United States President Donald Trump, his family, and his businesses have been granted immunity from ongoing audits into their tax affairs. The directive, issued on Tuesday, May 19, 2026, by the Department of Justice, followed Trump's agreement a day earlier to settle a $10bn lawsuit against the Internal Revenue Service (IRS) over the leak of his tax information between 2018 and 2020.
According to a one-page document signed by acting Attorney General Todd Blanche, the Justice Department declared authorities would be “FOREVER BARRED and PRECLUDED” from “prosecuting or pursuing” tax claims against Trump, his family, and his businesses. The waiver applies to inquiries “currently pending or that could be pending”, including those related to tax returns filed before the settlement.
Democratic Lawmakers Condemn the Move
Democratic lawmakers reacted sharply. Senator Adam Schiff of California accused the Trump administration of corruption and “self-dealing”. He stated: “The tax-dodging President gets himself and his whole family a tax break, thanks to Todd Blanche.”
Nathan Goldman, professor of accounting at North Carolina State University, described the move as “unprecedented”. He explained: “The clause within the settlement that Trump and his family will no longer be subject to the audit process breaks from the current tax policies and puts Trump in a situation where he can pay what he believes is the correct amount without any fear of prosecution.” Goldman added that this exemption makes Trump different from other US taxpayers, who could face audits, penalties, and even jail time if they underpay taxes.
Constitutional Concerns Raised
Richard Painter, former chief White House ethics lawyer under President George W. Bush, warned the exemption could be unconstitutional. He said: “If the president or his family owe the IRS money, this is a violation of the domestic emoluments clause of the US Constitution, which specifically says that the president cannot receive any profits or advantages from the US government other than his salary appropriated by Congress.”
Break from Presidential Tax Tradition
While US presidents are legally required to file tax returns, they are subject to the same privacy protections as other taxpayers. Historically, every major-party presidential nominee since 1980 voluntarily released their tax returns until Trump broke with tradition during his 2016 campaign. The directive also expanded Trump's settlement agreement by establishing a $1.776bn “Anti-Weaponisation Fund” to compensate individuals claiming to be victims of politically motivated “lawfare”. Critics have labelled the initiative a “slush fund”, warning it could be used to reward Trump's allies.
Decisions on distributing money will be made by a five-member commission, four of whom will be appointed directly by Blanche. In heated exchanges with Democratic senators, Blanche denied the fund was partisan, saying: “Whether you're Hunter Biden, or whether you're another individual who believes they were the victim of weaponisation, they can all apply to this fund.”
Experts warn Trump's exemption from audits is unprecedented and breaks with US tax policy. In a related development, Meta agreed to pay President Donald Trump $25 million to settle a 2021 lawsuit he filed claiming he was wrongfully censored by Facebook and Instagram after the US Capitol riot. The Wall Street Journal first reported the settlement, which was seen as a victory for Trump.
