In a new court filing, House Democrats objected to a potential settlement in the works between President Donald Trump and his own administration, warning it creates the “specter of corruption unparalleled in American history.”
In a new amicus brief filed Monday in the Southern District of Florida — and shared first with MS NOW — the Democrats argue the president is working to “undermine the Constitution” through his months-old lawsuit against the Internal Revenue Service and a reported pending deal, which they say amounts to a “slush fund” for the president and his allies.
These Democrats urge Judge Kathleen Williams to dismiss the president’s lawsuit and closely scrutinize any potential deal.
“Never in the history of the United States has a sitting President sought a monetary settlement from the government he leads — let alone sought many billions of dollars in taxpayer funds,” the Democrats wrote.
In January, Trump, his two eldest sons, and his business sued the IRS — which Trump currently oversees as president — over the unauthorized leak of his tax returns by a government contractor. They asked for $10 billion in damages.
But then, late last week, ABC News reported that Trump may drop the lawsuit against the IRS in exchange for the creation of a $1.7 billion compensation fund that could be used to pay the president’s allies who claim to have been wrongfully targeted by the Biden administration’s “weaponization” — including, reportedly, the roughly 1,600 defendants charged in connection to the Jan. 6, 2021, riot at the U.S. Capitol.
That report immediately drew concern from Democrats.
In a Monday morning filing, Trump moved to drop the $10 billion lawsuit against the IRS, though that doesn’t rule out the possibility of a settlement with the IRS — like the one Trump has discussed.
And in their brief, the Democrats argue that such a move — ”filing a collusive lawsuit only to immediately dismiss it in order to produce a collusive settlement” would be “legally barred.”
“It would also raise serious questions about whether the parties have manipulated the court system to achieve illicit ends,” they add.
The amicus brief is led by Rep. Joe Neguse of Colorado, Rep. Jamie Raskin of Maryland, Rep. Richard Neal of Massachusetts, and House Democratic Leader Hakeem Jeffries of New York. All told, 93 House Democrats co-signed the brief.
In the filing, the Democrats argue first and foremost that the judge should dismiss the case, saying the president is effectively “self-dealing” because he has a role on both sides of the litigation. He is, after all, both the person suing the IRS and the man in charge of overseeing the IRS.
“This President,” the Democrats write, “has continually asserted a maximalist view of his own Executive authority, foreclosing any possible argument that the agencies appearing here as Defendants have autonomy or independence from him.”
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Notably, the U.S. district court judge in this case had already asked the Department of Justice and Trump’s legal team to explain whether the case can even be heard by the court given Trump’s presence on both sides of the matter. She gave them a May 20 deadline.
In their friend of the court filing, the Democrats also argue that any settlement in this case would amount to a “straightforward violation” of the Domestic Emoluments Clause in the Constitution — in other words, the acceptance of gifts and payments from domestic institutions.
“Should this lawsuit achieve Plaintiffs’ desired ends, it would result in the improper and unconstitutional transfer of taxpayer dollars into the pockets of the President, his family, and his allies,” the Democrats write.
They also take issue with the reported potential creation of a $1.7 billion fund to compensate individuals allegedly harmed by the Biden administration — arguing it would be “statutorily and constitutionally” inappropriate.
Recipients of this funding, the Democrats note, would not have claims related to the “statutory causes of action” in this case.
And, they argue, it would violate constitutional norms about federal spending — namely that Congress controls the purse strings. “Congress has not authorized any fund, much less one involving billions of taxpayer dollars, for these purposes,” the Democrats write.
Democrats have promised to make rooting out corruption a central tenet of their oversight focus, should they win back control of the House in the fall’s midterm elections.
In a statement, Neguse — who heads the House Democrats’ Litigation Task Force, which was set up last year to push back on the Trump White House — wrote, “Donald Trump’s absurd $10 billion lawsuit against the IRS is one of the most brazen examples of corruption we’ve seen from this administration.”
“House Democrats are taking a stand for the American taxpayers that would be forced to foot the bill for this mess, and are calling on the court to block any unconstitutional settlements in the matter,” Neguse said.
Kevin Frey is a congressional reporter for MS NOW.