Donald Trump
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President Donald Trump has sparked a constitutional firestorm after claiming he has the unilateral authority to settle multi-billion-dollar lawsuits against his own administration and direct the proceeds to 'very good charities.'

Speaking to reporters aboard Air Force One on Saturday, 31 January 2026, Trump suggested he could bypass standard legal settlements to personally allocate up to $10 billion in taxpayer funds. The move, which legal experts brand a 'blatant conflict of interest,' comes as Trump pursues massive claims against the IRS and Department of Justice (DOJ) over the 2022 Mar-a-Lago search and the 2024 leak of his private tax records.

The president, who is pursuing damages totalling £9.2bn ($11.5 billion) across multiple cases against the US government, described himself as simultaneously a plaintiff and a defendant — and suggested he could simply 'work out some kind of a settlement' with himself.

The remarks, reported by The Daily Beast, raise immediate questions about constitutional limits and conflicts of interest.

Trump's Multi-Billion Dollar Lawsuits

Trump has launched multiple lawsuits against the US government in recent years, both as a private citizen and as president. He is seeking damages totalling £9.2bn ($11.5bn) across cases, including claims against the Internal Revenue Service and Treasury Department for allegedly mishandling his personal financial information.

While Trump proposes directing money to charitable initiatives, it remains unclear whether any courts would permit him to influence settlements in such a personal manner.

Charity as a Justification

Trump insisted that any settlement money would go to charities rather than himself, framing the move as philanthropic. 'We can make it a sensational amount, and nobody would care because it's going to go to numerous, very good charities', he said. It's worth noting, however, that the president's own foundation, the Donald J. Trump Foundation, ceased operations in 2018, and he was ordered to pay £1.6m ($2m) for misusing its funds.

Potential alternatives for donations could include initiatives tied to his private accounts or to public projects, such as the White House Restoration Fund, a scheme linked to the construction of the East Wing Ballroom, which is currently under renovation at an estimated cost of £320m ($400m).

The IRS and Mar-a-Lago Cases

Trump's legal actions include disputes with the Department of Justice over the 2022 FBI search of his Mar-a-Lago estate, where classified documents were seized, as well as lawsuits concerning the 2016 presidential campaign investigation and the alleged mishandling of his tax returns. In each instance, Trump is seeking damages of roughly £92m ($115m) for legal costs and losses.

Trump has also filed claims on behalf of his sons, Eric and Donald Jr., and the Trump Organisation, alleging that the IRS failed to safeguard sensitive financial data following a leak. The leaked reports indicate that he paid only £600 ($750) in federal taxes in 2016 and 2017, with several years showing no federal income tax payments

He described the potential £8bn ($10bn) settlement as an opportunity to exercise personal discretion over federal funds, claiming the process could be 'beneficial' if applied to charitable works.

Trump's 2026 Litigation Roadmap

Case TargetAlleged MisconductDamages Sought
IRS & TreasuryLeak of 2016/2017 tax returns ($750 payment data).$10 Billion
Dept. of Justice2022 FBI Mar-a-Lago raid & 'Russian Collusion' probe.$230 Million
The BBCDefamation over 'Jan 6th' documentary editing.$10 Billion
NY TimesReporting on personal financial records.$15 Billion

Can Trump Write a Check for Himself?

However, government money is not personal money. Any damages awarded in a lawsuit against the US government belong to the plaintiff as determined by law, not the person managing the case personally. Even if Trump is a plaintiff, he cannot unilaterally take the money; it must go through proper channels.

Federal courts control approvals of settlements with the government. Any allocation of funds must be approved by a judge or an authorised department, not made self-decidedly.

Trump's claim that he could 'settle with himself' creates a clear conflict of interest. A court would almost certainly reject a plan that would allow him to personally direct public funds without oversight.

Besides, even if the money is 'donated to charity', it must still be routed legally. He cannot just write a check in the US government's name to a charity of his choosing without legal approval. Trump can propose settlements or charity allocations in court filings, but he cannot legally write a blank cheque to himself from government funds. Any attempt to do so would be illegal.