Miami Judge Demands Explanation from Trump on Million-Dollar Fund for Allies

A federal judge in Miami has demanded an explanation from Donald Trump's lawyers regarding a multi-million dollar fund intended to compensate his allies, demanding to know why the agreement with the IRS should be considered legitimate.

Judge Kathleen Williams has given the parties until June 12 to justify the deal, which she suggested could be an improper use of the judicial system if the lawsuit was "frivolous" and solely aimed at forcing an agreement. This refers to a lawsuit filed by the Trump family earlier in 2026 concerning the leak of their past tax returns to some media outlets.

The judge's order came after a group of retired federal judges urged the court to reopen the case, claiming that the actual terms of the pact between the Trump family and the government were concealed. This development casts further scrutiny on the fund and its origins.

Separately, a federal judge in Virginia, Leonie Brinkema, had previously placed a temporary hold on a nearly $1.8 billion fund announced by the U.S. government on May 19. This fund was intended to compensate Trump allies who, according to the administration, faced persecution under the Joe Biden government (2021-2025). Judge Brinkema's order prevents any action related to the creation or operation of the "Fund Against Instrumentalization," including fund transfers or claim considerations, while the plaintiffs' motion remains pending.

Concerns are mounting among Democrats and a growing number of Republicans about public money potentially benefiting political allies or donors of Trump. The Department of Justice has stated that, as part of the agreement, Trump, his sons Donald Trump Jr. and Eric Trump, and the Trump Organization would receive a "formal apology" but no financial compensation or damages.