Kraig Pakulski / Monday, May 18, 2026 / Categories: Regions, California; Santa Barbara County Trump drops lawsuit against IRS amid talks of establishing a $1.8 billion fund for allies By Tierney Sneed, CNN (CNN) — President Donald Trump is dropping his $10 billion lawsuit against the Internal Revenue Service, according to court documents, a signal that the administration is preparing to go forward with a plan to set up $1.8 billion fund that would compensate those who believe they were subject to unfair investigations under previous administrations. Monday morning’s court filing did not give any details of a settlement. Rather, it noted that the case was still in a very preliminary phase. Trump’s lawyers said that meant that he did not need to ask for permission to dismiss the case nor did the IRS need to consent to the dismissal. The filing said he was dismissing with prejudice, which would foreclose his ability to try to bring the case again. This story is breaking and will be updated. The-CNN-Wire™ & © 2026 Cable News Network, Inc., a Warner Bros. Discovery Company. All rights reserved. The post Trump drops lawsuit against IRS amid talks of establishing a $1.8 billion fund for allies appeared first on News Channel 3-12. Previous Article 3.2-Magnitude Earthquake Rattles Near Rio Dell on May 17, No Damage Reported Next Article Lululemon calls founder’s ideas ‘misguided’ in public letter Print 11 Rate this article: No rating Tags: CNN - US Politics Please login or register to post comments.