Federal Judge Blocks Trump Administration’s Settlement Fund

A federal judge has temporarily stopped the Trump administration from establishing a $1.776 billion settlement fund intended for allies who believe they were targeted by government actions. This halt will prevent the fund’s formation or any payouts for at least the next two weeks.

U.S. District Judge Leonie Brinkema in Alexandria, Virginia, has scheduled a hearing on June 12 to discuss the possibility of extending her order. The aim is to prevent the government from proceeding with the ‘Anti-Weaponization Fund’ amidst ongoing litigation. The fund was designed to settle President Donald Trump’s lawsuit against the IRS regarding the leak of his tax returns.

A spokesperson from the Justice Department expressed strong confidence in the legal foundation of the fund, citing precedents from President Barack Obama’s administration. The spokesperson stated, “We will not allow the policy preferences of judges to interfere with our efforts to provide restitution to victims of lawfare.”

The White House referred all comments on the ruling to the Justice Department. The judge, appointed by former President Bill Clinton, has given the government a week to respond to plaintiffs’ arguments supporting the freeze on the fund’s creation and operation.

The fund has sparked significant controversy since its inception, with questions about eligibility and concerns that it might even compensate violent participants from the January 6, 2021, Capitol riot. Acting Attorney General Todd Blanche faced scrutiny regarding these issues but did not rule out potential payouts to Capitol riot participants.

The Justice Department has yet to form the commission that would determine payout criteria. As a result, no funds have been paid out, and no claims have been accepted. Legal advocacy group Democracy Forward is seeking a court order to prevent the fund’s implementation and any potential disbursals.

The lawsuit argues that there is no legal basis for the fund and criticizes the administration for targeting individuals and entities on personal and ideological grounds. Plaintiffs include a former prosecutor and a college professor who faced charges related to protests.

Other lawsuits in Washington are also challenging the fund, with one from Citizens for Responsibility and Ethics in Washington calling it “a jaw-dropping act of presidential corruption.” Two police officers who defended the Capitol during the riots have also sued.

During a congressional hearing, Acting Attorney General Blanche did not exclude the possibility that Capitol riot participants might be eligible for payouts. Over 1,600 people faced federal charges related to the riot, with more than 1,200 convicted and sentenced before President Trump issued mass pardons and commuted sentences.

One plaintiff in the Virginia case, former Assistant U.S. Attorney Andrew Floyd, believes he was fired in retaliation for his work on January 6 cases. Another plaintiff, professor Jonathan Caravello, was acquitted of an assault charge related to a protest against an immigration raid.