State’s governor looks to thwart US president’s plan to divert money to allies, including January 6 rioters

California governor Gavin Newsom is looking to thwart Donald Trump’s $1.776bn “anti-weaponization fund” by imposing a 100% tax on any payout received by state residents.

In May, the Department of Justice (DoJ) announced a fund to compensate alleged “victims of lawfare and weaponization”. It’s unclear who qualifies under this category.

The fund was the product of a settlement reached between Trump and the Internal Revenue Service (IRS) – the agency the president sued over his leaked tax returns.

Critics, including Newsom, have slammed the fund as a “boondoggle” designed to divert money to Trump’s allies. Speculation has swirled that its benefactors could include the individuals who were arrested in the 6 January 2021 siege of the US Capitol. The Trump administration has described the rioters as patriots and since pardoned many who were charged in relation to the attack.

  • Monte_Crisco@thelemmy.club
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    1 day ago

    Can someone explain this to me… Because the lawsuit was filed in federal court and had a judge working the case, the judge has to approve the settlement. But Trump came to this agreement with the DOJ and withdrew the case in a way that wouldn’t require the judge to approve it. But doesn’t that mean that this agreement is technically not a settlement to the case, and therefore it is meaningless?

    • Madison420@lemmy.world
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      1 day ago

      No. In civil cases you can settle outside of court without the judge being involved. It’s a settlement but not a legal one that has much of a chance of standing up in court.