On Saturday, Sen. Adam Schiff (D-Calif) criticized President Donald Trump after a report alleged a possible deal involving a $10 billion IRS lawsuit withdrawal in exchange for a $1.7 billion taxpayer-funded compensation plan for Trump allies.

IRS Lawsuit Deal Sparks Political Firestorm

Schiff posted on X, writing, "First, Donald Trump sues his own IRS to enrich himself."

He added, "Now he wants to use billions in taxpayer funds to compensate his allies, including thousands charged for the January 6 insurrection."

Schiff continued, "This is easily the most corrupt regime in U.S. history."

The White House and IRS did not immediately respond to requests for comment.

Democrats Slam Trump Over $1.7 Billion IRS Settlement Plan

Sen. Patty Murray accused Trump of "blatant corruption," alleging he sought to use taxpayer money to benefit his allies and urging Congress to oppose what she called a "corrupt heist."

Rep. Greg Casar also criticized the reported plan, saying Trump was seeking $1.7 billion in taxpayer funds for Jan. 6 rioters and political allies while Americans face health care challenges, calling him "the most corrupt president in history."

Sen. Ron Wyden (D-Ore.) separately condemned reports of a potential $1.7 billion settlement tied to Trump's IRS lawsuit, calling it "among the most corrupt acts in American political history."

The proposal reportedly involved compensation linked to claims of political targeting following Trump's lawsuit over the 2019 disclosure of his tax returns.

Trump IRS Lawsuit Report

President Trump was expected to drop a $10 billion lawsuit against the Internal Revenue Service in a reported arrangement that included a proposed $1.7 billion compensation fund for allies who claimed they were targeted by the Biden administration.

The fund could have included individuals charged in connection with the Jan. 6 Capitol attack and entities linked to Trump.

The deal was still being finalized and had not been officially announced at the time of the report.