ABC News
ABC NewsJan 1
Politics

This Week with George Stephanopoulos Full Broadcast - Sunday, May 17, 2026

47 min video5 key momentsWatch original
TL;DR

Trump administration finalizing $1.7 billion taxpayer-funded compensation fund for allies claiming victimization under Biden; critics call it unconstitutional and corrupt.

Key Insights

1

Slush fund for political alliesTrump is expected to drop his $10 billion IRS lawsuit in exchange for a $1.776 billion taxpayer-funded 'Truth and Justice Commission' to compensate political allies — including potentially January 6th rioters — without congressional approval or public disclosure of operating procedures.

2

Billion-dollar family enterpriseIn less than 18 months, Trump and his family have earned over $1 billion from overseas real estate, cryptocurrency, merchandise, and government contracts to companies owned by his sons Don Jr. and Eric.

3

Insider trading appearanceTrump bought millions in stock in companies directly involved in administration business deals — Nvidia, Palantir, Boeing, Intel — then publicly touted Palantir's 'war-fighting capabilities' weeks after purchasing shares.

4

Hollow China summitThe China summit produced no concrete deliverables on tariffs, Taiwan arms sales, or the Strait of Hormuz despite Trump calling it a historic success — trade details remain sparse and Boeing's stock dropped when China didn't confirm plane purchases.

5

Pressuring preservation lawsuitTrump is personally calling Carol Quillen, head of the National Trust for Historic Preservation, urging her to drop her lawsuit against his White House ballroom and other construction projects that require congressional approval under law.

6

Massive Arlington arch projectTrump's construction agenda includes a 250-foot arch near Arlington Cemetery — 2.5 times taller than the Lincoln Memorial — that Vietnam veterans are suing to stop because it blocks cemetery views, while the FAA reviews whether it interferes with air traffic.

Deep Dive

The $1.7 Billion Slush Fund and IRS Settlement

ABC News broke that the Department of Justice is finalizing a deal to establish a nearly $2 billion fund called the President Donald J. Trump Truth and Justice Commission, funded entirely by taxpayer money, to settle Trump's $10 billion lawsuit against the IRS. Trump filed the suit in January over his tax records leaked to the press in 2019, but now sources say he's expected to drop it in exchange for this compensation fund. According to the reporting, nearly 1,600 people charged in connection with January 6th — many convicted of assaulting police and seditious conspiracy — could potentially seek damages from the fund. The proposed commission would operate under no obligation to disclose details or operating procedures, and Trump would be allowed to remove commission members without cause. Democrats like Jamie Raskin argue this violates the 14th Amendment's insurrection clause, the Constitution's emoluments clauses, and Congressional spending power. Raskin emphasized that Congress never voted on this political slush fund and never would. Even Trump himself acknowledged the absurdity during a previous statement: "It's awfully strange to make a decision where I'm paying myself."

Trump's Business Empire While in Office

Financial disclosures reveal Trump and his family have earned well over $1 billion in the first 18 months of his second term through an expanding portfolio of revenue streams. These include overseas real estate projects, Trump Media and Technology Group (parent of Truth Social), branded merchandise ranging from Trump Bibles to sneakers, and cryptocurrency ventures where Trump and his family earned transaction fees. Don Jr. and Eric's companies have been granted tens of millions in government contracts. This week, new financial disclosures showed Trump purchased millions in stock in American companies directly involved in administration business deals, including Nvidia, the world's most valuable company, plus Palantir, Boeing, and Intel. Weeks after buying Palantir shares, Trump posted on Truth Social: "Palantir Technologies has proven to have great war-fighting capabilities and equipment." The Trump Organization claims all investment decisions are made by third-party financial institutions with sole authority, not by Trump himself. This explanation came as Democrats and critics accused the president of converting the presidency into a personal money-making operation. Raskin stated Trump's net worth has already risen from roughly $3.2 billion to over $11.6 billion during his presidency — unprecedented financial enrichment in office.

China Summit Delivers Optics, Not Substance

President Trump returned from his state visit to Beijing claiming a historic success, but the actual accomplishments remain murky. The two-day summit was full of pageantry as Trump lavished praise on Chinese President Xi Jinping, saying "You're a great leader" despite criticism that this approach undermined US negotiating leverage. Trump claimed the most significant takeaway was his personal relationship with Xi, stating "It's all about relationship" and that this relationship is "everything in deal making." However, policy progress is unclear. Trump claimed China agreed to buy American soybeans and 200 Boeing planes, but Boeing's stock dropped sharply Friday when China failed to publicly confirm the aircraft purchase, leaving investors underwhelmed. Trump said tariffs didn't come up in discussions, contradicting Chinese state media reports that a tariff deal was struck. Trade Representative Jameson Greer explained that subordinates work out tariff details before leaders meet, which is why Trump didn't discuss it. On Taiwan, Xi warned Trump not to interfere with the self-governed island, and Trump refused to commit to approving US arms sales, instead calling them "a very good negotiating chip for us." A judge had previously questioned whether Trump's lawsuit against his own government even makes sense given that he controls the defendants.

Thomas Massie's Primary Fight Against Trump's Endorsement Machine

Republican Congressman Thomas Massie faces a Tuesday primary in Kentucky where President Trump has unleashed a vengeance campaign, posting on Truth Social that Massie is "the worst congressman in history" and urging voters to "vote the bum out." This is the most expensive House primary ever, with three billionaires from outside Kentucky — including Miriam Adelson and Paul Singer — funneling millions to Massie's opponent to flip the seat. Massie claims this is fundamentally about foreign policy, stating his race is "a referendum on whether Israel gets to buy seats in Congress." He directly named the RJC, AIPAC, Miriam Adelson, and Paul Singer as part of the Israeli lobby funding his opponent. Massie says Trump's opposition actually helps his fundraising at thomasmassie.com, and he's pulling ahead in polls despite the presidential pressure. He's backed by gun organizations, right-to-life groups, and has received millions from grassroots donors — tens of thousands of contributors online. Regarding the billion-dollar White House ballroom renovation, Massie said he won't vote to fund it, noting that Adelson, who's funding his primary opponent, has already poured so much money into his race that Trump's allies "don't have enough money for the ballroom anymore from her account."

Historic Preservation Under Fire: Ballroom, Arch, and Renovations

Carol Quillen, president and CEO of the National Trust for Historic Preservation, gave her first interview about her lawsuit against Trump's massive White House renovation plans. In October, construction crews demolished the East Wing of the White House without warning or consultation to make way for Trump's ballroom project. Quillen argues the demolition violated federal law requiring congressional approval for alterations to the White House, calling Trump a steward of the building, not its owner. Trump has personally called Quillen multiple times urging her to drop the lawsuit — a request the administration officially made in late April. When accused of Trump Derangement Syndrome, Quillen responded: "I don't know what Trump Derangement Syndrome is, exactly... I just believe that any sitting president should follow the law." Trump's construction agenda extends far beyond the ballroom. He plans a 250-foot arch near Arlington National Cemetery — 2.5 times the size of the Lincoln Memorial and nearly as high as the Capitol Dome — which the FAA is reviewing for air traffic interference. Vietnam veterans are suing to stop it because it blocks cemetery views. Trump also plans to paint the Eisenhower Executive Office Building white, install a patio on the Rose Garden, add gold to the Oval Office and Colonnade, drain and paint the Lincoln Memorial reflecting pool with "American flag blue" (a no-bid contract that ballooned from $1.5 million to nearly $15 million), and rename the Kennedy Center the "Trump Kennedy Center" while planning extensive renovations there. The National Trust has joined lawsuits to block any Trump construction at the Kennedy Center without congressional approval.

Roundtable Analysis: Economic Pain and Republican Fracture

The roundtable, featuring Michelle Cottle, Sarah Isgur, Chris Christie, and Donna Brazile, dissected Trump's tone-deaf comment about not thinking about American financial situations. Cottle said this will "haunt him and his party in the midterms" and predicted every Democrat will weaponize the soundbite in ads. Christie argued Trump has never cared about his party's legacy, noting he defeated Republicans before Democrats in 2016. Brazile pointed out that 70% of Americans blame Trump in part for inflation, citing sticker shock at grocery stores — gas at $7 in California, $4 in Louisiana, milk and eggs unaffordable. She criticized Trump for being tone-deaf while Speaker Mike Johnson defended him by saying "you need to understand the context." Christie countered that Trump ran on improving the economy and hasn't delivered, noting Bill Clinton won in 1992 by asking voters "Do you feel it?" — and they didn't feel improvement despite improving numbers. On redistricting, Christie noted Republicans have rigged maps to pick up roughly 10 seats heading into midterms but can't overcome the political fundamentals: Trump's approval is plummeting, and he's on a vengeance tour targeting Republicans like Bill Cassidy in Louisiana who dared to vote their conscience. On the compensation fund, Sarah Isgur acknowledged it escalates a pattern starting under Obama with third-party settlements, but Trump has "turned it up to 11." She predicted courts might police the line between executive and congressional spending power. The broader theme: Trump's focus is entirely on monuments and money while the economic pain Americans feel will define the midterms.

Takeaways

  • Demand Congress move immediately to block any settlement fund — only Congress has appropriations power, not the executive branch.
  • Monitor stock trades and financial dealings of the Trump family; audit the no-bid contracts awarded to companies previously tied to Mar-a-Lago projects.
  • Track the China summit outcomes carefully — Trump refused to commit to Taiwan arms sales and claimed tariffs were never discussed despite Chinese media reports otherwise.

Key moments

3:47Trump fund announcement

The president is expected to drop that lawsuit in exchange for what is expected to be called the President Donald J. Trump Truth and Justice Commission funded with $1,776,000,000 of taxpayer money

7:52Raskin condemns constitutional violation

Only Congress has the power to appropriate money and Congress never voted on creating this $1.7 billion political slush fund

1:55Trump dismisses American hardship

I don't think about American financial situation. I don't think about anybody. I think about one thing. We cannot let Iran have a nuclear weapon. That's all.

15:17Massie pushes back on Trump primary attack

Three billionaires from outside of Kentucky have funneled millions of dollars in here. They're trying to buy a seat.

20:55Taiwan used as negotiating leverage

It's a very good negotiating chip for us, frankly. But claiming nothing has changed in US policy towards Taiwan

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