The Department of Justice is reportedly considering the creation of a $1.7 billion compensation fund as part of a potential settlement agreement with former President Donald Trump, according to multiple sources familiar with the discussions.

The proposed fund, which sources say could be called a "Truth and Justice Commission," would compensate individuals who claim they were wrongfully targeted by government agencies during the Biden administration. The compensation mechanism would be established to pay claims from alleged victims of what Trump has characterized as government "weaponization."

The potential settlement discussions are connected to Trump's $10 billion lawsuit against the Internal Revenue Service. According to reports, Trump may agree to drop the massive legal action in exchange for the establishment of the compensation fund, though the proposed settlement amount represents significantly less than his original claim.

If finalized, the agreement would involve substantial taxpayer funding for the compensation program. The Justice Department has not officially confirmed the reported negotiations or provided details about the proposed settlement terms.

The discussions represent an unusual development in the relationship between the executive branch and ongoing legal disputes involving the former president. Details about the timeline for any potential agreement or the specific criteria for compensation eligibility have not been disclosed by the parties involved.