Top Treasury lawyer resigns as $1.8B settlement fund unveiled

Key insight: The Treasury's general counsel resigned the same day as the Department of Justice said it would open a $1.8 billion fund to "anyone" seeking restitution for "lawfare,"

Expert quote: "As General Counsel, Brian Morrissey has served the United States Treasury with both honor and integrity. We wish him all the best in his next endeavors." — Treasury Spokesperson 

Forward look: Lawmakers have raised concerns with the administration over fears the fund could be a "slush fund" to compensate Trump allies including January 6 rioters.

The Treasury Department's top lawyer, Brian Morrissey, resigned Monday, the same day the Justice Department announced a $1.8 billion "Anti-Weaponization Fund" as part of a settlement between Donald Trump and the Internal Revenue Service over the leak of his tax returns.

"As General Counsel, Brian Morrissey has served the United States Treasury with both honor and integrity," a Treasury spokesperson said. "We wish him all the best in his next endeavors." 

According to the Treasury Department, Morrissey — who was appointed by President Donald Trump in February 2025 — was a partner at Sidley Austin LLP and held senior roles at both the Treasury Department and the Justice Department during Trump's first term. He also clerked for Justice Clarence Thomas. Morrissey was confirmed by the Senate in a party-line vote, with no Democratic senators supporting his nomination. 

The fund, which "will have the power to issue formal apologies and monetary relief owed to claimants," according to the DOJ, has proven controversial. Democrats have raised concerns that the commission overseeing the fund could ultimately compensate Trump allies or Jan. 6 defendants, including members of extremist groups who assaulted police during the attack on the Capitol. 

When pressed Tuesday by Sen. Chris Coons, D-Del., on whether applicants that participated in storming the capitol which resulted in the death of a police officer, Acting Attorney General Todd Blanche declined to rule it out.

"I am not committing to anything beyond the settlement agreement itself," Blanche said at the Senate Appropriations subcommittee hearing. "Anybody can apply. The commissioners will set rules, I'm sure. That's not for me to set."

"I would hope you would make a rule that anyone convicted of assaulting a police officer, of a violent crime is simply not eligible, they should not apply," Sen. Chris Van Hollen, D-Md., said at the hearing.

The DOJ has framed the fund as a way of compensating those who have been singled out by the government for what they call "lawfare," and that compensation could include formal apologies and financial restitution.  

GOP senators weigh penalties, fault for debanking

December 16, 2025 6:42 PM

By Claire Williams

"The machinery of government should never be weaponized against any American, and it is this Department's intention to make right the wrongs that were previously done while ensuring this never happens again," Blanche said in a statement Monday. "As part of this settlement, we are setting up a lawful process for victims of lawfare and weaponization to be heard and seek redress."

While Morrissey did not explicitly name the settlement and accompanying fund in his departure, his resignation came the same day as the new fund's unveiling. Morrissey swore to provide "policymakers with our best judgment on how the Department's legal authorities appropriately may be used to solve the challenges of the day while minimizing litigation and other risks," in testimony at a Senate Finance Committee nomination hearing on June 3, 2025.

"As I have learned from both sides of the table, serving in government and representing clients in the private sector, the first step to achieving compliance is ensuring that the rules of the road are clearly stated and adequately explained," He said at the time. "I pledge to this Committee that I will honor the Treasury Legal Division's proud tradition of integrity, excellence, and professionalism."