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A bipartisan group of 35 former federal judges has asked a court to reopen President Trump’s lawsuit against the IRS, arguing the deal that ended it was a fraud on the court.

Some shit you should know before you dig in: Back in January, Trump, his two eldest sons, and the Trump Organization sued the IRS for $10 billion, claiming the agency failed to stop a former contractor, Charles Littlejohn, from leaking their tax returns (plus those of hundreds of other people) to The New York Times and ProPublica during Trump’s first term. Rather than fight it out in court, the two sides struck a deal: Trump agreed to drop the lawsuit, and in exchange the Justice Department created a $1.776 billion “Anti-Weaponization Fund” and blocked the IRS from auditing or chasing old tax returns belonging to Trump, his relatives, and his companies (the DOJ says Trump himself gets only an apology, no cash). Acting Attorney General Todd Blanche set up that fund to issue apologies and payouts to people who claim they were wronged or “weaponized” by the federal government, a stash of taxpayer cash critics call a “slush fund” for Trump’s friends.

President Donald Trump delivers his State of the Union address, Tuesday, February 24, 2026, on the House floor of the U.S. Capitol in Washington, D.C. (Official White House Photo by Andrea Hanks)

What’s going on now: In a motion filed on Wednesday in federal court in Miami, the 35 judges asked US District Judge Kathleen Williams to scrap her order shutting the case down and reopen it so she can investigate whether the entire thing was “a fraud on the Court.” Specifically, they want her to look into whether she “was deceived,” pointing to a suspicious chain of events. Williams had already grown skeptical of the lawsuit, questioning whether it was even a legitimate dispute since Trump was sitting on both sides of it: the guy suing the IRS, and, as president, the ultimate boss of the executive branch the agency answers to.

Then, two days before the parties were due to defend the case, Trump suddenly pulled the plug, telling Williams she had no power to second-guess his decision to bail. She closed the case but noted there was “no settlement of record,” yet within hours the deal’s terms popped up in public anyway, and a day later the DOJ tacked on an addendum shielding the Trump family from any past IRS investigations.

The judges argue that the sequence shows Trump and the Justice Department used a “collusive” lawsuit to win “unlawful private benefits” for the family and to create a fund handing out taxpayer money “without constitutional or congressional authority,” all while “short-circuiting” the court’s scrutiny. They also noted that the DOJ had previously fought basically the same claims from other people hit by that leak, and had even drawn up a memo on how to beat back Trump’s case.

The list of signatories includes prominent conservatives like J. Michael Luttig, a vocal Trump critic and Bush appointee. The Justice Department brushed off the effort, with spokeswoman Natalie Baldassarre calling the motion “frivolous” and insisting “there is nothing improper about this agreement.”

As of now, there’s been no comment from the White House.

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