Last Updated: August 6, 2026 
President Donald Trump and other plaintiffs have appealed a federal judge’s order concerning their $10 billion civil lawsuit against the Internal Revenue Service and the U.S. Department of the Treasury.
A notice of appeal was filed on July 31 in the U.S. District Court for the Southern District of Florida. The appeal will be considered by the U.S. Court of Appeals for the Eleventh Circuit. The appellants include Trump, Donald Trump Jr., Eric Trump, the Trump Organization and attorneys Alejandro Brito and Daniel Epstein.
The lawsuit was filed on January 29, 2026, after confidential tax information connected to Trump and related parties was accessed and disclosed by former IRS contractor Charles Littlejohn. The plaintiffs alleged that the IRS and Treasury failed to adequately protect the information and sought at least $10 billion in damages.
The $10 billion figure represents damages requested in the complaint. It was not an amount awarded to Trump or paid under the later agreement.
Littlejohn’s conduct was handled in a separate criminal case. He was charged in September 2023 and pleaded guilty to one count of disclosing tax-return information without authorization. He was sentenced on January 29, 2024, to five years in federal prison.
Judge Issues Sanctions Order
The plaintiffs dismissed the IRS lawsuit with prejudice on May 18 as part of an agreement with the Justice Department. Under that agreement, the named plaintiffs were to receive a formal apology but no monetary damages. The agreement also proposed creating a $1.776 billion Anti-Weaponization Fund for claims from other people alleging improper government targeting.
On July 13, U.S. District Judge Kathleen Williams ruled that the opposing parties were not genuinely adverse and found that the litigation had been pursued in bad faith and for an improper purpose.
The judge restricted the parties from using the agreement as evidence of a settlement in future official proceedings. She also referred attorney Alejandro Brito to the Florida Bar and imposed a one-year restriction on Daniel Epstein’s applications to appear in the Southern District of Florida. These findings and sanctions are now subject to appellate review.
DOJ Rescinds Proposed Fund
On August 2, Acting Attorney General Todd Blanche formally rescinded the order establishing the Anti-Weaponization Fund.
The Justice Department said the fund never became operational. No members were appointed, no money was transferred, and no claims were paid. Blanche also issued clarification stating that a related tax order applied retroactively to returns filed before May 18, 2026.
Blanche announced the decision in an official post on X following discussions with members of Congress.
My team and I have met with committee members and Senators over the past several weeks and addressed any concerns or outstanding questions. We have enjoyed good faith discussions, and as a result issue the following order and update with regard to the May IRS settlement. The… pic.twitter.com/U6hs15kw2D
— Acting AG Todd Blanche (@DAGToddBlanche) August 3, 2026
The cancellation of the proposed fund does not automatically end the appeal. The Eleventh Circuit may still review the district court’s findings, sanctions and restrictions concerning the agreement.
As of August 3, 2026, the appellate court has not ruled on the merits of the appeal.
This article covers an ongoing federal civil proceeding. The district court’s findings remain subject to appellate review.
