Former U.S. President Donald Trump is expected to withdraw his $10 billion lawsuit against the Internal Revenue Service (IRS). In exchange, a $1.7 billion compensation fund will reportedly be created to reimburse Trump’s allies who claim they were unfairly targeted during the Biden administration. The fund will be managed by a commission with full authority to distribute taxpayer money to settle claims from individuals alleging misuse of the legal system.

According to the report, the compensation will cover those who say they suffered due to alleged political targeting, including around 1,600 people charged in the January 6 Capitol attack and possibly entities linked to Trump himself. The settlement agreement is expected to be finalized within the next few days.

ABC News cited sources indicating that the creation of this compensation fund is considered a key condition for Trump’s withdrawal of multiple legal actions against the federal government.