A US federal judge has struck down a legal agreement between President Donald Trump and the Justice Department that provided tax protections and $1.8 billion in funding.
US District Judge Kathleen Williams ruled on Monday that the deal, reached after Trump's $10 billion lawsuit against the Internal Revenue Service (IRS), was unlawful. Williams described it as "self-dealing."
Trump had sued the IRS during his first term, accusing it of failing to prevent the leak of his tax returns. The Justice Department then reached a settlement with Trump, agreeing to allocate $1.8 billion in funds to compensate victims of "weaponization of government" and "lawfare," and granting Trump broad tax protections.
Judge announces ruling
In her ruling, Williams stated that Trump and the Justice Department were not truly adverse parties in the case. "The nature of the case and the parties' conduct make clear that this was an attempt to use the court to legitimize granting immunity to individuals close to the president and to set aside billions of dollars from American taxpayers to remedy grievances not defined in law," the judge said.
"It is every judge's duty to ensure our courts are used only for the clear purpose established by the Constitution, and in light of the matter before this court, it must fulfill that duty," she added.
Political fallout for acting attorney general
The ruling came after the administration backed away from implementing the "Anti-Weaponization Fund" following backlash from Republican and Democratic lawmakers. The decision could be politically damaging for Acting Attorney General Todd Blanche, who faces a confirmation hearing next week.
Williams suggested that Blanche had worked on behalf of both Trump and the Justice Department, noting his "capacity to speak for both plaintiffs and defendants." The judge referred Trump's lawyer in the case, Alejandro Brito, and senior Justice Department officials who approved the deal to state bar authorities to determine whether their actions violated legal ethics rules.
