President Donald Trump is facing a firestorm of criticism from Democratic lawmakers over reports that his administration may settle his lawsuit against the IRS with a $1.7 billion payout — a deal they say amounts to using public money to reward political allies.

Sen. Ron Wyden (D-Ore.) didn't mince words, calling the potential settlement "among the most corrupt acts in American political history," according to CNBC. "This lawsuit has never been anything more than a shakedown of the American people by a crook president and his crook lawyers," Wyden said.

The lawsuit stems from the 2019 disclosure of Trump's tax returns, which he claims was a violation of his privacy. But the reported settlement goes beyond just compensation for Trump. According to reports, discussions include creating a fund for individuals who say they were unfairly targeted by the Joe Biden administration, along with a commission that could hand out financial awards.

Sen. Chris Van Hollen (D-Md.) accused Trump of dropping a "bogus lawsuit" in exchange for a taxpayer-funded political payout. Rep. Jamie Raskin (D-Md.) described the arrangement as "a massive and unprecedented presidential plunder of the American people." Sen. Elizabeth Warren (D-Mass.) previously said that "Trump thinks the U.S. Treasury is his personal piggy bank."

The legal foundation of the lawsuit is also shaky. In April, U.S. District Judge Kathleen Williams raised constitutional concerns, noting that Trump, as the sitting president, is effectively suing agencies under his own executive authority. She ordered both parties to clarify whether the case qualifies as a legitimate legal dispute before a May 20 deadline.

With that deadline looming, the reported settlement talks have only intensified the political firestorm. Democrats are framing the deal as an unprecedented abuse of power, while the White House has yet to comment on the specifics.