Treasury Sec Admits Americans Are on the Hook for Trump’s $10B Lawsuit
Donald Trump’s frivolous $10 billion lawsuit against the IRS over his leaked tax returns, if he were to win or get a settlement, would be paid entirely by U.S. taxpayers.
That’s what Treasury Secretary Scott Bessent said during a Senate Committee on Banking, Housing, and Urban Affairs hearing Thursday. Democratic Senator Ruben Gallego asked Bessent, who is also acting director of the IRS: “Where would that be cut from? Let’s say, for some reason, he actually wins that lawsuit. Where would that $10 billion come from?”
Bessent had trouble getting the words out.
“Um, it would come from—” Bessent began.
“Process-wise; I’m not asking your opinion whether it’s right or wrong,” Gallego interjected.
“It would come from Treasury,” Bessent said. Gallego pressed him on if those funds would come from the U.S. Treasury’s general fund, to which Bessent said yes, “the Treasury’s general account.”
“So, taxpayers?” Gallego asked. Bessent said yes, adding, “part of the 44,000 taxpayers whose returns were leaked,” referring to how the same person who leaked Trump’s returns also leaked those of thousands of other wealthy people.
“They’re not suing,” Gallego replied.
GALLEGO: Let's say Trump wins that lawsuit. Where would that $10 billion come from?
— Aaron Rupar (@atrupar) February 5, 2026
BESSENT: It would come from Treasury
GALLEGO: So, taxpayers?
BESSENT: Yes. Part of the 44,000 whose returns were leaked
GALLEGO: They're not suing pic.twitter.com/5igOkldZwK
The whole conversation shows the absurdity of Trump becoming the first sitting president to sue the executive branch and demand that American taxpayers pay him for his taxes being leaked. The leak came from one IRS employee and wasn’t directed by the agency, and that employee was convicted and sent to federal prison.
Even then, the leak took place during Trump’s first term under a director he appointed, and he’d have a hard time proving damages in court. Trump’s net worth has nearly tripled to $6.4 billion since his taxes were disclosed in September 2020.
It looks a lot like a corrupt president is trying to pay himself billions of dollars—two-thirds of the IRS’s proposed budget—to soothe his ego.