Trump Withdraws $10 Billion IRS Lawsuit Over Leak of His Tax Returns
President Donald Trump has moved to dismiss his $10 billion lawsuit against the Internal Revenue Service (IRS), filed in response to the leak of his tax returns. The motion was submitted just two days before a scheduled deadline to determine whether a legitimate legal controversy existed—a question complicated by Trump’s current authority over the agency.
The lawsuit sought damages after IRS contractor Charles Littlejohn leaked Trump's tax returns to ProPublica and the New York Times.
Reports indicate the withdrawal may be linked to a plan to create a $1.7 billion fund to compensate political allies, potentially including those involved in the January 6 Capitol riot. The fund would be drawn from the Treasury Judgment Fund. The Department of Justice declined to comment on the withdrawal.
U.S.-China Diplomatic Breakthroughs
President Trump and Chinese President Xi Jinping reportedly reached consensus on several key international issues, including:
- Iran’s nuclear program
- Reopening the Strait of Hormuz
- Denuclearization of North Korea
- Strategic stability between the U.S. and China
In a related move, China approved the purchase of 200 Boeing aircraft and agreed to buy at least $17 billion in U.S. agricultural products annually from 2026 through 2028.
Primary Elections and Political Shifts
In Kentucky’s 4th congressional district, incumbent Representative Thomas Massie (R) faces a primary challenge from Ed Gallrein, who has received Trump’s endorsement.
Meanwhile, Senator Bill Cassidy (R-LA) —who voted to convict Trump in his 2021 impeachment trial—has been voted out of his primary.
Taiwan has signaled willingness for President Lai Ching-te to speak directly with President Trump, a potential shift in long-standing U.S. policy.
State-Level and Economic Developments
Dozens of state-level anti-vaccine bills backed by the MAHA coalition failed after public health groups successfully lobbied Republican lawmakers.
In economic news, Trump told Fortune magazine that he may wait for interest rate cuts until the Iran war ends, and suggested he should have requested a larger stake in Intel.