Lawmakers Race to Protect Taxpayers From Federal Overreach

Following the introduction of President Donald Trump’s taxpayer-funded “anti-weaponization fund,” members of Congress from both sides of the political spectrum are moving to protect taxpayers from further exploitation and harm.

Last week, Trump announced a $1.8 billion fund as part of a settlement that would also block the Internal Revenue Service's (IRS) investigations into his taxes. The taxpayer-funded program could compensate Trump allies, affiliated entities and Jan. 6 defendants for alleged Biden administration “weaponization.”

In response to this fund, Representative Lizzie Fletcher (D-TX) is introducing the "No Presidential Self-Serving Lawsuits Act" to prevent presidents from suing the United States government while in office. The bill also restricts the use of the Treasury’s Judgment Fund to settle those claims, even after leaving office.

Rep. Fletcher called Trump’s proposed “slush fund” and prior $10 billion IRS lawsuit a “perversion of our system of justice,” noting he also appointed former attorney Todd Blanche to the Department of Justice to help determine fund eligibility.

“Most of us could not have imagined that such a ‘settlement’ could occur, or that there are not more clear and obvious prohibitions to this outcome,” Rep. Fletcher said.

Other Texas Democrats like Rep. Jasmine Crockett have introduced similar legislation to limit presidential abuse of government resources and prevent self-serving legal settlements.

“The corruption and abuse is staggering, even for this administration,” Rep. Fletcher said.

But Republican lawmakers are also pushing legislation to protect American taxpayers.

Rep. Nathaniel Moran (R-TX) recently introduced the Taxpayer Due Process Enhancement Act to expand taxpayers’ ability to challenge IRS actions in court and strengthen protections against IRS overreach

“This legislation advances fairness and accountability in our tax system—guaranteeing no one loses their day in court over arbitrary deadlines or IRS overreach,” Rep. Moran said.

Rep. Moran said the bill would bolster taxpayer protections by giving Americans more time to file claims and reinforcing the authority of the U.S. Tax Court.

“By protecting taxpayer rights, extending filing windows and strengthening Tax Court jurisdiction, we are delivering real, lasting safeguards for every American,” Rep. Moran said.