BREAK IT DOWN!
This has been another eventful week for government in the United States…and it’s only Wednesday. Another GOP Congressman targeted by DJ Trump lost his re-election bid. Down goes Thomas Massie. The Kentucky solon, who lost last night, joined the five Indiana Senators who lost a couple of weeks ago, after also having been targeted by Trump.
As an aside, Senator John Cornyn of Texas saw Trump throw his endorsement to his opponent, Texas Attorney General Ken Paxton. Most observers now cede next week’s runoff to Paxton, aided by Trump’s backing. While Paxton may win, his candidacy is not without concerns. He has previously overcome several controversies, including, impeachment, felony securities fraud allegations, which he ultimately settled, election integrity (attempt to overturn the 2020 Election) issues, and a marital/divorce scandal. These issues are not expected to derail his GOP runoff chances.
Believe it or not, actual election matters are not the top line. Earlier this week, it was reported that Trump was dropping his $10 billion, that’s billion with a b, suit against his own Department of Justice. Instead of $10B, a $1.776 billion dollar settlement was reached, which will provide payouts to Trump allies, and others who have been impacted by “so-called” Biden law fare.
Todd Blanche, Trump’s former personal criminal attorney, and current Acting Attorney General negotiated the settlement, and will select a 5-person panel to oversee the “1776 Fund.” While it remains unclear who will get money from what some are referring to as a self-dealing slush fund, Neither Trump, JD Vance, nor Blanche have ruled out the prospect that individuals who committed violent acts against law enforcement at the Capitol on January 6, 2021, and who on January 20, 2025 were granted a blanket pardon for their actions by Trump on the first day of his second term, will receive money from the settlement.
That sounded like the tip line. But then this happened. The Justice Department added an addendum to its settlement with President Donald Trump. It immediately ignited controversy because it reportedly says the government is “forever barred and precluded” from pursuing certain tax examinations or claims against Donald Trump, his family, and his companies, involving returns filed before the settlement’s effective date.
According to recent reporting by ABC News, CBS News, and NBC News, the addendum expands a broader agreement resolving Trump’s lawsuit against the IRS over the leak of his confidential tax information. That reporting suggests the deal reaches far beyond an ordinary settlement term because it appears to shut down not just currently pending matters, but also any claims that could have been raised concerning older Trump tax returns. Even with the Justice Department later saying the addendum applies only to existing audits and not future ones, the language has landed like a political and legal earthquake, especially because it concerns the sitting president and a tax agency meant to apply the law uniformly.
The backstory matters. Trump sued after an IRS contractor, Charles Littlejohn, admitted leaking tax return information belonging to Trump and other wealthy Americans to the press. It should be noted that Littlejohn is current serving a jail sentence related to the matter.
That breach created a serious privacy and accountability issue for the government. But critics argue that redressing an unlawful leak is not the same thing as granting a president sweeping protection from tax scrutiny. The question is not whether Trump had grounds to complain about the disclosure of his returns; plainly he did. The question is whether a settlement negotiated by a Justice Department led by his own administration can lawfully or appropriately insulate him, his family, and associated businesses from tax enforcement on prior filings. That is where the matter becomes far more significant than a simple damages dispute.
This is the nexus where both the broader settlement, and especially the addendum appears to earn the label self-dealing. The benefits do not inure just to Trump, but also to his family members and businesses. As one analyst noted, he sued himself, settled with himself, and is now paying himself. Trump supporters are quick to counter; Trump is not getting any of the money.
Seriously? Stop playing! The addendum itself is undoubtedly worth millions. Think of all the past returns that will now not be reviewed. Don’t be ridiculous. Trump’s taxes have long drawn attention and at least one long-running audit could have carried a very substantial financial consequence. In that light, the addendum is not a symbolic gesture. It could amount to a durable shield against significant liability, which is why opponents see it as a direct challenge to principles of equal treatment under the law. “It’s A Great Deal…If You Can Get It!”
I’m done; holla back!
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This post was augmented by the use of AI.
BREAK IT DOWN! 