Justice Department reaches another settlement with Trump adviser Michael Flynn
By Holmes Lybrand, CNN
(CNN) — Former Trump adviser Michael Flynn has reached another settlement with the Justice Department — this time for over $38,000 in retirement funds the Army had withheld from the former general after officials found he earned money from speaking at an event tied to the Russian government in 2015.
The new settlement comes on the heels of a separate settlement between Flynn and Trump’s Justice Department for over $1 million after he sued the government for wrongful prosecution. Flynn alleged the FBI tried to entrap him in the early days of the Trump administration, as investigators probed Russian efforts to interfere in the 2016 election.
CNN has reached out to lawyers for Flynn.
Flynn’s payouts could serve as a playbook for those who intended to apply for compensation through the now-defunct anti-weaponization fund the Justice Department set up earlier this year for those who believe they were victimized by the DOJ.
Shortly after it was announced, and amid a flurry of criticism from Republican lawmakers, Acting Attorney General Todd Blanche told members of Congress the fund was dead. Despite Blanche’s assurances, a federal judge has asked Blanche to provide a sworn statement declaring the fund has been defunct. Blanche has so far refused.
In discussing the death of the fund, Blanche has suggested other paths for people who were alleged victims of the Justice Department — including through civil lawsuits like the one Flynn originally filed.
Flynn is not the only Trump ally to settle a lawsuit with the Justice Department. In April, the Justice Department awarded former Trump aide Carter Page more than $1 million after he sued over the government’s flawed surveillance of him in 2016 due to his Russian contacts.
Flynn’s settlement is still being ironed out, according to court records.
The anti-weaponization fund was established earlier this year as part of a settlement with Trump after his and many other people’s tax information was leaked to media outlets by an IRS contractor. In 2024, the contractor was sentenced to 5 years in prison.
Despite his efforts, Blanche continues to face sharp criticism and questions over the fund and settlement as he nears a Senate confirmation hearing to become the attorney general, removing “acting” from his job title.
Critics are still raising concerns over a memo from Blanche tied to the settlement blocking Trump, his family and companies from any IRS investigations over past tax filings.
The-CNN-Wire
™ & © 2026 Cable News Network, Inc., a Warner Bros. Discovery Company. All rights reserved.
