US judge freezes Trump’s $1.8bn compensation fund over legality concerns

A U.S. federal judge has issued a temporary block on a $1.8 billion compensation package, a key initiative of former President Donald Trump's administration, citing concerns over its legality and potential misuse.

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irreversibly disbursed

U.S. District Judge Leonie Brinkema barred the administration from establishing or operating the fund while she reviews the legal challenge. The order prevents any money transfers, claim considerations, or payment disbursements, ensuring funds are not irreversibly disbursed before the case is heard. This decision marks another setback for the initiative, which has drawn criticism from Democrats, legal experts, and some Republicans.

The fund was created by the Justice Department as part of a settlement for Trump's civil lawsuit against the IRS concerning the leak of his tax returns. The administration claims the program aims to compensate individuals who experienced "weaponization" and "lawfare" by the government, which Trump defines as politically motivated targeting of conservatives and his supporters.

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weaponization

However, opponents contend the fund lacks a clear legal foundation and public oversight. They express concern that it could be used to reward loyalists, including those convicted in connection with the January 6, 2021 Capitol attack. A lawsuit filed by plaintiffs including former federal prosecutor Andrew Floyd and professor Jonathan Caravello argues the fund is a "collusive agreement" without congressional authorization or legal basis.

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lawfare

Judge Brinkema scheduled a hearing for June 12 to determine if the freeze on the fund should be extended. Neither Trump nor the Justice Department has immediately responded to the ruling. The formal application process for the fund had not yet begun, and the criteria for the five-member board that will decide on compensation recipients remain undisclosed.

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slush fund