Saturday, May 30th 2026

US Judge Temporarily Blocks Trump's $1.8 Billion Compensation Fund


US Judge Temporarily Blocks Trump's $1.8 Billion Compensation Fund
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A U.S. judge on Friday temporarily blocked President Donald Trump's administration from setting up a nearly $1.8 billion fund to compensate victims of what Trump has called government "weaponization."

The order from U.S. District Judge Leonie Brinkema bars the government from "taking any further action" in the creation or operation of the fund while legal arguments in the case challenging the fund continue. The order is intended "to ensure no funds are irreversibly disbursed from the Anti-Weaponization Fund," Brinkema wrote.

The Trump administration announced it was creating the $1.776 billion fund last week to resolve a $10 billion lawsuit filed by Donald Trump and his sons over the leak of Trump's tax returns. The government did not take preliminary steps to try to defend itself in the lawsuit, prompting accusations of improper collusion and corruption.

The government has said that anyone who is a victim of government weaponization can submit a claim to the fund, which will be controlled by four commissioners appointed by the U.S. attorney general and a fifth appointed in consultation with congressional leadership. All the commissioners can be fired by Trump for any reason.

There are no restrictions on who can apply for money from the fund, and even Republicans have expressed outrage that January 6 rioters who assaulted police officers could receive a payout. The fund also does not have to disclose how much it paid to whom and its reasons for doing so, prompting criticism that it is essentially a slush fund.

The ruling from Brinkema, a Bill Clinton appointee, came in a lawsuit filed by the watchdog group Democracy Forward seeking to block the fund.

According to The Guardian, the ruling was intended to preserve the status quo and was necessary after the government declined to provide assurances that no funds would be transferred or paid before June 19 to allow for adequate briefing in the case.

"We are pleased that the court granted our request to ensure the administration does not distribute taxpayer funds until our motion has been considered. The court acted quickly to stop this unlawful scheme before money could start flowing out the door," the plaintiffs said in a statement.

 

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