Judge requires Trump and his family to answer for millionaire fund for his allies
The court order questions an agreement linked to the IRS that led to a fund of $1.8 billion
A federal judge in Miami ordered lawyers for President Donald Trump and his family to respond to accusations of fraud related to an agreement reached with the Internal Revenue Service (IRS), which gave life to a million-dollar fund for his allies, which was suspended today in another court decision.
Magistrate Kathleen Williams gave until June 12 for the parties to explain why the agreement constitutes a legitimate way to resolve the lawsuit and not a misuse of the judicial system.
Williams noted that filing a “frivolous” lawsuit with the sole purpose of forcing a settlement could be considered an “improper purpose,” referring to the lawsuit filed by the Trump family in early 2026 over the leak of their tax returns from past years to some local media.
The order was issued after a group of retired federal judges asked to reopen the case, alleging that the parties hid from the court the actual terms of the agreement reached between the Trump family and the Government.
Previously, a federal judge in Virginia, Leonie Brinkema, temporarily suspended the fund of almost $1.8 billion that the United States Government announced on May 19 to compensate allies of President Donald Trump who were, she claims, subject to persecution by the Government of Joe Biden.
The order, consulted by EFE, establishes that the Administration cannot take any measure “relative to the creation or operation of the Fund against Instrumentalization”, which includes the “transfer of money”, “the consideration of any claim presented” to it and the “disbursement of any funds.”
Brinkema considers that this blockade aims to “ensure that funds are not disbursed irreversibly while the motion of the plaintiffs is pending,” who have denounced the creation of this public financing.
Democratic congressmen and a growing number of Republicans are trying to impose limits so that public money does not end up benefiting Trump's political allies or donors.
The Department of Justice detailed that, as part of that agreement, the president, his sons Donald Trump Jr. and Eric Trump, and his company, the Trump Organization, will receive “a formal apology, but not financial compensation or compensation of any kind.”
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