Trump Seeks Billions from U.S. Government, Raising Conflict of Interest Concerns
Of all the ways President Donald Trump has pushed the boundaries of executive power, one stands out to lawyers and watchdogs: the president’s pursuit of billions of dollars from the government he leads. Trump has filed multiple claims arguing he’s been harmed by Justice Department investigations and the leak of his tax returns. Now, his political appointees are tasked with determining whether to settle these claims—and for how much taxpayer money.
“There is a glaring conflict of interest with Trump being on both sides of the claim,” said Edward Whelan, a former lawyer at the Justice Department and a political conservative who once clerked for the late Justice Antonin Scalia. “It is outrageous that he and those answering to him would be deciding how the government responds to these extravagant claims.”
Unfinished Business
For Trump, filing lawsuits, even those considered frivolous or unlikely to succeed, has long been a standard practice—a way of communicating displeasure. A White House official, speaking on background, said these claims represent “unfinished business” for the president.
This sentiment was evident in December when, during a speech in North Carolina, Trump unexpectedly discussed the 2022 FBI search of his Mar-a-Lago resort. “I had these animals trying to attack me at Mar-a-Lago,” he said. “They went into my wife’s closet.”
Federal agents seized classified documents from a bathroom, a ballroom, and an office as part of a court-approved investigation into the unlawful retention of government secrets and alleged obstruction of justice. Trump viewed the search as an attack and filed a claim with the Department of Justice seeking $230 million over the Florida operation and an earlier probe into his campaign’s ties to Russia.
“And they do say that, you know, it’s never been a case like this,” Trump said at a rally in December, mimicking a newscaster. “‘Donald Trump sues the United States of America. Donald Trump becomes president. And now Donald Trump has to settle the suit.’”
The claims were initially filed although Trump was out of office. The Russia investigation concluded without charges against him. After winning the 2024 election, the Justice Department abandoned its appeal of the classified documents case in Florida. This placed Trump in the unusual position of being on both sides of the dispute.
“But isn’t that a strange position to be in,” Trump remarked at the rally. “I’ve gotta make a deal. I negotiate with myself.”
“An Order of Magnitude Greater”
The Justice Department has a process for evaluating claims of harm caused by the federal government. Typically, these claims are assessed by career lawyers and rarely involve high-profile criminal investigations.
“Some of them are run of the mill, right?” said Rupa Bhattacharyya, a former Justice Department lawyer who evaluated these types of allegations. “Postal vehicles get into traffic accidents, VA doctors have malpractice claims brought against them, people slip and fall in federal buildings.”
Even in serious cases, such as those involving injuries from the September 11, 2001, terrorist attacks, Bhattacharyya said payouts rarely exceeded $10 million.
Trump is seeking significantly more—$230 million for the Justice Department investigations against him, “an order of magnitude greater than any administrative settlement the department has ever agreed to in a Federal Tort Claims Act case,” according to Bhattacharyya.
Typically, the Justice Department would defend the work of its career prosecutors and FBI agents in court, particularly given the judicial approval of the Mar-a-Lago search. The final decision on whether to settle, however, rests with top officials at the Justice Department.
This adds another layer of complexity, as Attorney General Pam Bondi and Deputy Attorney General Todd Blanche previously served as Trump’s personal attorneys. Stanley Woodward, the third-in-command at Justice, represented Trump’s valet, who was charged as an alleged co-conspirator in the Mar-a-Lago case.
“The fear that many have is that the Department of Justice will simply fold and ask Donald Trump the individual how much money Donald Trump’s administration should funnel to him,” said Whelan.
In an interview with NBC’s Tom Llamas, Trump suggested he would be the final decider, stating, “Well, what I would do, tell them to pay me but I’ll grant 100% of the money to charity.”
A $10 Billion Lawsuit
Trump also filed a $10 billion lawsuit against the federal government last month over the 2019 leak of his tax returns by an IRS contractor. Experts in tax law have raised concerns about the case, citing the potential expiration of the statute of limitations and the fact that the leak occurred during Trump’s first term, meaning he is suing the government for actions taken while he was in charge. The contractor responsible for the leak is currently serving a prison sentence.
Congressional Democrats questioned top administration officials about the IRS case, with Treasury Secretary Scott Bessent deferring to the Justice Department, which is defending the Treasury and IRS. Attorney General Bondi declined to comment on pending litigation during a Senate hearing.
A Justice Department spokesperson stated that all officials follow the guidance of career ethics officials.
However, Bondi fired the top in-house ethics lawyer at the Justice Department last summer after the lawyer raised questions about gifts and tickets she had received.
Taxpayer-Funded Settlement
Whelan suggested pausing the IRS case until Trump is no longer president. If a settlement is reached, the funds would reach from the judgment fund, a taxpayer-funded pot of money.
“The American people are on the hook for these claims if liability is assessed against the government,” said Bhattacharyya.
A spokesman for Trump’s legal team stated that the IRS “wrongly allowed a rogue, politically-motivated employee to leak private and confidential information” and that Trump “continues to hold those who wrong America and Americans accountable.”
When pressed on Air Force One about the fairness of asking taxpayers to fund such a large settlement, Trump dismissed concerns, insisting any winnings would be donated to charity. “They give money to charity anyway,” Trump said. “They give $40 billion a year to charity, our government.” The White House did not respond to questions about the source of this figure or which charities would receive the funds.
At a time when Americans are concerned about the cost of living, the prospect of the president receiving a substantial payout from the government, even if donated to charity, may not be well-received by voters.