'Suing himself to pay himself': Levin accuses Trump of blatant corruption over IRS lawsuit deal

Rep. Mike Levin (D-CA) slammed the Justice Department's plan to settle a lawsuit by President Donald Trump against the Internal Revenue Service (IRS) with a $1.7 billion "slush fund," calling it "illegal" and "corrupt" in an X post. Levin clarified in a statement that the money for the settlement, which is supposed to come from the judgment fund, belongs to a treasury account built to pay legitimate court judgments against the United States. "That's what it was designed for, and that is not what this is," he argued.

The Californian lawmaker also flagged concerns with the commission that will be set up to manage the fund. He underscored the lack of oversight in the commission's functioning, which will not be open to public scrutiny.

"Trump would pick who sits on it. Trump could remove anyone at any time for any reason... the commission would have no obligation to disclose its procedures or decision-making," he said, suggesting the secrecy will cover people who receive money, along with the amounts and reasons.

"The only thing that wouldn't be secret is where the money would come from. And that's from you. That's from your tax dollars," Levin explained, adding that 1,600 people, charged in connection with the Capitol riots on January 6, 2021, will be in line to receive payments from this fund. "The deal says Trump can't personally receive payments, but his businesses may not be excluded."

Levin's comments come at a time when Democrats are ramping up pressure on the Trump administration over allegations of systemic corruption in the run-up to the midterms in November. His post hints at a system of presidential self-dealing fueled by an opaque, multi-billion-dollar slush fund, propped up with taxpayer money.

In Levin's view, the fund will become a tool for Trump to pay off his allies, while keeping "every dollar, every recipient, every decision" hidden from the public. "It's a pattern. It's illegal, and it has to stop. The power of the purse belongs to Congress. It is being dismantled, and the Republicans are doing nothing to stop it," Levin, a member of the House Committee on Appropriations, said.

Meanwhile, it appears that the federal government is looking to proceed with the plan after Trump, along with his sons and the Trump Organization, dropped the $10 billion lawsuit against the IRS, CNBC reported. There is no clarity on the reasons for the move, but this is likely to prevent the court from adjudicating on whether the suit was valid or not, the report added.