Reed Probes Trump’s Corrupt, Self-Dealing $1.776 Billion Slush-Fund

WASHINGTON, DC - After the Trump Administration announced that President Trump is "settling" a lawsuit and attempting to grant himself control of a $1.776 billion non-transparent slush fund, paid for by U.S. taxpayers, the New York Times reported that Internal Revenue Service (IRS) officials prepared a previously undisclosed 25-page document outlining critical flaws with the settlement.

According to the reporting, lawyers at the Department of Justice (DOJ), which represents the IRS in court, "struggled with whether they could oppose a lawsuit filed by Mr. Trump." The DOJ reportedly did not dispute any of the claims in President Trump's lawsuit before moving to settle.

U.S. Senator Jack Reed (D-RI), a member of the Senate Appropriations Committee who has called President Trump's slush-fund "flat out corruption of the judicial system," is probing the Trump Administration's shady, self-dealing slush fund and is demanding that the IRS provide the memorandum to Congress by this time next week.

In a letter to Treasury Secretary Scott Bessent and "Chief Executive Officer" of the IRS Frank Bisignano, Senator Reed criticized DOJ's decision to move to settle without ever appearing in court or addressing the flaws in the lawsuit apparently pointed out by IRS career civil servants.

Senator Reed wrote: "Rather than challenging the President's claims, DOJ entered into a settlement agreement creating $1.8 billion taxpayer-financed fund that the President will be able to control through intermediaries without any truly independent oversight."

"Since the legal case has concluded, I request that you provide the IRS memorandum to the Committee not later than May 28, 2026," Reed continued.

Full text of Senator Reed's letter follows below and can be found here.

May 21, 2026

The Honorable Scott Bessent

Secretary of the Treasury

U.S. Department of the Treasury

1500 Pennsylvania Avenue, NW

Washington, DC 20220

Mr. Frank J. Bisignano, CEO

Internal Revenue Service

1111 Constitution Avenue, NW

Washington, DC 20224

Dear Secretary Bessent and Mr. Bisignano:

According to the New York Times ("The I.R.S. Thought It Could Fight Trump's Lawsuit, but It Struck a Deal Anyway," May 19, 2026), officials at the Internal Revenue Service (IRS) prepared a 25-page memorandum in April 2026 advising the Department of Justice to contest President Trump's lawsuit against the agency. Rather than challenging the President's claims, DOJ entered into a settlement agreement creating $1.8 billion taxpayer-financed fund that the President will be able to control through intermediaries without any truly independent oversight. Since the legal case has concluded, I request that you provide the IRS memorandum to the Committee not later than May 28, 2026.

Thank you for your attention to this request.

Sincerely,

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