When Donald Trump sued the Internal Revenue Service for $10 billion, it was a breathtaking display of arrogance and greed. An independent contractor leaked Trump’s tax returns in 2019, along with the returns of other very wealthy people.
A few things to know about this event: the individual who leaked tax returns was convicted and sent to prison. The leaking of tax returns occurred while Trump was President. Trump was expected to release his tax returns as other presidents had done since —, but he never did.
Federal Judge Kathleen Williams made clear that she found the lawsuit fishy, since it was not an adversarial proceeding. As she pointed out, when Trump sued the IRS, he was essentially suing himself since he was in charge of the department he was suing. She was coming close to the conclusion that the lawsuit had no adversary and was possibly a fraud on the court.
Before she issued a ruling, Blanche and Trump announced that they had reached a settlement: Trump would drop his suit in exchange for the Justice Departnent agreeing to set up a fund of $1.776 billion to pay people who had been unfairly targeted and harmed by the federal government. They also agreed that the IRS would not audit Trump or his family (it was never clear whether the agreement covered audits up until 2026 or audits past and present.) Since Trump owed the IRS about $100 million, this piece was very important to him.
Judge Williams issued a ruling and declared the entire agreement void. She said that Blanche and Trump could not even call what they had done a “settlement,” because the terms they agreed to had no legal force.
Senators from both parties were outraged by the slush fund, which they believed would give payouts to the January 6 insurrectionists, as well as Trump friends such as Rudy Giuliani and others who helped his efforts to overturn the 2020 election. Acting Attorney General Blanche assured them that the slush fund was dead but he refused to put it in writing.
When Trump nominated Blanche to be the Attorney General of the United States, two Republican senators said they would block him unless he produced a letter revoking his agreement with Trump.
And so with that background, read what Heather Cox Richardson said about the events of recent days:
Friday’s dismissal of the Department of Justice case against David Hearn for vandalism of the Lincoln Memorial Reflecting Pool came days after Hearn’s lawyers asked for transcripts of the grand jury proceedings that led to the indictment. The lawyers noted that the government’s only witness testified that the pool was already damaged before Hearn went near it, and that the witness could not quantify the cost of any damage Hearn might have done over and above the cost of repairing the existing damage. The lawyers told the court there were “irregularities in the government’s presentation of the evidence to the grand jury” that “call into question whether the grand jury was misled.”
The Department of Justice has been caught repeatedly misleading grand juries or committing misconduct in getting indictments. Hearn’s lawyers were suggesting that the Department of Justice engaged in the same misconduct in the indictment of David Hearn for damaging the bottom of the reflecting pool.
In their filing, they noted that a judge and former federal prosecutor in the District of Columbia had recently stated that “[g]enerations of presidential administrations and public officials” have reinforced the idea, called the “presumption of regularity,” that public officials do their jobs properly, operate in good faith, and follow correct procedures. But, the judge noted, “In just six months, the President of the United States may have forfeited the right to such a presumption.”
On July 28, J. David McSwane, Pratheek Rebala, and Carla Astudillo of ProPublica reported that judges across the country are calling out lawyers for the Department of Justice, questioning whether they can be trusted to tell the truth and whether they are operating according to centuries-old norms. Judges have called behavior by Department of Justice lawyers “unlawful,” “unethical,” “unseemly,” and otherwise dishonest.
The degradation of the Department of Justice, which is charged with defending the rule of law for the American people, into an instrument of Trump’s political wrath has been illustrated in the fight over the confirmation of Acting Attorney General Todd Blanche to attorney general.
Before going to the Department of Justice, Blanche was Trump’s personal attorney. He led Trump’s criminal defense team in the case of falsifying records to cover up hush-money payments to adult film actress Stormy Daniels, as well as his defense against the two cases brought by special counsel Jack Smith: the one indicting him for trying to overturn the results of the 2020 presidential election and the one indicting him for retaining classified documents after leaving office.
Since he took over for former attorney general Pam Bondi, Blanche has openly flouted the law in order to do Trump’s bidding. He secured indictments against people Trump perceives to be enemies, including former FBI director James Comey for posting on Instagram a picture of seashells arranged to form the number “8647.”
On July 29, Devlin Barrett and Alan Feuer of the New York Times reported that the Secret Service agents who interviewed Comey in May 2025 were told to send a summary of that interview as quickly as possible to Trump on Air Force One. Trump’s close involvement in the case, the authors wrote, “is one of the most glaring examples to date of the degree to which Mr. Trump now directs federal law enforcement actions.”
On July 28, Comey’s lawyers filed motions to throw out on the grounds of vindictive and selective prosecution the federal charges Blanche brought against him. They noted that Trump had repeatedly made it clear he wanted Comey indicted, even going so far as to put his former special assistant Lindsey Halligan into office as the U.S. attorney for the Eastern District of Virginia, where she indicted Comey just four days later. (That appointment was later found to be invalid.) The filings from Comey’s lawyers appear to show that FBI officers engaged in warrantless surveillance of Comey.
Like the lawyers in the Hearn case, Comey’s lawyers suggested that “irregularities in the grand jury process influenced the grand jury to return an indictment.” Like Hearn’s lawyers, they asked the court to “disclose the transcripts and audio recordings of all proceedings before the grand jury in this case” or to review them himself to make sure they followed the law. In a previous case against Comey, they note, Magistrate Judge William Fitzpatrick found that the government’s actions raised “genuine issues of misconduct” that were “inextricably linked to the government’s grand jury presentation.”
Blanche’s indictment of Comey to please Trump colors another of his actions: he backed the deal Trump made with the Department of Justice to establish a $1.776 billion slush fund to pay off those convicted of committing crimes surrounding Trump’s attempt to overturn the results of the 2020 election, including storming the U.S. Capitol on January 6, 2021.
Blanche put his name to the second half of that deal that seems to be being eclipsed by the slush fund but is clearly Trump’s main interest: an agreement between Trump and the Department of Justice promising to drop any pending claims against Trump, his oldest sons, or the Trump Organization for past illegalities in tax returns, and promising not to conduct audits of Trump’s tax returns.
That slush fund/nonprosecution deal has been a sticking point for Blanche’s Senate confirmation to attorney general, as two Republican senators—John Cornyn of Texas and Thom Tillis of North Carolina—want him to put in writing that the deal is as dead as he claimed it is in his confirmation hearing before they agree to support his nomination. But he has refused to do so. On Thursday, Trump suggested he was willing to withdraw Blanche’s nomination until Cornyn and Tillis are out of office, leaving him as acting attorney general.
Then, at 7:03 Friday morning, Trump threw a monkey wrench into this fight by posting that in fact, he emphatically supports the slush fund. He appears to reject the idea that it is dead, and seems to be counting on Todd Blanche to implement it, exactly as critics have said.
Trump seems to have been thwarted from getting his way quietly by putting Blanche in as attorney general without any promise to kill the slush fund and its accompanying promise not to prosecute Trump or his associates for crimes associated with their tax filings. And so, on Friday, Trump filed notice that he and the rest of the parties to the “agreement” will appeal the July 13 ruling by U.S. District Judge Kathleen Williams. She said that the suit that led to the $1.776 billion slush fund and the accompanying nonprosecution promise was filed to “manipulate the judicial process.” Williams said the Justice Department could not claim the deal it made with the Trumps was a judicial agreement.
At 7:32 Saturday morning, Trump posted: “If Senators Cornyn and Tillis, both upset because I wouldn’t Endorse them (they lost, and quit, respectively!), aren’t going to approve Todd Blanche, one of the most respected professionals, according to everybody, in the Country, to be the United States Attorney General, then I will keep Todd as Acting A.G., and push hard to get the Anti-Weaponization Bill, which takes care of those who have been so badly treated by the Crooked Joe Biden (and Obuma!) Administration (I get nothing, although I was treated horribly!), PASSED. Todd Blanche was a voice of reason! It will immediately be back on the table, and I will get it done. Thank you for your attention to this matter! President DJT”
After Richardson had posted her commentary, near midnight last night, CNN reported that Todd Blanche released a written statement declaring that he was rescinding the slush fund. This was what Senators Cornyn and Tillis had demanded, and it appeared that they are likely to vote to confirm him tomorrow.
The document released Sunday also limits the addendum to that agreement that offers the president and members of his family immunity from tax investigations — a sticking point for Cornyn. The senator wanted Blanche to explicitly acknowledge that it applies only to past tax investigations against the president and those listed in the IRS lawsuit.
The Sunday order says the measure “applies by its terms only retroactively” and that it applies only to “the named parties in the lawsuit” referenced in the agreement.
Bottom line: Blanche abandons the slush fund but reaffirms that the IRS will not audit Trump or his family or the Trump Organization for any tax cheating in the past. As Heather Cox Richardson wrote, this was Trump’s main interest, not the slush fund.
So if Cornyn and Tillis are satisfied, Trump gets what he wanted: freedom from having his tax returns audited retroactively. This saves him at least $100 million, possibly much more.
And if Blanche is confirmed, Trump gets what he’s always wanted; his Roy Cohn in charge of the Department of Justice, pursuing his enemies and defending Trump’s actions.



