On May 20, the U.S. Department of Justice issued a directive granting a “permanent” exemption from tax recovery efforts against President Donald Trump, his family members, and his businesses. The one-page document, signed by Acting Attorney General Todd Blanche, explicitly states that authorities are “permanently prohibited” from prosecuting or pursuing any related tax claims.
The move comes one day after President Trump agreed to settle a $10 billion lawsuit against the Internal Revenue Service (IRS) over the leak of his tax information to media outlets between 2018 and 2020. As part of the agreement, the Trump administration also established a $1.776 billion “Anti-Weaponization Fund” to compensate individuals who claim they are victims of politically motivated prosecutions.
Democratic Representative Adam Schiff of California denounced the directive as corrupt and “self-serving.” On social media, Schiff said: “A tax-dodging president just gave himself and his family a tax cut thanks to Todd Blanche.”
Richard Painter, a former White House ethics lawyer under President George W. Bush, argued that exempting Trump from tax obligations is unconstitutional. Painter told Al Jazeera: “If the president or his family owes money to the IRS, this violates the emoluments clause of the U.S. Constitution, which says the president cannot receive any profit or advantage from the government beyond the salary set by Congress.”
The distribution of funds from the $1.776 billion pot will be overseen by a five-member committee, four of whom will be directly appointed by Blanche—a Trump appointee and former personal attorney. During heated exchanges with lawmakers the same day, Blanche denied that Trump directed him to establish the fund or that the fund would be used in a partisan manner. “Any person in this country is eligible to apply if they believe they are a victim of weaponization,” Blanche said.
The Justice Department and the Trump Organization did not respond to requests for comment.
