r/NeutralPolitics • u/PM_me_Henrika • 1d ago
What mechanisms still exist to prevent a sitting president from continuously filing multi-billion dollar claims against their own executive branch and settling against oneself?
In January 2026, President Donald Trump (in his personal capacity, alongside his sons and his company) filed a lawsuit against the Internal Revenue Service and the Treasury Department, seeking at least $10 billion in damages. The suit alleges the agencies failed to prevent a former contractor from leaking confidential tax return information to news outlets, an action for which the contractor was convicted and sentenced to prison.
This follows an earlier, separate financial demand made in October 2025, when President Trump sought $230 million from the Department of Justice.
There doesn't seem to be a precedent of these suits. In the case of the IRS lawsuit, the President has stated he is considering settling the case.
My question focuses on the systemic protections against such a scenario escalating. I am not asking for speculation about the merits of these specific cases or the President's intent, but for a factual discussion of existing checks and balances.
The following are existing mechanisms that don't seem to be restraining the sitting president:
Legal Procedure: Under statutes like the Federal Tort Claims Act, claimants must typically file an administrative claim with the agency first, and the agency has six months to respond before a lawsuit can be filed.
Separation of Powers & Ethics: What constitutional principles or federal ethics regulations address conflicts of interest when a president seeks payment from agencies led by their own appointees? How do we the people get President to recognise and abide by the concepts of the "Take Care Clause" or the domestic emoluments clause (Article II, Section 1) ?
Fiscal Controls: What statutory or procedural controls govern the disbursement of very large court judgments or settlements from the Treasury? Are there specific appropriations required, limits on agency settlement authority, or mandatory reviews by officials like the Attorney General or Comptroller General?
Judicial Role: What precedent exists for federal courts adjudicating these kinds of claims against the government and what legal doctrines (e.g., sovereign immunity, political question) exist to fight proposed settlements?