Judge Temporarily Blocks Settlement Fund for Trump Allies

A federal judge has temporarily halted the establishment of the Trump administration’s $1.776 billion settlement fund aimed at supporting allies who believe they were victims of governmental misuse. This pause will last at least two weeks, pending further litigation.

U.S. District Judge Leonie Brinkema scheduled a hearing for June 12 to consider whether the administration should continue to be blocked from implementing its “Anti-Weaponization Fund.” The fund intended to resolve a lawsuit President Donald Trump filed against the IRS regarding leaked tax returns.

The Justice Department expressed confidence in the fund’s legality, citing precedents from President Barack Obama’s time in office. However, the White House has not commented, deferring to the Justice Department’s statements.

Judge Brinkema, appointed by President Bill Clinton, required the government to respond to plaintiff arguments seeking the fund’s suspension. The plaintiffs argue the fund has no legal basis or accountability and allege political targeting by the Trump administration.

The Justice Department has yet to form a commission to decide payout criteria, so no payouts or claims have started. The fund’s announcement has faced criticism, even from Republicans, over potential provisions and eligibility concerns, including considerations for those involved in the U.S. Capitol riots on January 6, 2021.

The plaintiffs include Democracy Forward, a legal advocacy group, and individuals like former Assistant U.S. Attorney Andrew Floyd, who claims retaliatory dismissal due to his work on Capitol riot cases. Additionally, California State University professor Jonathan Caravello, acquitted of assault charges, is also a plaintiff.

Other lawsuits filed in Washington challenge the fund’s creation, with claims of presidential corruption. During recent congressional hearings, Acting Attorney General Todd Blanche did not dismiss the possibility that Capitol rioters might receive payouts.