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Donald Trump and related plaintiffs sought $10 billion from the IRS and Treasury over the disclosure of Trump family tax information. On July 13, 2026, U.S. District Judge Kathleen Williams found the case had been brought for an improper purpose. September reporting says the Eleventh Circuit declined to pause sanctions against two Trump attorneys—but that stay decision does not establish that the appeals court affirmed the judge’s full finding.
Why Trump and related plaintiffs sued the IRS and Treasury
The lawsuit alleged that the IRS and Treasury Department failed to prevent a contractor from disclosing Trump family tax information. The plaintiffs sought $10 billion in damages, according to the Associated Press. That was the amount claimed in the lawsuit, not money a court awarded.
Because the defendants were federal agencies under the executive branch, the case was a suit against agencies within Trump’s administration. It was not a finding that the agencies owed the requested damages.
What the settlement agreement covered
A settlement agreement hosted by the Justice Department says the parties intended to close the lawsuit and pending agency claims effective May 18, 2026. Its scope extended beyond the tax-information disclosure, so it should not be described simply as a payment for the leak.
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| Figure | What it refers to | What it does not establish |
|---|---|---|
| $10 billion | Damages sought in the lawsuit, according to the Associated Press. | A court award or a settlement payment of that amount. |
| About $1.8 billion | A proposed fund described in reporting about the settlement. | That an appeals court approved the fund or that it is currently operative. |
The reviewed reporting does not establish the proposed fund’s current legal status following the appellate action.
Why Judge Kathleen Williams called the case improper
On July 13, 2026, Williams found that the case had been brought for an improper purpose. The Associated Press reported that she viewed the parties’ conduct as an attempt to use the court to lend legitimacy to an agreement that would benefit people and entities affiliated with the president.
That was the district judge’s finding about the purpose of the litigation and the parties’ conduct. She also referred a lawyer for possible professional discipline. A referral is not itself a final disciplinary decision.
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What the Eleventh Circuit did—and what that means
September 2026 coverage reports that the Eleventh Circuit declined to pause sanctions imposed on two Trump attorneys. That is a decision about a request to suspend sanctions while proceedings continue; it is not, by itself, a decision on the full merits of Williams’s ruling.
| Question | What the available account establishes |
|---|---|
| Did the court pause the sanctions? | No. September reporting says the Eleventh Circuit declined to pause sanctions against two attorneys. |
| Did the court affirm the full collusion or improper-purpose finding? | The reported refusal to pause sanctions does not establish that. The appellate order itself is not available in the reviewed material. |
Accordingly, it is more precise to say the appeals court refused to pause sanctions than to say it agreed with every part of the district court’s finding.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What remains unresolved
The settlement agreement states the parties’ intent to close the case and pending agency claims effective May 18, 2026. The reviewed sources do not establish the current legal status of every settlement term or the proposed fund after the reported appellate action. Nor does the available account of the stay decision answer the full merits of any appeal.
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