A bipartisan group of 35 former federal judges has asked Judge Kathleen M. Williams to reopen President Trump's lawsuit against the Internal Revenue Service and investigate whether the deal's terms constitute fraud. The motion, filed in Miami federal court, targets the unusual agreement that emerged after Trump voluntarily dismissed his January suit claiming $10 billion in damages from leaked tax returns.

The former judges argue Trump improperly sought unlawful private benefits through the litigation, which resulted in a $1.8 billion compensation fund for allies claiming government 'weaponization' and significant tax breaks for the Trump family. They contend the president attempted to shield these arrangements from judicial scrutiny by withdrawing the case just before critical briefs were due, then presenting the deal as a fait accompli.

Judge Williams had previously expressed concerns about Trump's legal self-dealing, noting he controlled the IRS while suing it. When Trump abruptly dismissed the case, she closed it but observed there was no 'settlement of record.' Within hours, however, the compensation fund terms surfaced publicly, followed by an addendum granting the Trump family immunity from past IRS investigations.

Two additional lawsuits seek to block the fund's payouts, including one from injured Capitol Police officers who argue the administration exceeded statutory authority. Senate Republicans have voiced skepticism about taxpayer money flowing to Trump supporters, creating further political pressure around the controversial arrangement.