Emily Bazelon and David French recently discussed an unusual development tied to Jeff Sessions and the Trump administration. Sessions, as Trump’s first attorney general, issued a 2017 memo aimed at prohibiting the Justice Department from using settlement funds to provide payments to third parties not directly impacted by legal disputes. He emphasized that the funds should solely compensate victims.
This policy was a reaction to instances where the Obama Justice Department’s settlement agreements faced criticism from Republicans. An example involved banks accused of troublesome lending practices before the 2008 financial crisis. In these cases, settlements involved financial donations to groups such as the National Council of La Raza and NeighborWorks. These organizations offered legal aid and community development in severely affected areas. Despite this, Republicans criticized the DOJ for allegedly bypassing Congress to benefit organizations favored by Democrats.
Contrasting this, the Trump administration’s Justice Department recently announced a substantial $1.776 billion fund. This fund circumvents Congress to appease Trump’s allies, in exchange for Trump and his family withdrawing a significant $10 billion lawsuit against the IRS over leaked tax information.
To further compound matters, the agreement included a grant of immunity for Trump, his family, and businesses from tax investigations in perpetuity, a provision captured in capital letters within the document signed by Acting Attorney General Todd Blanche.
David French pointed out the stark difference between Obama-era practices and what Trump aimed to establish. The latter involved creating a personal slush fund, with payment procedures defined by Trump himself. The fund’s size, $1.776 billion, holds the potential to significantly benefit associates affiliated with his MAGA movement.
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