Justice Department grants Trump family immunity from tax audits in controversial settlement addendum
The move, posted without official announcement, coincides with the establishment of a $1.776bn Anti-Weaponization Fund, drawing sharp criticism from Democratic lawmakers and former ethics officials.
The US Department of Justice has issued a directive granting President Donald Trump, his family, and his businesses permanent immunity from pending tax audits. Signed by Acting Attorney General Todd Blanche, the one-page document formally bars federal authorities from prosecuting or pursuing tax claims against the President and his associates, effectively closing the door on any outstanding liabilities related to returns filed prior to the settlement.
The directive serves as a direct addendum to a $10bn agreement reached by the Trump administration with the Internal Revenue Service (IRS) on Monday. That settlement resolves a lawsuit brought by Trump regarding the leak of his tax information to media outlets between 2018 and 2020. The new immunity order stipulates that the waiver applies to inquiries that are currently pending or could become pending, ensuring the IRS is forever precluded from investigating tax matters connected to the President.
Despite the significance of the action, the Justice Department posted the document on its website without issuing an official press release or public announcement. The text explicitly states that authorities are barred from pursuing claims against Trump, his family members, and his business entities, covering any tax returns filed before the settlement was finalised on Monday.
Democratic lawmakers reacted swiftly to the development, with Senator Adam Schiff of California condemning the action as corruption and self-dealing. In a statement on social media, Schiff accused the administration of orchestrating a tax break for the President and his family through the actions of Blanche. The criticism extended to constitutional scholars, with Richard Painter, former chief White House ethics lawyer under President George W Bush, warning that exempting Trump from tax obligations may violate the domestic emoluments clause of the US Constitution. Painter argued that if the President or his family owe money to the IRS, accepting immunity constitutes an unconstitutional profit or advantage from the government.
The immunity directive coincides with the establishment of a $1.776bn Anti-Weaponization Fund, designed to compensate individuals who allege they have been victims of politically motivated legal actions. Critics have characterised the fund as a slush fund likely to reward Trump’s allies. The fund will be managed by a five-member commission, four of whom are appointed by Blanche, who formerly served as Trump’s personal lawyer. During Senate exchanges, Blanche denied that the President directed the fund’s creation or that it would be used in a partisan manner, asserting that any citizen eligible to apply if they believe they were a victim of weaponisation. The Justice Department and the Trump Organisation did not immediately respond to requests for comment regarding the new directive.
