Judge orders Trump, DOJ to justify why president’s $10B IRS lawsuit should proceed
President Trump Signs Executive Order At The White House (Photo by Tasos Katopodis/Getty Images)
(WASHINGTON) — A federal judge is raising concerns about whether Donald Trump’s attempt to sue the IRS for $10 billion can proceed, signaling she could throw out the case because the president oversees the government entities he is suing.
Judge Kathleen Williams raised the issue in an order on Friday denying a request to delay the case amid possible settlement talks.
She noted that Trump and the defendants — the Treasury Department and IRS — may not be “sufficiently adverse” to one another for the case to proceed.
“Moreover, although President Trump avers that he is bringing this lawsuit in his personal capacity, he is the sitting president and his named adversaries are entities whose decisions are subject to his direction. Indeed, President Trump’s own remarks about this matter acknowledge the unique dynamic of this litigation,” she wrote.
Williams ordered both Trump’s lawyers and the Department of Justice to submit briefs about why the case should proceed and set a hearing for next month. For the case to proceed, Trump’s lawyers and the DOJ need to establish that the lawsuit is “a dispute between parties who face each other in an adversary proceeding.”
“Typically, adverseness is found in a situation where one party is asserting its right and the other party is resisting,” she noted.
But with Trump in charge of the very government entities he is suing, Williams noted that the required adverse relationship between the parties may not exist. She added that Trump has signed multiple executive orders tightening the president’s control over the executive agencies like the Department of Justice.
“One such employee of the executive branch, the Attorney General, has a statutory obligation to defend the IRS when it is hailed into court, but then is ostensibly required by executive mandate to adhere to the President’s opinion on a matter of law in such a case. This raises questions over whether the Parties here are truly antagonistic to each other,” Williams noted.
Trump, his sons Eric Trump and Donald Trump Jr., and the Trump Organization filed a lawsuit against the Internal Revenue Service and Treasury Department in January related to the unauthorized disclosure of tax information during Trump’s first term.
A government contractor with the IRS pleaded guilty in 2023 to stealing the tax information of Donald Trump and other wealthy Americans and leaking it to media outlets in 2019 and 2020.
In a court filing last week, lawyers for the Trumps said that they were “in discussions” with the Department of Justice to potentially resolve the lawsuit and requested a deadline extension so they can “engage in discussions designed to resolve this matter and to avoid protracted litigation.”
The filing said both sides agreed to the 90-day extension. The Department of Justice had not yet responded to the lawsuit and faced an impending deadline this month.
The Trumps, in the suit, argued that the IRS and Treasury Department should have had “appropriate technical, employee screening, security, and monitoring” to prevent the theft of tax information.
A group of former government officials last month filed an amicus brief with the court to raise concerns about the ethics of the president suing his own government for billions.
“This case is extraordinary because the President controls both sides of the litigation, which raises the prospect of collusive litigation tactics,” the amicus filing said. “To treat this case like business as usual would threaten the integrity of the justice system and the important taxpayer and privacy protections at the heart of this case.”
Rufe filed an inspection report on Monday evening, where she wrote that the 34 panels, both glass and metal, are stored in a “secure” place at the National Constitution Center and have not been “destroyed,” but Rufe noted that some panels “exhibited damage.”
“Still to be determined by the Court is the extent of any damage and the integrity of the exhibits regarding their amenability to being restored to their original condition,” Rufe wrote.
Counsel for the Trump administration and for the city of Philadelphia attended the inspection, after which Rufe told reporters that she observed some “marks” on the panels but could not determine when or how they were made.
The panels, which were removed by the National Parks Service on Jan. 22, tell the stories of the nine enslaved Africans who were held by President George Washington at the President’s House, an open-air outdoor exhibit and memorial at Independence National Historical Park that was built where Washington’s mansion originally stood.
The memorial honors the lives of Austin, Christopher Sheels, Giles, Hercules, Joe Richardson, Moll, Oney Judge, Paris and Richmond, all of whom were held at the site by Washington.
Rufe ordered the federal government on Monday to “securely store all removed panels and to mitigate any further deterioration or damage.”
During a hearing on Friday, Rufe said that she planned to inspect the panels as she considers whether NPS’s removal caused “irreparable harm” as she considers a motion for a preliminary injunction filed by the city of Philadelphia. The injunction would block the Trump administration from making any further changes to the President’s House as the lawsuit moves forward.
Rufe filed a post-hearing order on Monday, barring any further “removal and/or destruction of the President’s House” site “until further order from the court.”
Avenging the Ancestors Coalition, an advocacy group founded in 2002 by attorney Michael Coard, launched the 2002 campaign to urge the city to include a slavery memorial in the building of the President’s House. The group, which filed a motion to file an amicus brief in support of the city’s lawsuit, also participated in the inspection.
Coard told reporters on Monday that seeing the panels stored in a room against a wall was “completely disrespectful, demoralizing, defiling.”
“There were scratches and marks on several of the 34 items we saw, there was no cushioning. They were up against the wall. They were on the cement floor,” Coard said. “Had they slipped, the glass items would have fallen to the ground.”
“I can’t say, being quite candid, that there was any damage, there was no damage, but there was desecration, and for me, it’s the same thing,” Coard said.
Asked how he defines “desecration,” Coard said, “The Sixth and Market Street site where America’s first White House stood is historical holy ground. And anytime you defile holy ground, you desecrate it.”
Nurses on strike rally outside Gov. Hochul’s midtown office after marching from Grand Central Monday, Feb. 2, 2026, in Manhattan, New York. (Barry Williams/New York Daily News/Tribune News Service via Getty Images)
(NEW YORK) — The largest nurses strike in New York City history ended this weekend when the last holdouts in the 41-day labor action overwhelmingly voted to ratify a contract and agreed to return to work, officials said.
Around 4,200 members of the New York State Nurses Association (NYSNA) employed by the private New York-Presbyterian system approved on Saturday a contract that includes more than a 12% increase in salaries over the life of the three-year deal.
The nurses and management of the New York-Presbyterian system also agreed to improve enforceable safe staffing standards, boost protection for nurses from workplace violence and, for the first time ever, provide safeguards for employees against artificial intelligence.
The union previously said the hospitals had threatened to cut health care benefits for frontline nurses and roll back safe staffing standards that were won by nurses after a three-day strike in January 2023.
The labor agreement was approved after about 10,500 NYSNA nurses employed by the private Montefiore, Mount Sinai Hospital and Mount Sinai Morningside and West hospitals approved a similar contract last week. Some nurses in the system began returning to work on Saturday, officials said.
About 93% of the NYSNA nurses in the New York-Presbyterian system voted to ratify the contract, and about 7% rejected the deal, which was announced on Thursday, according to the union.
Nearly 15,000 nurses in total walked off their jobs on Jan. 12 after declaring a stalemate in negotiations with management for the private hospital systems, making it the largest nurses’ strike in New York City history.
“This is a proud moment for our union,” NYSNA President Nancy Hagans said in a statement. “We are so happy with the wins we achieved, and now the fight to enforce these contracts and hold our employers accountable begins.”
Hagans added, “NYSNA nurses showed what it means to advocate for patients, and this moment will go down in history as a win for our communities, in the fight for healthcare justice, and for the labor movement.”
In a statement Saturday evening, management of NewYork-Presbyterian confirmed the contract had been ratified by the last group of striking nurses.
“We are pleased to share that we have a new ratified contract with the New York State Nurses Association (NYSNA) and look forward to our nurses’ return to the hospital,” management of the New York-Presbyterian system said. “The new contract reflects our respect for our nurses and the critical role they play as part of our exceptional care teams.”
New York Gov. Kathy Hochul also expressed relief that the strike was finally over.
“Nurses are the backbone of our health care system. I am grateful that NYSNA has overwhelmingly ratified an agreement with New York Presbyterian recognizing the exceptionally difficult work our nurses do day in and out,” Hochul said in a statement.
The governor added, “Throughout this process, I have made clear that my top priority is protecting patients and providing continuity of care. With these agreements now ratified and nurses going back to work, I am confident we can continue to build on the progress made under this administration.”
TikTok logo is displayed on a mobile phone screen for illustration photo. Krakow, Poland. On April, 20th, 2026. (Photo by Beata Zawrzel/NurPhoto via Getty Images)
(NEW YORK) — The Trump administration is nearing an agreement with TikTok to resolve an ongoing lawsuit over alleged child privacy violations in exchange for the social media company paying $400 million that the administration plans to use to fund President Donald Trump’s Washington, D.C., “beautification” projects, sources familiar with the discussions told ABC News.
The proposed settlement would end a 2024 lawsuit brought during the Biden administration that alleged that the then-Chinese-owned social media company engaged in “massive-scale invasions of children’s privacy” by collecting extensive data from children without notifying or obtaining consent from parents.
While sources say the administration and TikTok are finalizing the terms of the settlement, it must still be approved by a vote of the TikTok board, which is expected to take place as soon as Friday.
As part of the proposed settlement terms, which are not expected to include an admission of wrongdoing, TikTok would agree to pay the U.S. government $400 million, sources familiar with the matter told ABC News — money the administration intends to use for some of the ongoing “beautification” projects in the nation’s capital, the sources said.
While the proposed settlement is not expected to detail specific projects the money would support, the funds are expected to be directed to either the Department of Interior, the Department of Commerce, or both, sources familiar with the discussions said. Officials in the White House have had weekslong discussions about whether they could legally use the money to pay for Trump’s proposed massive 250-foot triumphal arch near Arlington National Cemetery, the sources said.
On Thursday evening, President Trump personally traveled down to the National Mall to tout his administration’s “beautification” projects around the nation’s capital, telling reporters his administration is “working on some other jobs” and saying he was most excited about the triumphal arch, which he said would break ground “very soon.”
While the Department of Justice regularly reaches settlements with private companies accused of wrongdoing, the proposed TikTok settlement marks a departure from the practice of using the settlement funds to resolve the alleged wrongdoing or compensate victims.
The Department of Justice alleged that millions of children under the age of 13 were subjected to extensive data collection and excessive content meant for adults, but the proposed settlement funds are set to directly support Trump’s efforts to improve the appearance of the nation’s capital.
The White House referred questions on the matter to the Justice Department, which declined to comment. TikTok did not respond to a request for comment from ABC News.
The $400 million agreement would come as the Trump administration attempts to cut funding from the National Park Service while surging more than $10 billion in their proposed 2027 budget to form a “Presidential Capital Stewardship Program.” According to the Trump administration’s proposed budget, the president hopes to “coordinate, plan, and execute targeted, priority construction and beautification projects” throughout the capital to make “Washington, D.C. — a once-great city –safe, clean, and beautiful again.”
Further complicating the matter is President Trump’s direct role in helping to create the business venture that will pay out hundreds of millions for his D.C. projects, raising possible ethical concerns about his personal interest in the use of the settlement funds.
‘I am so happy to have helped in saving TikTok!’
Since taking office last year, Trump has fashioned an unprecedented relationship with TikTok after the company was banned from operating unless it was sold to a U.S. owner. When the social media app briefly went dark in January 2025, Trump, on his first day in office, signed an executive order that allowed the company to continue operating in the United States, essentially vowing not to enforce the ban while negotiations over a potential sale continued.
Following months of negotiations, TikTok earlier this year finalized a $14 billion deal creating an American venture — partially owned by Trump ally Larry Ellison’s database software company Oracle, private equity firm Silver Lake, Emirati investment firm MGX, and others — to address national security concerns stemming from TikTok’s ties to Beijing. TikTok’s Chinese parent company, ByteDance, still retains a minority stake in the American version of TikTok, which licenses its algorithm from ByteDance.
“I am so happy to have helped in saving TikTok! It will now be owned by a group of Great American Patriots and Investors, the Biggest in the World, and will be an important Voice,” Trump said in a social media post in January before thanking Chinese President Xi Jinping “for working with us and, ultimately, approving the Deal.”
‘Massive-scale invasions of children’s privacy’
The 2024 lawsuit that the Biden administration’s Department of Justice brought against TikTok and ByteDance, which followed a referral from the Federal Trade Commission, alleged that the social media company violated the Children’s Online Privacy Protection Act by allowing children under the age of 13 to create and use TikTok accounts without their parents’ consent, and collected “extensive data from those children.”
“By adhering to these deficient policies, Defendants actively avoid deleting the accounts of users they know to be children,” the complaint alleged. “Instead, Defendants continue collecting these children’s personal information, showing them videos not intended for children, serving them ads and generating revenue from such ads, and allowing adults to directly communicate with them through TikTok.”
TikTok pushed back against the claims, arguing they were “going above and beyond” federal law requirements, while pointing the finger at children for figuring out how to “sign up for TikTok in contravention of the company’s policies.” The complaint appears to have been stalled in pre-trial litigation — with TikTok yet to file a motion to dismiss the case — and the judge overseeing the matter recently set a trial for May 2027.
In the past, the Trump administration has been critical of settlements that do not directly compensate victims of wrongdoing. During Trump’s first term, former Attorney General Jeff Sessions banned settlements that resulted in payments to non-governmental, third parties that were not directly harmed by the conduct. Former Attorney General Pam Bondi reinstated a similar policy in 2025 banning improper third party settlements.
“Settlements, including civil settlement agreements, deferred prosecution agreements, non-prosecution agreements, and plea agreements, are a useful tool for Department attorneys, and should be used, first and foremost, to compensate victims, redress harm, or punish and deter unlawful conduct,” Bondi wrote in a Justice Department memo.
Making Washington ‘safe, clean, and beautiful again’
Over the last year, the Trump administration has prioritized carrying out “beautification” projects such as the extensive renovation of the White House East Wing, the planned arch near Arlington, the resurfacing of the Lincoln Memorial reflecting pool, and other projects to upgrade local infrastructure and parks.
Beyond the $400 million from the TikTok settlement, the Trump administration’s proposed 2027 budget includes $10 billion for a “Presidential Capital Stewardship Program” to create a fund within the National Park Service to improve buildings and parks in and around D.C.
“As the capital of the greatest Nation in the history of the world, Washington, D.C. should showcase beautiful, clean, and safe public spaces. However, many historic park features and public-facing infrastructure throughout the city show signs of decay, years of heavy public use, and inadequate maintenance,” the administration said in its proposed 2027 budget.
While details about the massive $10 billion fund are sparse, the Department of the Interior’s 2027 budget says the money would be used to “rehabilitate historic buildings and landscapes, and enhance architectural grandeur so that Americans can once again be proud of their capital.”
The size of Trump’s D.C. fund would dwarf the operating budget of the National Park Service, which the Trump administration seeks to cut by more than a billion dollars to a total to $2.2 billion. The Trump administration’s 2027 budget also would reduce staffing in the National Park Service — which manages more than 400 sites including 63 national parks — by approximately 3,000 employees.
When pressed about the $10 billion beautification fund, Interior Secretary Doug Burgum told lawmakers in April that the money would be used for “deferred maintenance” on existing facilities.
“D.C. is like a state. I mean it’s not like [the fund is only for] the National Mall — it’s for the greater capital region,” Burgum said. “I believe that if we got together, we could come back and go. ‘That number is not high enough.'”
