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A federal judge temporarily blocked on Friday the payments from the $1.776 billion compensation fund created by the Trump administration, known as the "Anti-Weaponization" fund, preventing the government from processing or paying any claims while the legality of the mechanism is being examined.
The Department of Justice announced the fund on May 18 as part of a settlement in the case President Donald J. Trump v. Internal Revenue Service, with the stated aim of providing financial compensation and formal apologies to individuals who claim to have been victims of political weaponization by the government during the Biden era.
Among the possible beneficiaries are individuals charged in connection with the events of the Capitol assault on January 6, 2021 and other figures close to Trump, whom the president granted a large-scale pardon at the beginning of his second term.
The fund is financed by the Judgment Fund of the United States Treasury, a permanent federal mechanism that allows for the payment of legal settlements against the government without the need for Congressional approval for each individual payment, which has raised concerns regarding the lack of legislative oversight.
The organization Democracy Forward filed a lawsuit on May 22 to block the fund, labeling it a "dark money fund."
"People and organizations harmed by the Trump-Vance administration filed a lawsuit to block a $1.776 billion slush fund," the organization stated in its announcement.
The Capitol agents Harry Dunn and Daniel Hodges also went to court to attempt to stop the payments, joining the legal actions against the mechanism.
Critics also pointed out that the fund's administrative commission would have broad discretion to distribute the money and that Trump could remove its members without cause, which raised concerns about conflicts of interest.
The Justice Department defended the fund by stating that "the submission of a claim is voluntary" and that "there are no partisan requirements to file one," emphasizing that anyone who claims to have been a victim of government persecution can participate.
As part of the original agreement, the plaintiffs—Trump's allies—agreed to withdraw their lawsuit with prejudice and their related administrative claims.
The agreement would also have included protections for Trump against future tax audits for periods prior to May 18.
The court order issued this Friday is temporary and does not constitute a final resolution of the case, so the legal debate regarding the legality of the fund will continue in court. According to the original terms of the agreement, the fund would cease processing claims no later than December 1, 2028.
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