Acting Attorney General Todd Blanche avoided a direct question about whether the Justice Department would take steps to protect taxpayer money from any payout in President Donald Trump’s $10 billion lawsuit against the IRS.
The exchange came during a DOJ news conference on Tuesday, April 21, after a reporter asked Blanche how the administration planned to shield public funds from a possible award or settlement in the case Trump filed against his own administration’s tax agency.
Blanche did not give a clear answer; instead, he said it was not appropriate for him to talk about an ongoing investigation, especially at this early stage.
When asked about how he is going to handle the situation where President Trump is pushing for personal money from the government, and at the same time, the president remains his boss, the AG said similar cases have already been handled in the past.
“The DOJ handles complicated decisions involving those types of issues every day, all day. Not just this DOJ, every DOJ handles issues like that,” he said.
However, he offered no details on steps to block taxpayer dollars from going to Trump if the case ends with a payment.
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Trump and his two eldest sons, Donald Trump Jr. and Eric Trump, along with the Trump Organization, filed the lawsuit in federal court in Miami in late January. The suit accuses the IRS and Treasury Department of failing to stop a 2019 leak of the family’s tax returns.
The leak came from Charles Littlejohn, a former IRS contractor. He pleaded guilty in 2023 to stealing and sharing the information with news outlets.
The disclosures showed Trump paid very little in federal income taxes in some years and reported large losses. Littlejohn is now serving a five-year prison sentence.
Trump’s lawsuit claims the leak caused reputational harm, embarrassment, and damage to their business interests. It seeks at least $10 billion in damages from the federal government.
Lawyers for Trump and the IRS have been in talks about a possible settlement. Court filings show the parties asked for a 90-day pause in the case to allow those discussions to continue.
The situation has created an unusual setup because Trump, as president, oversees the executive branch agencies he is suing.
Any large settlement would likely need approval from senior Justice Department officials and could draw from taxpayer funds.
Todd Blanche as Trump’s personal lawyer
Blanche previously worked as one of Trump’s personal defense lawyers before joining the administration. He now serves as acting attorney general and has authority over major DOJ decisions, including settlements above certain amounts.
At the news conference, Blanche focused his comments on having seen the DOJ handle similar cases rather than addressing the money question head-on. He said the department wants to make sure “that type of thing never happens again.”
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The case is still in its early stages, with no trial date set, and it remains unclear whether the settlement talks will result in an agreement and how much money might be involved.
Trump has said in the past that he might donate any winnings to charity, but no formal pledge has been made in the court filings.
The lawsuit stems from leaks that first appeared in stories by The New York Times and ProPublica. Those reports broke with longstanding tradition because Trump had refused to voluntarily release his tax returns while running for and serving as president.
Littlejohn also leaked tax information on thousands of other wealthy Americans, but Trump’s suit focuses only on the harm to him and his family.
As acting attorney general, Blanche runs the day-to-day operations of the Justice Department. His refusal to answer the taxpayer-protection question directly left the issue open.
The case now sits as both sides discuss settlement, while the president’s own department weighs its next moves. Taxpayers could end up footing the bill if a deal is reached and approved.
