US President Donald Trump has secured a sweeping legal deal with the Justice Department permanently blocking federal tax authorities from pursuing current or future tax investigations into him, his sons and his companies.
The extraordinary agreement, signed by acting Attorney General Todd Blanche and published on the Justice Department's website on Tuesday (local time), states the US government is "FOREVER BARRED and PRECLUDED" from prosecuting or pursuing claims linked to Trump and related entities.
The one-page order forms part of a settlement tied to Trump's $US10 billion ($A14 billion) lawsuit against the Internal Revenue Service (IRS) over the leak of his tax returns.
The settlement means the US government will permanently drop tax claims against Trump, while the IRS will no longer be allowed to audit tax returns filed before Monday or pursue matters "that were raised or could have been raised".
The agreement applies not only to Trump himself, but also to his sons, affiliated companies and related entities.
The decision protects Donald Trump and his empire from scrutiny of his tax arrangements.
The document states the US "releases, waives, acquits, and forever discharges" the plaintiffs from claims, appeals, examinations, reviews and requests for relief connected to the case.
The unprecedented arrangement marks an extraordinary use of executive power and has sparked fierce backlash from Democrats, ethics watchdogs and political analysts, with critics arguing the deal stretches presidential authority to extraordinary lengths and risks undermining the independence of federal institutions.
The settlement comes just one day after the Trump administration announced the creation of a nearly $US1.8 billion "Anti-Weaponisation Fund" designed to compensate Trump allies and others who believe they were unfairly targeted by politically motivated investigations and prosecutions.
According to the Justice Department, the fund will create "a lawful process for victims of lawfare and weaponisation to be heard and seek redress".
The scheme will allow individuals claiming they were victims of "lawfare" or political prosecutions — including under the Biden administration Justice Department — to apply for financial compensation.
A Justice Department document signed by acting Attorney General Todd Blanche outlines a settlement shielding Donald Trump, his sons and businesses from future federal tax investigations.
Critics have raised alarm over who may ultimately benefit from the fund. Blanche refused to rule out whether people involved in the Capitol riot on January 6, 2021, could receive payouts.
Trump supporters stormed the US Capitol in an attempt to overturn certification of Joe Biden's 2020 election victory.
The US president told reporters at the White House on Monday the fund was intended to reimburse people who had been "horribly treated".
Democratic lawmakers and ethics watchdogs have slammed the fund as opaque and potentially corrupt, warning it could become a political "slush fund" benefiting Trump allies.
The fund was announced after Trump, his sons Eric Trump and Donald Trump Jr, and the Trump Organization agreed to drop their lawsuit against the IRS and the Treasury Department.
The lawsuit alleged the leak of confidential tax records caused reputational and financial harm and negatively affected the family's public standing.
Under a separate settlement agreement, Trump will receive a formal apology from the US government but "will not receive any monetary payment or damages of any kind".
The arrangement triggered an immediate backlash from senior Democrats. Senate Democratic leader Chuck Schumer labelled the agreement "a get-out-of-jail-free card that (Trump) negotiated with himself".
"His corruption knows no end," Schumer said.
Democratic Senator Ron Wyden also condemned the settlement, vowing lawmakers would fight what he described as a "self-dealing" arrangement and accusing the administration of interfering in the independence of IRS audits.
"Not only is this another heinously corrupt act by the most corrupt administration in history, it's clearly a violation of the law that prohibits interference by executive branch officials in IRS audits," Wyden said.
