US Court lets lawsuit against Trump’s $1.8bn compensation fund proceed

A U.S. judge has permitted a lawsuit challenging a $1.8 billion compensation fund intended for President Donald Trump's political allies to move forward. District Judge Leonie Brinkema ruled that the administration had not provided sufficient assurances that the program, criticized as a "slush fund," has been abandoned.

Earlier this month, Brinkema ordered the Trump administration to submit a sworn statement confirming the fund's termination. However, in an order released Thursday, she noted the lack of such assurances. "Defendants were offered the opportunity to end this litigation by filing written declarations under the penalty of perjury… that the Fund will not proceed in any manner or under any other name," the judge stated. "Defendants have filed a Notice declining to provide such assurances."

The administration had previously indicated the "anti-weaponization" fund was "not moving forward," citing remarks by acting Attorney General Todd Blanche. Brinkema, however, deemed these statements insufficient to declare the case moot. She had previously blocked the fund, which aimed to compensate individuals claiming unfair treatment by the U.S. government.

Opponents argued the fund lacked clear legal basis and public oversight, potentially serving to reward loyalists, including those convicted in connection with the January 6, 2021 Capitol assault. The fund was established by the Justice Department as part of a settlement related to Trump's lawsuit against the IRS over the leak of his tax returns. An addendum to this settlement reportedly prevents the IRS from pursuing Trump, his family, or companies for back tax claims.

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Defendants were offered the opportunity to end this litigation by filing written declarations under the penalty of perjury… that the Fund will not proceed in any manner or under any other name. Defendants have filed a Notice declining to provide such assurances.