Judge: Trump sought to 'manipulate the judicial process' with his IRS lawsuit and attempted $1.8B fund [View all]

Source: CNN

A federal judge Monday said a controversial lawsuit brought by President Donald Trump against the IRS sought to “manipulate the judicial process” and that he acted in bad faith in bringing it.

US District Judge Kathleen Williams is ordering sanctions for the attorneys involved in the lawsuit, which led to an attempt to create the now-defunct $1.8 billion “anti-weaponization” fund for allies of the president. It was also used to justify a Trump administration order giving Trump and his businesses amnesty for any past tax issues.

Williams’ 56-page opinion blasted the behavior of both the Justice Department — arguing that the administration’s response to the case disregarded DOJ policies and potentially the law — and of the private attorneys who brought the lawsuit on Trump’s behalf.

“The nature of the suit itself and the conduct of the Parties and counsel from its filing make plain that this was an attempt to use the Court to provide some legitimacy to an agreement 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,” the judge wrote.

She ordered that her opinion be submitted to attorney disciplinary boards in in New York and Washington, DC, that are currently reviewing pre-existing professional ethics complaints against acting Attorney General Todd Blanche and Associate Attorney General Stanley Woodward.

Read more: https://www.cnn.com/2026/07/13/politics/trump-irs-judge-ruling-settlement-sanctions