
After getting vast amounts of blowback, Donald Trump is supposedly withdrawing the plan to establish a $1.776 billion fund pay off insurrectionists.
It is very clear that the problem here was Congress. Senate Majority Leader John Thune (R-SD) has taken the lead in suggesting gently, and sometimes not-so-gently, that the slush fund was a bad idea, particularly if Trump wants to have any chance at getting the reconciliation bill he's demanded. The Majority Leader of the United States Senate Does. Not. Say. such things publicly unless he is speaking for a big chunk of his conference (or caucus, if a Democrat).
That said, the biggest goodie in the package, at least from the vantage point of the Trump family, is still intact. Acting AG Todd Blanche told Congress, in no uncertain terms, that the agreement to let Trump off the hook for future investigations into him, his kids and his businesses remains in effect. This may be sufficient to get Republicans to pass the reconciliation bill, and to give ICE even more billions of dollars. Thus far, the Republican members of Congress have not done much to signal what way they are leaning (though keep in mind that, with or without the IRS "Get Out of Jail Free" card, the reconciliation bill is still a tough climb).
Even if Congressional Republicans roll over, as they so often do, Trump and his underlings are not out of the woods. U.S. District Judge Kathleen Williams has invoked her authority under Rule 11 to investigate whether this was all just a ruse to perpetrate a fraud on the court, and to use the judicial system as cover for not only the slush fund but also for offering protection to Trump, his businesses and his family from IRS and other agency investigations. Among the thing the judge is likely to want to know is what, if anything, Trump has given in exchange for these deals. A valid settlement agreement is a contract, where each side contributes something of value, also known as consideration. If there was collusion in bringing the case, and all sides understood that there were no valid claims here, then any so-called agreement is illegal and unenforceable. The judge can also order sanctions and other penalties if she finds that the case was a sham.
Incidentally, it's unclear to us why the media is reporting that this deal is only about Trump's taxes. The language is framed as a release of ALL claims any government agency may have against Trump and the other plaintiffs related to "the Case or the Pending Agency Claims," "Lawfare and/or Weaponization," or "any matters currently pending or that could be pending (including tax returns filed before the Effective Date) before Defendants or other agencies or departments." Did Blanche leave anyone or any part of the government out? We don't think so. In addition, if one looks carefully at the purported agreement, those capitalized terms also have special significance and purport to confer even broader immunity on Trump. For example, the term "Pending Agency Claims" refers to a claim Trump made under the Federal Tort Claims Act related to the search for classified documents at Mar-a-Lago. The release language could be read as prohibiting a future DoJ from refiling the criminal classified documents case against Trump.
The Supreme Court gave Trump immunity from most criminal prosecutions for acts while he's in office and now he's arranged to have his "former" personal attorney, Todd Blanche, give him, his family and his businesses immunity for all other actions taken while out of office. Trump is trying mightily to disprove that old adage that no one is above the law. So far, he's done a pretty good job of it, but we'll see what Williams, et al. have to say.
Meanwhile, we actually don't think the politics of this situation have changed all that much. Whether Trump does or does not get his $1.776 billion, he certainly tried to get it. And he may try again, once the reconciliation bill is dealt with, one way or another. And he is still actively trying to be excused from any and all accountability for any and all federal misdeeds. There's still plenty of cudgel here for the Democrats to use against Trump and his party, particularly since the blue team intends to make corruption a major part of its 2026 pitch.
In short, it seems like Trump's underlings have created yet another mess for him. That is what will happen when you have underlings that are both utterly obeisant and utterly incompetent. And keep reading. (L & Z)