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Treasury Department Official Calls It Quits Following Massive IRS Settlement

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President Trump’s Treasury Department lost one of its top legal officials just as the administration unveiled a massive new settlement fund tied to allegations of political targeting and government “weaponization.”

Brian Morrissey, the Treasury Department’s chief legal officer, resigned Monday following the Justice Department’s announcement of a nearly $1.8 billion compensation fund that could provide payouts to individuals who claim they were improperly targeted under the Biden administration.

Morrissey, whom Trump nominated to serve as Treasury general counsel last year, had held the role for roughly eight months. Before becoming general counsel, he served as the Department’s principal deputy general counsel and previously clerked for Supreme Court Justice Clarence Thomas.

A Treasury spokesperson confirmed his departure on Tuesday.

“As General Counsel, Brian Morrissey has served the United States Treasury with both honor and integrity. We wish him all the best in his next endeavors,” the spokesperson said in a statement to The Hill.

His departure came immediately after the Justice Department announced the creation of what officials are calling an “anti-weaponization fund,” a program intended to compensate individuals who believe they were harmed by alleged politically motivated actions taken by the federal government.

According to reporting from The New York Times, Morrissey expressed gratitude toward President Trump and Treasury Secretary Scott Bessent in his resignation letter but did not publicly criticize the initiative.

The newly announced fund stems from a broader settlement involving Trump’s legal fight against the Internal Revenue Service.

The dispute centered on the highly publicized release of Trump’s tax records after years of legal and political battles over whether Congress could obtain and disclose them. Trump and his allies argued that federal agencies and political opponents repeatedly used government institutions to target him and his supporters.

Justice Department officials said approximately $1.776 billion will be placed into a Treasury-managed account that will oversee settlements and compensation claims from individuals alleging they were subjected to government misconduct or politically motivated investigations.

The administration said a board appointed by Acting Attorney General Todd Blanche will manage the claims process.

“The machinery of government should never be weaponized against any American, and it is this Department’s intention to make right the wrongs that were previously done while ensuring this never happens again,” Blanche said in a statement announcing the fund.

“As part of this settlement, we are setting up a lawful process for victims of lawfare and weaponization to be heard and seek redress,” he added.

The Justice Department has not yet released specific eligibility requirements for compensation, leaving major questions unanswered about who could ultimately qualify.

Among those closely watching the program are some Jan. 6 defendants and Capitol riot participants who have filed lawsuits alleging prosecutorial misconduct, improper investigations, or violations of their constitutional rights.

Critics are already expected to challenge both the legal authority behind the fund and the scope of potential payouts, while supporters argue the initiative represents an effort to address what they view as years of politically driven government overreach.