President SUES Own Government for $10 Billion

A sitting president is suing his own government agencies for ten billion dollars of taxpayer money, allegedly to donate it all to charity.

Story Snapshot

President Trump filed a $10 billion lawsuit against the IRS and Treasury Department over leaked tax returns from 2020
The suit targets agencies Trump himself oversees as chief executive, creating unprecedented intra-administration conflict
Trump now floats settling by donating proceeds to charities like the American Cancer Society to deflect criticism
Former IRS contractor Charles Littlejohn is serving five years in prison for illegally accessing and leaking the confidential records
Critics call the lawsuit shameless corruption while supporters frame it as vindication for privacy violations

When the President Sues Himself

The lawsuit filed January 29, 2026, in Florida’s Southern District puts Donald Trump, his sons Donald Jr. and Eric, and the Trump Organization as plaintiffs against the very federal agencies Trump commands as president. The IRS and Treasury Department stand accused of failing to prevent Charles Littlejohn, a contractor, from illegally accessing and leaking Trump’s tax returns to The New York Times in 2020. Littlejohn pleaded guilty in 2023, received a five-year prison sentence, and remains incarcerated. The suit demands $10 billion for privacy violations and alleged harm to Trump family business interests.

The Charitable Pivot That Changes Everything

Aboard Air Force One on January 31, Trump told reporters he’s “thinking about” settling the lawsuit by directing any proceeds to charities. He specifically mentioned the American Cancer Society, adding that “nobody would care because it’s going to go to numerous very good charities.” This pivot addresses the obvious optics problem: a billionaire president extracting billions from taxpayers looks indefensible, but the same president funneling government settlement money to cancer research sounds almost noble. The timing of this announcement, just two days after filing, suggests careful strategizing about public perception.

'WE'RE THINKING ABOUT…': President Trump says he's considering settling his $10 billion lawsuit against the IRS and donating the money to numerous charities.

Trump filed the lawsuit last week accusing the IRS of unlawfully leaking his confidential tax returns in a… pic.twitter.com/42svjxKYth

— Fox News (@FoxNews) February 1, 2026

The Rogue Contractor Who Started It All

Charles Littlejohn’s actions created this legal mess. As an IRS contractor with security clearance, he accessed confidential tax information for Trump and other wealthy Americans, then leaked it to media outlets including The New York Times and ProPublica. The Times published stories in 2020 revealing Trump’s financial losses and tax avoidance strategies during his first term. Littlejohn’s 2024 deposition testimony detailed how he leaked information on all Trump business holdings. His conviction established clear criminal wrongdoing, giving Trump’s privacy violation claims factual foundation regardless of the astronomical dollar figure attached.

Unprecedented Constitutional Territory

No president in American history has sued executive branch agencies under his control for billions in taxpayer funds. The Justice Department, led by Trump appointees, faces the awkward position of potentially defending the IRS and Treasury against their own boss. This mirrors Trump’s earlier $230 million administrative claim against the DOJ for previous investigations. The Florida venue choice suggests forum shopping for favorable treatment, though the assigned judge is an Obama appointee. Constitutional scholars have no roadmap for how courts should handle a chief executive demanding massive payouts from agencies he directs.

The Privacy Versus Transparency Debate

Trump broke modern presidential norms by refusing to release tax returns, becoming the first recent president to withhold them. His supporters argue this makes Littlejohn’s leak a serious privacy crime deserving compensation. Critics counter that presidential financial transparency serves the public interest, and Trump’s victimhood claims ring hollow given his administration’s own data practices. Senator Ron Wyden called the lawsuit “shameless corruption” and noted the irony of Trump demanding privacy protections while his administration shares sensitive information on immigrants and others. This philosophical divide about elite privacy rights versus public accountability won’t resolve easily.

Following the Money That Doesn’t Exist Yet

The $10 billion figure appears disconnected from any damage calculation methodology disclosed in public filings. Taxpayers would foot the bill for any settlement or judgment, making this effectively a transfer from public coffers to Trump family interests, even if ultimately redirected to charity. The charitable donation strategy, if executed, would let Trump claim moral high ground while still extracting government funds based on victimhood. No settlement has been formalized, and the case remains in early stages. Whether federal agencies will settle with their own boss, how courts will navigate the constitutional conflicts, and whether charities will accept potentially controversial donations all remain open questions.