An article summarized by Axios:

President Trump reached a settlement Monday in his $10 billion lawsuit against the IRS over the leak of his confidential tax returns during his first term. Under the agreement, Trump and the Trump Organization will receive a formal apology but no direct financial payment. The lawsuit stemmed from a former IRS contractor leaking Trump’s tax records to media outlets including The New York Times and ProPublica, with the contractor later pleading guilty and serving prison time.

As part of the settlement, the government will establish a $1.776 billion taxpayer-funded compensation program for individuals who claim they were victims of government “weaponization” under the Biden administration. The unprecedented fund could potentially compensate groups including Jan. 6 defendants and others who argue they were unfairly targeted by federal agencies or politically motivated investigations.

The case was officially dismissed “with prejudice,” meaning it cannot be refiled in the future. The settlement drew attention because it involved a sitting president pursuing legal action against agencies now under his own administration’s control. Critics and supporters alike are expected to debate the broader implications of creating a federally backed compensation system tied to claims of political targeting by the government.

For the article: https://www.axios.com/2026/05/18/trump-irs-lawsuit-dropped