Wyden, Finance Committee Democrats Call for Bipartisan Investigation of Trump Slush Fund and Interference with Tax Audits

Wyden, Finance Committee Democrats Call for Bipartisan Investigation of Trump Slush Fund and Interference with Tax Audits

Washington, D.C. - Led by Ranking Member Ron Wyden (D-Ore.), the Democrats on the Senate Finance Committee called on Chairman Mike Crapo (R-Idaho) today to launch a bipartisan committee investigation into the corrupt settlement of Donald Trump's lawsuit against his own administration, the creation of a $1.8 slush fund for right-wing violence and subversion, and the Department of Justice's directive cutting off any audits of the Trump family and their businesses.

"This so-called 'settlement,' which circumvents proper judicial review and the congressional appropriations process, amounts to an unprecedented looting of taxpayer dollars," the senators wrote in a letter to Chairman Crapo. "Any such graft by a sitting President must be subject to strenuous Congressional oversight. These actions by the President, 'one of the single most corrupt acts in American history,' demand a full and thorough investigation by this committee."

The senators' letter is below and available for download here.

Dear Chairman Crapo,

We're writing to demand an immediate Finance Committee investigation into the facts and circumstances surrounding President Trump's so-called "Anti-Weaponization Fund" and the Department of Justice directive that cuts off any audits of the President, his family or his businesses. The fund, which was established as a result of the President's lawsuit against the Internal Revenue Service (IRS), has been called "one of the single most corrupt acts in American history" by an ethics watchdog and seems designed to secretly hand out taxpayer dollars to the President's political allies and supporters, such as his cadre of election deniers and January 6th insurrectionists. Longstanding statute prohibits the President and certain other executive branch employees from, directly or indirectly, directing or interfering in IRS audits. The administration's actions require an immediate Congressional response.

As you are well aware, on January 29, 2026 the President sued the IRS and the U.S. Treasury for an outrageous sum of $10 billion over the improper release of tax information during his first term in office. On May 18, 2026 the Department of Justice (DOJ) announced that as part of a "settlement agreement" with the President, it will create the "Anti-Weaponization Fund" which will usurp over $1.7 billion in taxpayer dollars for the express purpose of transferring American tax dollars to those the DOJ describes as victims of "weaponization and lawfare." The DOJ then expanded the settlement agreement further on May 19, 2026, adding a provision that will prevent the IRS from pursuing, or continuing to pursue, any audits of returns filed before the date of the agreement against President Trump, his family members, or his businesses. The expanded settlement agreement states that the "United States releases, waives, acquits, and forever discharges each of the plaintiffs from, and is hereby forever barred and precluded from prosecuting or pursuing any and all claims…" as of the date of the settlement agreement.

The Treasury Department's actions were integral to the creation of this fund. The settlement agreement was signed by so-called "IRS Chief Executive Officer" Frank Bisignano, and Treasury Secretary Scott Bessent took suspiciously timed action to cancel contracts with an IRS consultant days ahead of the lawsuit. This new fund will draw money directly from the Judgement Fund, placing the authority to issue payments directly in the hands of Treasury Secretary Bessent. Reports that Treasury General Counsel Brian Morrissey resigned his position the same day this agreement was signed further underscore the need for oversight. Furthermore, reporting indicates that lawyers at the IRS provided Treasury officials with a 25-page memorandum recommending the DOJ move to dismiss President Trump's lawsuit, but it is unclear what Sec. Bessent or others did with this information.

Committee members previously sent two requests to Secretary Bessent seeking information about Treasury's actions related to this lawsuit. The letters asked questions about the Treasury's involvement in the negotiations, whether the Department would recommend that the DOJ fight or settle the case, and the Secretary's decision to abruptly cancel IRS contracts days ahead of Trump's lawsuit. Each time the Treasury refused to provide any answers on their role in this scheme, in violation of Sec. Bessent's sworn commitment to you during his confirmation hearing to be responsive to all members of this Committee.

This so-called "settlement," which circumvents proper judicial review and the congressional appropriations process, amounts to an unprecedented looting of taxpayer dollars. Any such graft by a sitting President must be subject to strenuous Congressional oversight. These actions by the President, "one of the single most corrupt acts in American history," demand a full and thorough investigation by this Committee.

Sincerely,

Senator Ron Wyden

Senator Maria Cantwell

Senator Michael Bennet

Senator Mark Warner

Senator Sheldon Whitehouse

Senator Maggie Hassan

Senator Catherine Cortez Masto

Senator Elizabeth Warren

Senator Bernie Sanders

Senator Tina Smith

Senator Ben Ray Lujan

Senator Raphael Warnock

Senator Peter Welch

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