The Fifth Daily: May 12, 2026
Trump sued the IRS, now he's trying to settle with... himself. Plus: South Carolina Republicans defy Trump. And Kash Patel goes after Van Hollen's bar tab without checking what it was for.
Welcome to the weekday edition of The Fifth.
If you’d prefer just the weekly version, head to “Manage Subscription” in Substack and toggle off “The Fifth: Daily.” (I wish I could change this for you but Substack does not allow me to edit what you get. Sorry!)
Hi! Here are the top stories for Tuesday, May 12:
TRUMP V. TRUMP.
The DOJ is considering settling with President Trump after he sued the IRS for $10 billion, accusing the agency of not doing enough to prevent the leak of his tax returns during his first term, The New York Times reports tonight.
Anytime someone sues the federal government, the DOJ has discretion over whether to fight the case or settle it — based on the merits, cost, and government interest.
That “someone” usually isn’t the president. Meaning, n-e-v-e-r.
Obama-appointed Judge Kathleen Williams last month ordered both sides — Trump’s legal team and the DOJ — to file briefs by May 20 on whether the case should proceed, given the conflict of interest.
“One such employee of the executive branch, the Attorney General, has a statutory obligation to defend the IRS when it is hailed into court, but then is ostensibly required by executive mandate to adhere to the President’s opinion on a matter of law in such a case. This raises questions over whether the Parties here are truly antagonistic to each other,” Williams wrote in April, referring to a February 2025 executive order Trump issued claiming federal agencies must answer to him.
She also “appointed a group of six well-respected lawyers not otherwise involved in the case to provide her with their views on whether Mr. Trump’s lawsuit is legitimate.”
Williams set a subsequent court hearing for May 27 — one week after the briefs are due — to discuss the case. If she dismisses it as collusive, there’s nothing left to settle.
But, if the DOJ and Trump’s team reach a settlement before then, the case ends on their terms and the judge has no say. So, the DOJ — led by acting Attorney General Todd Blanche, who is reportedly desperate to impress Trump — finalizing a settlement around now would makes sense.
But as Taylor Swift writes in Karma, “cash ain't the only price.” (Sorry, not sorry).
“One of the settlement options the Justice Department and White House officials are reviewing is the possibility of the I.R.S. dropping any audits of Mr. Trump, his family members or businesses, according to two of the people,” the Times reports.
Which brings us back to the origins of this case.
In 2023, IRS contractor Chris Littlejohn pleaded guilty to leaking Trump’s records — along with others — to two unnamed publications, presumed to be ProPublica and The New York Times. The Times article, published weeks before the 2020 election, showed Trump had paid little to no income tax in 10 of the previous 15 years. (Sounds like he should be audited, right? See below).
“The tax returns that Mr. Trump has long fought to keep private tell a story fundamentally different from the one he has sold to the American public,” the Times wrote. “His reports to the I.R.S. portray a businessman who takes in hundreds of millions of dollars a year yet racks up chronic losses that he aggressively employs to avoid paying taxes. Now, with his financial challenges mounting, the records show that he depends more and more on making money from businesses that put him in potential and often direct conflict of interest with his job as president.”
Read that last line again.
Nearly six years later, the story of Trump’s second-term grift — threatening and suing news networks, hocking everything from Bibles to gold coins with his name and likeness, cryptocurrency ventures, Middle East business deals, and more — has netted him more than a billion dollars in profit in the last 12-15 months.
In January, The Times dove into the Trump family’s windfall. “A review by the editorial board relying on analyses from news organizations shows that Mr. Trump has used the office of the presidency to make at least $1.4 billion. We know this number to be an underestimate because some of his profits remain hidden from public view. And they continue to grow.”
Even if Trump doesn’t get a financial payout, the ostensible consolation prize of immunity from IRS audits leaves the door open to more swindling of the American taxpayer, potentially netting him more than any settlement with an agency under his own control ever could.
And maybe… that’s the point.
NO SURRENDER IN SOUTH CAROLINA.
South Carolina won’t be gerrymandering its congressional map — at least not yet.
Five Republican senators voted against a measure on Tuesday that would have given them time to redraw the state’s congressional map in their favor before November’s midterm elections. Despite pressure from President Trump to pass it, the amendment failed 29-17, two votes short of passing.
“BE BOLD AND COURAGEOUS, just like the Republicans of the Great State of Tennessee were last week!… Everything will be fine. GET IT DONE!” Trump wrote on Truth Social Monday night before the vote.
Senate Majority Leader Shane Massey was one of the five Republicans who voted no. “’If we don’t consider the concerns of South Carolina, there is no one left,’ Massey said. ‘We are the last line. I have too much southern blood in me to surrender.’”
South Carolina currently has six Republican-held districts and one Democratic district, represented by Rep. James Clyburn.
The proposed map would have created seven Republican-leaning districts by redrawing Clyburn’s 6th District — currently D+13 — into a seat with roughly a 3-point GOP advantage. It would have added three counties Trump won handily in 2024 and dropped four that went for Kamala Harris.
Some GOP senators, including Massey, worried the redraw could backfire: spreading enough Democrats into surrounding districts to flip them, leaving Republicans with a 5-2 or even 4-3 split instead of 7-0.
The state’s legislative session ends Thursday. Passing the amendment would have extended the session, giving lawmakers more time to draw a new map. The House — which already passed the amendment — could theoretically still send something to the Senate before then, but that appears unlikely.
Another remaining option: Republican Gov. Henry McMaster could call a special session. But even he seems reluctant. “The General Assembly still has two full days in which to finish its important work, including giving full consideration – as sought by the people – to the important question of redistricting. I urge the General Assembly to finish its work according to the U.S. and South Carolina constitutions and the best interests of the people,” McMaster said.
Rep. Nancy Mace (R-SC), who is running for governor, criticized McMaster: “We need a Governor who the statehouse will fear and listen to.”
South Carolina’s primary is scheduled for June 9.
FBI Director Kash Patel testified before Congress Tuesday and sparred with Sen. Chris Van Hollen over Patel’s reported drinking problem.
“Reports of your being so drunk and hungover that your staff had to force entry into your home are extremely alarming,” Van Hollen said. “If true, they represent a gross dereliction of your duty.”
Patel responded by offering to take an alcohol screening if Van Hollen did, accusing the senator of being a lush for spending $7,000 at a DC bar.
Patel then pulled Van Hollen’s FEC filing and posted it to X.
Van Hollen’s response:
Saudi Arabia secretly struck Iran in late March after Iran hit targets inside Saudi Arabia, Reuters reports, citing sources from both countries. “The Saudi attacks, not previously reported, mark the first time that the kingdom is known to have directly carried out military action on Iranian soil and show it is becoming much bolder in defending itself against its main regional rival… Saudi Arabia made Iran aware of the strikes and this was followed by intensive diplomatic engagement and Saudi threats to retaliate further, which led to an understanding between the two countries to de-escalate.”
Asked whether Americans’ economic pain factors into his Iran decision-making, Trump said: “Not even a little bit… I think about one thing: We cannot let Iran have a nuclear weapon.” Not exactly ideal timing. Inflation has risen 3.8% since last April, the Bureau of Labor Statistics reported — up from 2.4% year-over-year in February and 3.3% in March. Energy prices were the biggest driver, up 18% from last year. Core inflation, which strips out food and energy, rose 2.8% over the same period. The BLS also reported that real average hourly earnings — wages adjusted for inflation — fell 0.5% from March to April, and are down 0.3% over the year.
Some Republicans aren’t sold on the White House’s $1 billion taxpayer ask for Trump’s ballroom project. The Secret Service briefed Republicans on the plan Tuesday, Politico reports, but lawmakers said they need more information before signing on. Sen. John Curtis (R-UT) noted Trump previously said the estimated $400 million ballroom would be privately financed: “’It was one thing when private dollars were doing it. If you’re asking me for a billion dollars, I have some really hard questions,’” he said.
In Missouri, the state Supreme Court ruled that a Republican-drawn congressional map giving the GOP a stronger advantage did not violate the state constitution. Republicans engineered the map to shift the delegation from a 6-2 advantage to 7-1. The court also rejected a challenge from state Democrats.
FDA Commissioner Marty Makary is out, just over a week after reports surfaced that Trump and his allies were unhappy with him, Politico reports. Makary and the MAHA crowd reportedly clashed over approving fruit-flavored vapes. Makary had been reluctant to approve them “because he was worried about the public health risks,” specifically to children who favor the flavors, The Wall Street Journal reported last week. But after push back from Trump, Makary approved the products days later. Trump told reporters HHS Secretary Robert F. Kennedy Jr. made the decision and the president signed off.
Also out: FEMA’s acting chief Karen Evans, Politico reports. Trump has nominated Cameron Hamilton instead — who briefly held the job last year before being pushed out by then-DHS Secretary Kristi Noem, who herself was fired in March and was replaced by Markwayne Mullin.
An appeals court agreed to delay Trump’s payment of more than $83 million to E. Jean Carroll until the Supreme Court decides whether to hear his appeal. If he loses, Trump will owe the settlement plus more than $7 million in interest. Carroll sued Trump for defamation and won after he accused her of fabricating her account that he sexually assaulted her in a department store dressing room in 1996.
Finally, Nicholas Kristof’s investigative piece for The New York Times on widespread sexual abuse of Palestinians is getting lots of attention — and not the good kind. I’ll have more on it later this week. But, if you’d like to read it first, here is a gift link: The Silence That Meets the Rape of Palestinians. As it turns out, it’s not met with silence — but denial.
That’s it for Tuesday.
The mission of The Fifth is to make it simpler for you to stay informed, help you make sense of the news (as best I can), and provide you with facts, context, credible sources, and some sarcasm.
If you know someone who might like it, please consider sharing it!
Email me with questions, feedback, or just to say “hi!” at huma@fromthefifth.com.
—Huma