Kim calls reported settlement 'outrageous weaponization of government' as Trump moves to dismiss $10B tax return leak lawsuit.

WASHINGTON, D.C. — New Jersey Senator Andy Kim (D) is taking aim at the Trump administration over a reported deal to resolve a massive IRS lawsuit, calling it an "outrageous weaponization of government" that would funnel nearly $1.8 billion to the president's allies.

In a sharply worded Facebook post published Monday, Kim attacked what he described as a "$1.8 BILLION slush fund for [Trump's] buddies and loyalists in exchange for dropping his lawsuit against the IRS."

"Trump is the most corrupt President of our time," Kim wrote. "What an outrageous weaponization of government for Trump's and his supporters' benefit."

The post, shared with Kim's verified Facebook following, has drawn about 353 reactions and 335 comments at time of writing.

Kim's statement references an Associated Press report that President Trump has moved to dismiss his own $10 billion lawsuit against the IRS. The lawsuit, filed in January 2026, centered on the leak of Trump's tax returns to the New York Times and House Democrats. The disclosure revealed years of financial data Trump had long fought to keep private.

According to AP, the administration is now seeking to drop the suit amid “reports of a resolution,” not a finalized agreement. The news agency reported that a $1.7 billion fund is being discussed to compensate individuals who feel persecuted by the case, regardless of partisan affiliation, according to Acting U.S. Attorney General Todd Blanche. Specific details, eligibility criteria, and official confirmation from the IRS or Treasury Department remain unavailable.

Legal experts note that any federal compensation fund of this scale would typically require congressional appropriation and oversight, raising questions about whether the administration could unilaterally establish such a program.

For New Jersey voters, Kim's statement offers a window into how the state's junior Senator is using his Washington platform to challenge the Trump administration on matters of federal accountability and government ethics.

Kim took office in January 2025 after winning New Jersey's 2024 Senate race, defeating Republican Curtis Bashaw to become the first Korean-American elected to the U.S. Senate. He has emerged as a vocal critic of the administration, frequently using social media to challenge executive actions he views as misconduct or overreach.

His statement on Monday aligns with a broader pattern of New Jersey Democrats pushing back against federal policies. Governor Mikie Sherrill, inaugurated in January 2026, has challenged the administration on immigration enforcement and environmental regulation. Attorney General Jennifer Davenport is currently defending New Jersey's ICE mask-ban law against a Department of Justice lawsuit.

Unlike Sherrill and Davenport, who operate within state government, Kim's Senate role puts him directly in the path of federal executive action. His willingness to label the reported IRS deal as "corrupt" signals an aggressive posture as the administration navigates multiple legal and political controversies.

New Jersey's senior Senator, Cory Booker, has not publicly commented on the reported IRS resolution as of May 19.

The underlying case behind the lawsuit dates to the disclosure of Trump's tax returns, which were obtained by the New York Times and published in 2020. They revealed years of financial losses, minimal federal tax payments, and extensive debt. House Democrats later obtained additional returns through congressional oversight authority, prompting legal battles over the scope of legislative investigative power. Charles Littlejohn, the IRS contractor who leaked the documents, was sentenced to five years in prison in 2024.

Trump's $10 billion lawsuit against the IRS, filed in January of this year, alleged improper disclosure of his tax information, seeking damages for what he claimed was an unlawful leak of confidential data. The case has moved slowly through federal courts, with the administration's recent motion to dismiss marking a potential end to the litigation. But the reported compensation fund adds a new layer of controversy.

U.S. District Judge Kathleen Williams closed the case on May 18, in a three-page order that scuttled a scheduled hearing, but noted that federal agencies represented by the Justice Department "neither submitted any settlement documents nor filed any documents ensuring that settlement was appropriate" while an outstanding constitutional question remained over whether Trump could sue his own government.

Several key questions surround the reported settlement. As mentioned above, the exact structure and legality of the proposed $1.8 billion fund remain unclear. Reports have not yet revealed who qualifies as a "persecuted" and how compensation would be determined, nor whether Congress would have oversight or approval authority.

As of publication, neither the White House, IRS, nor Treasury Department has publicly confirmed the terms of any resolution.

Senator Kim's statement transforms a national legal development into a New Jersey political moment, reminding constituents of his role as a federal representative while generating partisan response around a high-dollar, high-stakes Washington controversy.

Whether the reported IRS deal materializes as described, and whether Kim's "slush fund" characterization holds up under scrutiny, remains to be seen. But for now, New Jersey's junior Senator has made his opposition clear.

Sources

• Senator Andy Kim, Facebook post (May 18, 2026)

• Associated Press, "Justice Department announces nearly 1.8B fund to compensate Trump allies in a deal to drop IRS suit" (May 19, 2026)

• Forbes, "Trump Could Get 1.7 Billion Payday In IRS Case Over Leaked Tax Returns" (May 15, 2026)

• Politico, "DOJ rolls out nearly 1.8B 'anti-weaponization fund' as part of Trump's IRS settlement" (May 19, 2026)

• ABC News, "Trump poised to drop IRS suit, launch 1.7B 'weaponization' fund for allies" (May 15, 2026)

• PBS NewsHour, "5 key findings from NY Times report on Trump's tax returns" (September 27, 2020)

• NPR, "Trump Dismisses 'New York Times' Report That He Paid Little In Federal Income Taxes" (September 27, 2020)

• The New York Times, "Trump's Taxes Show Chronic Losses and Years of Income..." (September 27, 2020)

• The New York Times, "Andy Kim Wins in New Jersey to Become the First Korean..." (November 5, 2024)

• New Jersey Monitor, "New Jersey Rep. Andy Kim makes history as first Korean American elected to Senate" (November 5, 2024)

• WHYY, "Andy Kim defeats Curtis Bashaw in U.S. Senate race" (November 6, 2024)

• Politico, "Mikie Sherrill becomes New Jersey governor with eye on affordability and Trump" (January 20, 2026)

• New Jersey Office of the Attorney General, "Meet Attorney General Davenport" (April 29, 2026)

• U.S. Department of Justice, Complaint in United States v. State of New Jersey (April 29, 2026)

• CBS News, "DOJ sues New Jersey, Gov. Mikie Sherrill over ICE agent mask ban" (April 29, 2026)

• Courthouse News, "Trump administration sues New Jersey over state law barring ICE from wearing masks" (April 29, 2026)

• Ballotpedia, "United States Senate election in New Jersey, 2024" (accessed May 19, 2026)