Trump's big scam. He robbed his own country of billions. “Brazen deception”
January 29, 2026 was a frosty day in the USA. The news warned of severe snowstorms, anti-ICE street protests were intensifying in Minneapolis, and budget paralysis gripped members of Congress in Washington.
Perhaps that is why almost no one noticed that the US president then carried out a legal maneuver that, from today's perspective, constitutes an unprecedented attack on the constitution.
Donald Trump demanded $10 billion. (PLN 36.5 billion) in compensation from the agencies that report to it, more precisely from the federal tax office (Internal Revenue Service, IRS), to which every resident of the USA must submit a tax return.
What was the accusation from Trump's lawyers? Well, an IRS employee allegedly handed over his tax returns to The New York Times magazine in 2020. Four months later, the lawsuit was dropped, but there was actually something else behind the move. Senator Adam Schiff (Democrat from California) calls it a “brazen fraud.” Renowned political scientist Heather Cox Richardson talks about “obvious corruption.”
In exchange for dropping the lawsuit, Trump received something much more valuable — immunity from tax audits. And not only for themselves, but also for their sons Eric and Donald Jr., for their companies and – according to the settlement document – everyone related to them. Additionally, under the agreement, an Anti-Weaponization Fund worth USD 1.776 billion was created. (PLN 6.5 billion), from which Trump's political allies are to receive compensation – from taxpayers' money.
– I've never seen anything like this — says political strategist Steve Rosenthal of the nonpartisan Tax Policy Center in an interview with POLITICO. Tax expert Chye-Ching Huang from the Center on Budget and Policy Priorities calls this maneuver unprecedented. “It undermines the foundations of our tax system,” he says.
A daring scam
The legal structure of this maneuver is bizarre. Trump sued the body whose heads he appoints. The IRS and the Treasury Department are part of the executive branch, which is controlled by the president. Justice Department lawyers who were supposed to defend the IRS are working for him. And under a presidential decree from February, they are not allowed to represent a legal position that “is contrary to the opinion of the president.”
Trump himself made no secret of this move. Two days after filing the lawsuit, he put it bluntly. When a reporter asked him on the plane how this would work, Trump replied briefly: “I have to negotiate a settlement with myself.”
Shortly thereafter, that's exactly what happened.
Judge Kathleen Williams of the U.S. District Court in Florida recognized this problem early on. In April, she expressed serious doubts about whether there had even been a constitutional “dispute” — a basic requirement for judicial proceedings under Article III of the U.S. Constitution. In a statement on May 14, she argued: “the constitutional requirement of adversity does not apply if one party actually controls the other.”
The decisive hearing in the trial was scheduled for May 27, but never took place. On May 18 — nine days earlier — Trump's lawyers dropped the lawsuit. Just before the judge was about to make her decision.
In other words – through his loyal Attorney General Todd Blanche, the president “settled” the case against his own agencieswithout the possibility of intervention by Parliament or an independent court. No wonder the opposition is furious now. Democratic senator and chairman of the Finance Committee Ron Wyden calls the agreement “an attack on the rule of law.” “Democrats will fight every element of it,” he announces.
The question is – how? The settlement document is signed. The fund will be established. Resumption of the proceedings seems virtually impossible. Even conservative constitutional scholar Jonathan Turley of George Washington University is concerned: “This sets a dangerous precedent,” he writes. “If the president can sue his own agencies and then dictate the terms of the settlement, what's to stop him from rejecting any unwanted scrutiny?”
Trump family tax audits banned
Another interesting element of the case is the newly created pool of USD 1.8 billion. (PLN 6.6 billion). The settlement document clarifies who is entitled to “compensation” from these funds: people who have allegedly been victims of “legal warfare” and “weaponizing the law.” By this, Trump means “the use of state power by Democratic politicians” against people “for political or ideological reasons.”
The potential group of people entitled to compensation from this pool is huge. Todd Blanche explained to the Senate that “anyone who feels persecuted by the justice system for political reasons” can apply for financial compensation. Who decides on the allocation of money? The five-member commission was appointed by Trump loyalist Blanche and could be dismissed by the president at any time. What are the criteria? The Commission sets them itself and does not have to disclose them. Also, the names of the people receiving the funds may remain secret.
Two police officers who suffered serious injuries while pacifying the storm on the Capitol on January 6, 2021, have filed a lawsuit against the fund. “It is an insult that taxpayers' money should go to people who almost killed us,” writes the Washington Post, quoting officer Daniel Hodges.
The day after announcing the creation of the fund, Blanche presented a second document, which also has something interesting in it. Under it, the IRS is barred for life from auditing tax returns filed by Trump and his family before May 19, 2026.
According to research by The New York Times and ProPublica, an IRS audit could show that Trump owes more than $100 million. (PLN 365 million). That's because he reported the same losses twice for his Chicago skyscraper – in 2008 and then again after 2010, including $72.9 million. (PLN 266 million) refund, interest and penalties, the bill could exceed USD 100 million. (PLN 365 million). However, the audit was discontinued.
Silent opposition from Republicans
The interests of Trump's sons can no longer be the subject of an investigation – for example, in 2025, the United Arab Emirates state fund acquired most of the shares in Trump's company World Liberty Financial.
Eric and Donald Trump Jr. they also invested in Powerus Corporation, a drone manufacturer – just as their father was pouring billions into combat drones in the war with Iran. The sons therefore gain twice: they will no longer be subject to tax audits, while at the same time profiting from their father's war policy. According to the White House, Eric Trump and Donald Trump Jr. they manage their father's fortune, whose value is estimated at a gigantic amount of USD 6.5 billion. (PLN 23.7 billion).
Nina Olson, a former national taxpayer advocate — the IRS's top consumer protection official — calls the agreement “unconstitutional” and warns: Section 7217 makes it a crime for the president to directly or indirectly order an IRS official to terminate a tax audit. “That's exactly what happened in this case,” he says.
Opposition to the president is also growing among Republicans — although it tends to come from backbench lawmakers. 25 Republican senators spoke against the fund and postponed the vote on the $72 billion package of funds. (PLN 263 billion). They said they did not want to vote on Trump's “dark money”.
According to media reports, Blanche spent two hours meeting with senators – but was unable to credibly explain how the fund would function or what security measures it had in place. Senator Mitt Romney, the most prominent representative of the rebels, calls the agreement an “abuse of executive power.” “If we let this happen, there will be no going back,” he warns.
Democratic leader Chuck Schumer announced that he would block the fund through legal means. However, whether he succeeds also depends on the results of the November by-elections. Until then, Trump has a largely free hand in what Democratic Rep. Jamie Raskin calls a “gross constitutional violation” and “fraud.”
According to Raskin, Trump managed to do what no president before him had dared to do: he sued his own agencies, had lawyers “settle” the case, and created a fund for allies worth billions — while giving his family tax immunity.
