A bipartisan coalition of former federal judges is urging a federal court to reopen President Donald Trump’s lawsuit against the Internal Revenue Service, arguing that the Justice Department concealed key details of a controversial settlement tied to the case.
More than 30 retired judges filed a motion Wednesday accusing the Department of Justice of misleading the court during negotiations that led to the dismissal of Trump’s lawsuit against the IRS. The group claims the administration failed to fully disclose a sweeping agreement that created a $1.776 billion “anti-weaponization” compensation fund for Americans who believe they were unfairly targeted by the federal government.
The filing raises fresh legal and political scrutiny around a settlement that critics say could blur the lines between executive power and judicial oversight.
The former judges wrote that the DOJ “deceived” U.S. District Judge Kathleen Williams by withholding information about the settlement while Trump’s legal team moved to dismiss the case. They asked the court to reopen proceedings and investigate whether the judicial process was improperly handled.
“That will allow the Court to commence an inquiry into whether the Court was deceived, including with respect to the existence of an underlying case or controversy and any purported arms-length negotiations undertaken to resolve it,” they wrote.
The settlement itself has triggered bipartisan concern in Washington.
Under the agreement, the Justice Department established a nearly $2 billion fund empowered to “issue formal apologies and monetary relief” to individuals who claim they were harmed by government actions. Officials said there are “no partisan requirements” for filing claims.
Still, lawmakers from both parties have questioned whether people convicted in connection with the Jan. 6, 2021, attack on the U.S. Capitol could potentially receive taxpayer-funded compensation through the program.
Trump originally filed the lawsuit in January after an IRS contractor leaked portions of his tax returns to several media organizations. The lawsuit has since been withdrawn following the settlement.
One provision in the agreement drew particular attention from legal observers. Acting Attorney General Todd Blanche reportedly barred the IRS from auditing prior tax returns belonging to Trump, his family, or his businesses as part of the resolution.
That detail fueled additional criticism because the IRS operates under the Treasury Department, not the Department of Justice. Critics argue the arrangement raises constitutional and procedural questions about executive authority and agency independence.
In their filing, the former judges warned that the settlement “threatens to undermine confidence in the administration of justice.”
They also questioned whether the lawsuit itself presented a valid legal dispute, given that Trump sued a federal agency that ultimately falls under his administration’s control.
The group includes former district judges, magistrate judges, and one former bankruptcy judge appointed by both Republican and Democratic presidents. Their request asks Judge Williams, an appointee of former President Barack Obama, to vacate her earlier order dismissing the case and examine whether the court was intentionally misled.
Also Read: Trump Slows Iran Nuclear Deal Talks as GOP Pressure and Gas Prices Rise
