President dismissed his $10 billion lawsuit against the IRS and Treasury Department, just hours after reports emerged that his administration was considering a massive taxpayer-funded compensation program for political allies who claim they were unfairly targeted by past investigations.

According to ABC News, the proposed $1.7 billion fund could compensate Trump allies, including some connected to Jan. 6 prosecutions and other federal investigations. The report said commissioners overseeing the payouts would reportedly not be required to publicly explain why certain individuals received money.

Trump, Donald Trump Jr., Eric Trump and the Trump Organization originally filed the lawsuit in January, accusing the IRS of failing to stop the leak of Trump’s tax records. The records were leaked by former IRS contractor Charles Littlejohn, who later pleaded guilty and was sentenced to prison for disclosing confidential tax information to media outlets.

The case drew unusual legal scrutiny because Trump, as president, effectively oversees the Justice Department lawyers defending the IRS in court. Last month, U.S. District Judge Kathleen Williams questioned whether the lawsuit created a conflict by allowing a sitting president to seek damages from agencies controlled by his own administration.

The White House referred questions Monday to the Justice Department, while representatives for the Treasury Department, IRS and Trump’s legal team did not immediately respond to requests for comment.