Trump may settle his lawsuit against IRS for $1.7bn fund to compensate allies

In unprecedented self-dealing maneuver, billions of taxpayer dollars could be paid to US president and his allies

There is growing concern Donald Trump's massive $10bn lawsuit against the Internal Revenue Service may soon be settled by his own administration - an unprecedented, self-dealing maneuver for a US president, in which billions of taxpayer dollars could be transferred to the president or his allies.

Trump may agree to drop his lawsuit in exchange for the launch of a $1.7bn fund to compensate people he says were wrongfully targeted by the Biden administration, according to reports by ABC News and the New York Times.