Treasury Department General Counsel Brian Morrissey resigned Monday, just hours after the Trump administration announced a controversial $1.8 billion “anti-weaponization fund,” according to a report from The New York Times.

The report said Morrissey stepped down seven months after being confirmed by the Senate. The resignation came as the Justice Department finalized an agreement tied to President Donald Trump’s lawsuit against the Internal Revenue Service (IRS).

The proposed fund would compensate people who claim they were improperly targeted by the Biden administration. Potential recipients could reportedly include Trump allies and some individuals connected to the Jan. 6 Capitol riot.

The Treasury Department would deposit roughly $1.776 billion into the account using money from the federal Judgment Fund, according to the report.

A Treasury spokesperson told The New York Times that Morrissey served “with both honor and integrity.”

The department did not immediately respond to Benzinga‘s request for comment.

Legal Questions

The settlement stems from Trump’s lawsuit accusing the IRS of failing to prevent the leak of his confidential tax information during his first term.

Trump agreed to drop the lawsuit on Monday after a judge questioned whether a sitting president could legally sue agencies operating under his own administration.

Earlier reports indicated the proposed arrangement could also include a public apology from the IRS.

Democratic Backlash

Democratic lawmakers have sharply criticized the proposed compensation structure in recent days.

Rep. Jamie Raskin (D-Md.) previously described the arrangement as an unconstitutional “political slush fund,” while Sen. Ron Wyden (D-Ore.) called it “among the most corrupt acts in American political history.”

Sen. Elizabeth Warren (D-Mass.) also accused Trump of treating the Treasury as a “personal piggy bank.”

Details surrounding the compensation fund and payout process have not been fully disclosed.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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