BESSENT: IF TRUMP WINS IRS SUIT, $10B WOULD COME FROM TAXPAYERS
— NewsWire (@NewsWire_US) February 5, 2026
GALLEGO: Let's say Trump wins that lawsuit. Where would that $10 billion come from?
BESSENT: It would come from Treasury
GALLEGO: So, taxpayers?
BESSENT: Yes.
— Spencer Hakimian (@SpencerHakimian) February 5, 2026
Factcheck:
When someone sues a federal agency (like the IRS or Treasury) and wins money damages, the payout does not come from the IRS’s own budget.
It comes from a federal account called the Judgment Fund.
And the Judgment Fund is funded by general federal revenue which ultimately comes from taxpayers.
So the legal mechanism behind the claim is real.