Donald Trump's lead attorney at the Treasury Department stepped down hours after the administration unveiled a $1.8 billion fund to pay the President's political allies.
Trump settled a $10 billion defamation lawsuit against the IRS in exchange for the creation of a fund to funnel taxpayer money to victims of 'lawfare', including January 6 rioters. Democrats are calling it the most corrupt presidential act in history.
Brian Morrissey, who was confirmed as the Treasury's general counsel just seven months ago, tendered his resignation within hours of the fund's creation.
His departure appears to coincide with Trump's settlement. In his resignation letter, however, Morrissey thanked the President and Treasury Secretary Scott Bessent, saying he was grateful to have worked in the administration, according to the New York Times.
Five commissioners will be appointed to oversee the fund and disburse payments to those seeking redress for alleged political persecution under Biden.
Acting Attorney General Todd Blanche, Trump's former attorney who defended him during his criminal trials, will be responsible for appointing members to the commission. Trump has authority to remove any commissioner.
The $1.776 billion fund will have the power to issue formal apologies and monetary relief owed to claimants. While Trump is barred from directly receiving payments from the fund, entities associated with him are not explicitly prohibited from filing additional ones.
The President, his sons Don Jr and Eric, and the Trump Organization initially filed suit against the Treasury and IRS in the Southern District of Florida federal court after the leak of their tax returns in 2019.
Trump's lead attorney at the Treasury Department stepped down hours after the administration unveiled a $1.8 billion fund to pay the President's political allies
'QAnon Shaman' Jacob Chansley, right with fur hat, during the Capitol riot in Washington, Jan. 6, 2021
Blanche described the fund as 'a lawful process for victims of lawfare and weaponization to be heard and seek redress'
While speaking to lawmakers on Capitol Hill on Tuesday, Blanche defended the fund by stating it would not be limited to Republicans or to those investigated by the Biden DOJ. The attorney general said all payouts will be a matter of public record.
Blanche described the fund as 'a lawful process for victims of lawfare and weaponization to be heard and seek redress.'
Democratic Senator Chris Hollen pressed Blanche on whether Capitol rioters who assaulted police officers would be eligible for payment.
'Anybody in this country is eligible to apply if they believe they were a victim of weaponization,' Blanche replied.
It was not immediately clear who precisely will stand to benefit from the fund but its creation reflects Trump's long-running claims that the Justice Department during the Biden administration was weaponized against him.
He has cited as proof the since-dismissed criminal charges he faced between his first and second terms of conspiring to overturn the results of the 2020 presidential election and retaining classified documents at Mar-a-Lago.
Several Trump aides were also prosecuted, as were hundreds of MAGA supporters who stormed the Capitol on January 6, 2021.
The settlement drew immediate fury from Democrats, among them Senate Finance Committee member Ron Wyden, who said it represented a brazen new level of corruption.
Senate Majority Leader John Thune expressed skepticism regarding the fund, stating that he was 'Not a big fan.'
'And I’m not sure exactly how they intend to use it. I don’t see a purpose for that,' Thune told reporters.