On Friday, President Donald Trump appealed a federal judge’s finding that his $10 billion IRS lawsuit was filed in bad faith, while expressing disappointment that the controversial $1.776 billion "lawfare" fund tied to the proposed settlement had been scrapped.
Trump, two of his adult sons, the Trump Organization and two attorneys filed a notice Friday appealing U.S. District Judge Kathleen Williams’ July 13 order to the 11th U.S. Circuit Court of Appeals, CNBC reported.
Williams concluded that the lawsuit — which stemmed from the disclosure of Trump’s tax returns by a former IRS employee — was used to provide "judicial legitimacy" for a settlement that lacked a viable legal or factual foundation.
The judge found that the plaintiffs allegedly used the litigation to pursue access to taxpayer funds and protections from certain IRS enforcement actions.
Trump’s legal team defended the appeal, saying, "President Trump continues to hold those who wrong America and Americans accountable."
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Trump Says Controversial Fund Is ‘Dead’
In the afternoon, Trump also addressed the now-defunct $1.776 billion fund during a Cabinet meeting at Camp David.
"They’ve agreed to not have a fund. But there are a lot of people that are very upset about it," Trump said.
He later added, "The fund is dead, but, you know, I wish it weren’t," while discussing people he believes were unfairly targeted by federal law enforcement.
Under the proposed settlement, Trump and the other plaintiffs would have dropped the lawsuit in exchange for the Justice Department creating a fund for people claiming they were victims of government "lawfare."
The agreement also reportedly included protections involving past federal tax returns of Trump, his family members and related entities.
Senate Concerns Stall Todd Blanche Nomination
The fund has also become a point of contention in the Senate, where several Republican lawmakers have withheld support for Trump’s nominee for attorney general, Todd Blanche.
In a Truth Social post Friday, Trump wrote, "I will always feel that these victims of government abuse should be paid back for what they were forced to endure, their lives have been ruined!"
Judge Imposes Nonmonetary Sanctions
Williams imposed several nonmonetary sanctions, including a referral of attorney Alejandro Brito to the Florida Bar for possible disciplinary action.
She also barred attorney Daniel Epstein from appearing in the Southern District of Florida for one year.
The judge did not explicitly invalidate the settlement, saying the enforceability of any private agreement between the parties was not before the court.
The Justice Department previously rejected the judge’s characterization, saying, "There was no collusion in this case," and accused Williams of disregarding decades of legal precedent.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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