United States of America - January 2026

On 29 January, President Trump and two of his sons filed a lawsuit against the federal government over leaks of their business and personal tax returns, seeking USD 10 billion in damages. A former contractor who was convicted of leaking the tax returns to media outlets in 2020 is currently serving a 5-year prison sentence.  President Trump is effectively bringing a lawsuit against his own administration as a private individual. Because the Department of Justice (DoJ), which is part of the executive branch and ultimately answers to the president, would have discretion to either defend against or settle the case, the arrangement raised concerns over a significant conflict of interest and the potential for collusive litigation.

Update:  On 24 April, a federal judge ordered a hearing on whether the lawsuit entailed an actual case or controversy, and whether a president suing the federal government he has authority over is permissible under the Constitution. On 19 May, President Trump dropped his lawsuit after reaching an agreement with the DoJ under which a $1.776 billion ‘Anti-Weaponization’ fund  to compensate individuals who claimed they had been unfairly persecuted by federal authorities, would have been established. This sparked outcry from members of both main political parties, who questioned the use of public funds in connection with a lawsuit brought by the president against his own administration. In June, the Acting Attorney General announced that the DoJ would not proceed with the establishment of the fund, but the deal would still bar tax authorities from pursuing claims on existing audits involving Trump, his two eldest sons, or the Trump Organization. On 13 July, a federal judge ruled that Trump improperly used litigation against the IRS, barring him from claiming that the tax protections he obtained were the product of a valid settlement. The District Judge concluded that ‘there was never a case or controversy’ given the alignment and lack of adverseness between the parties.

Sources: BBC, Politico, NBC, AP (1), Politico (2), ABC News, CNN, FT, Reuters, The Guardian, NY Times, NY Times (2)