President Donald Trump's administration is considering a settlement of Trump's lawsuits against the federal government that would see $1.7 billion made available to reimburse his allies for legal fees. Photo by Bonnie Cash/UPI | License Photo

May 16 (UPI) -- The Trump administration is considering the creation of a $1.776 billion fund to compensate people allied with President Donald Trump who were investigated during the Biden administration.

The fund would be part of a settlement with Trump that would result in him dropping his lawsuit with the Internal Revenue Service over the leaking of his tax returns six years ago, ABC News and The New York Times reported.

The deal emerged after months of negotiations between the White House and Department of Justice, which had originally been aiming to directly pay Trump, but conflict of interest concerns steered toward the compensation fund.

Although Trump has the right to sue as a private citizen, his position as president means that he also can instruct agencies within the executive branch, which would make him both the plaintiff and defendant in a trial.

The concept is partially modeled on an Obama administration compensation fund for Native American farmers and ranchers that distributed $760 million from the Treasury Department's Judgment Fund.

In addition to Trump allies' legal fees linked to investigations during his first term, the fund also likely would be open to people charged in the Jan. 6, 2021, riot at the Capitol building that saw the building get ransacked by Trump supporters.

Critics of the plan have called it a "slush fund" for Trump and his allies.

"An insane level of corruption -- even for Trump," U.S. Elizabeth Warren, D-Mass., said of the plan earlier this week.

Vice President JD Vance speaks during a news conference on anti-fraud initiatives in the Indian Treaty Room of the Eisenhower Executive Office Building at the White House on Wednesday. Photo by Daniel Heuer/UPI | License Photo

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Źródło: RAK Exa Editorial Beats