A US federal judge has sharply criticised President Donald Trump’s lawsuit against the Internal Revenue Service (IRS), ruling that the case was filed for an “improper purpose” and referring one of his attorneys for possible disciplinary action.
In a strongly worded decision issued on Monday, US District Judge Kathleen Williams said the $10 billion lawsuit amounted to an abuse of the judicial system. She accused Trump of suing a federal agency under his own administration’s control, effectively eliminating the legal requirement that opposing parties in a lawsuit have genuinely adverse interests.
The lawsuit was originally filed over the public release of Trump’s tax returns. However, Judge Williams said the case appeared designed to legitimise a settlement that would have granted Trump immunity from future IRS tax audits while establishing a multi-billion-dollar compensation fund for political allies who claimed they had been unfairly targeted by the government.
Judge questions legality of settlement
Williams said the court was used to provide legitimacy to an agreement that exceeded the scope of existing law.
“The nature of the suit itself and the conduct of the parties and counsel from its filing make plain that this was an attempt to use the Court to provide some legitimacy to an agreement to confer immunity to people and entities affiliated with the President and to earmark billions of dollars from American taxpayers to redress grievances not defined in the law,” the judge wrote.
The ruling represents a significant legal rebuke, although its practical consequences may be limited because the Trump administration has since abandoned the proposed $1.776 billion Anti-Weaponization Fund, which had sparked bipartisan criticism.
Blanche’s role under scrutiny
The decision also places renewed focus on Acting Attorney General Todd Blanche ahead of his Senate Judiciary Committee confirmation hearing.
Judge Williams cited Blanche’s testimony before Congress in June, where he stated that the Anti-Weaponization Fund would no longer move forward. She noted that although no formal court filing reflected that change, Blanche appeared able to speak on behalf of both the plaintiffs and defendants in the case.
According to the judge, this raised serious concerns over whether the lawsuit represented a genuine legal dispute.
“Acting Attorney General Blanche’s apparent capacity to speak for both Plaintiffs and Defendants… demonstrates that there was only one party whose interests were being represented throughout this case,” Williams wrote.
Attorney referred for possible discipline
As part of the ruling, the judge referred one of Trump’s attorneys for disciplinary review over conduct related to the case.
Williams also stressed that all litigants, including the President, must follow the same legal standards when appearing before federal courts.
“The President may be the functional head of the Executive Branch, but as a party to a civil suit, he, as well as all the parties and lawyers before a court, are bound by the rules,” she wrote.
The decision revives scrutiny of the administration’s handling of the lawsuit and the abandoned settlement, even as the proposed compensation fund has already been shelved.