement stating the fund would not go forward or the lawsuit would continue.
This is developing story which may be updated.
This article originally appeared on USA TODAY: How Trump settled a lawsuit with himself and avoided a $100 million audit
Reporting by Carlie Procell, Ramon Padilla, Aysha Bagchi, Bart Jansen and Josh Meyer, USA TODAY / USA TODAY
USA TODAY Network via Reuters Connect
Copyright Reuters or USA Today Network via Reuters Connect
This story was originally published July 13, 2026 at 1:36 PM.