How Trump's $10 billion suit against his own government could go sideways
WASHINGTON — It would seem a surefire path to a payout.
A sitting president files suit demanding $10 billion in damages from a federal government he oversees, alleging he's been wronged in his personal capacity. That scenario would appear to give him final say on whether he walks away with a settlement and just how big it should be.
As President Donald Trump describes it, any taxpayer money that he gets from the suit that he, his two oldest sons and the Trump Organization filed last month against the IRS and the Treasury Department would go to worthy causes.
“And any money that I win, I’ll give it to charity, 100% to charities, charities that will be approved by government or whatever,” the president said Wednesday in an interview with “NBC Nightly News” anchor Tom Llamas.
If things get to that point.
Any number of developments in and out of the courtroom could sidetrack a settlement arising from Trump’s complaint, legal experts, lawmakers and ethics specialists told NBC News.
Sen. Ron Wyden, D-Ore., plans to introduce legislation next week to prohibit Trump from receiving any payout from the lawsuit, according to spokesperson Ryan Carey. The bill would propose a 100% tax on any litigation proceeds and settlement in the case, Carey said in an interview.
On Thursday, the watchdog groups Common Cause and the Project on Government Oversight, along with four former federal officials, submitted a 23-page friend of the court brief asking the court to consider delaying the case until Trump leaves office in January 2029, among other requests.
The brief contends that "the conflicts of interest make it uncertain whether the Department of Justice will zealously defend the public [treasury] in the same way that it has against other plaintiffs claiming damages for related events."
The case has its origins in Trump's first term. A former IRS contractor, Charles Littlejohn, pleaded guilty more than two years ago to stealing Trump's tax records and thousands of others in 2019 and 2020 before leaking them to news outlets. He is serving a five-year prison term.
“What’s the true harm that he [Trump] is still experiencing that requires this amount of taxpayer money at this juncture?” said Lisa Gilbert, co-president of Public Citizen.
The White House referred questions to Trump's private attorneys. A spokesman for his outside legal team wrote in an email: “The IRS wrongly allowed a rogue, politically-motivated employee to leak private and confidential information about President Trump, his family, and the Trump Organization to the New York Times, ProPublica and other left-wing news outlets, which was then illegally released to millions of people. President Trump continues to hold those who wrong America and Americans accountable.”