US judge blocks payouts from Trump's $1.8 billion anti-weaponisation fund

A federal judge has temporarily blocked payouts from President Donald Trump's $1.776 billion settlement fund amid an ongoing legal challenge. The court is set to hear arguments on June 12 over whether the fund should remain suspended, as concerns mount over its transparency and eligibility criteria.

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The fund was created as part of a settlement tied to Trump’s lawsuit against the Internal Revenue Service (IRS) over the leak of his tax returns. (File Photo)
The fund was created as part of a settlement tied to Trump’s lawsuit against the Internal Revenue Service (IRS) over the leak of his tax returns.

A federal judge has temporarily stopped President Donald Trump’s administration from disbursing payments through a new $1.776 billion settlement fund intended for Trump allies who claim they were targeted by a “weaponised” government.

US District Judge Leonie Brinkema, sitting in Alexandria, Virginia, issued the order on Friday, blocking the administration from moving ahead with the “Anti-Weaponization Fund” while a legal challenge against it is underway.

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The judge also scheduled a hearing for June 12 to consider whether the restrictions should remain in place until the case is fully resolved.

The fund was created as part of a settlement tied to Trump’s lawsuit against the Internal Revenue Service (IRS) over the leak of his tax returns.

According to the administration, the initiative is intended to compensate individuals who believe they were harmed by what Trump and his supporters describe as the “weaponisation” of federal agencies.

However, the proposal has sparked sharp criticism from legal groups, Democrats and even some Republicans.

Concerns have been raised over who could qualify for compensation and whether individuals involved in the January 6, 2021, attack on the US Capitol could potentially seek payouts.

Acting Attorney General Todd Blanche has faced mounting questions over the lack of transparency surrounding the fund.

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So far, the Justice Department has not established the planned five-member commission that would determine eligibility criteria and oversee claims. No applications have been accepted and no payments have been made.

The lawsuit challenging the fund was filed by Democracy Forward, a legal advocacy organisation. The group argues that the administration lacks clear legal authority to create the fund and that there are insufficient safeguards or accountability mechanisms governing how public money could be distributed.

The court’s temporary order will remain in effect pending further hearings in the case.

- Ends
Published By:
Shipra Parashar
Published On:
May 29, 2026 19:55 IST

A federal judge has temporarily stopped President Donald Trump’s administration from disbursing payments through a new $1.776 billion settlement fund intended for Trump allies who claim they were targeted by a “weaponised” government.

US District Judge Leonie Brinkema, sitting in Alexandria, Virginia, issued the order on Friday, blocking the administration from moving ahead with the “Anti-Weaponization Fund” while a legal challenge against it is underway.

The judge also scheduled a hearing for June 12 to consider whether the restrictions should remain in place until the case is fully resolved.

The fund was created as part of a settlement tied to Trump’s lawsuit against the Internal Revenue Service (IRS) over the leak of his tax returns.

According to the administration, the initiative is intended to compensate individuals who believe they were harmed by what Trump and his supporters describe as the “weaponisation” of federal agencies.

However, the proposal has sparked sharp criticism from legal groups, Democrats and even some Republicans.

Concerns have been raised over who could qualify for compensation and whether individuals involved in the January 6, 2021, attack on the US Capitol could potentially seek payouts.

Acting Attorney General Todd Blanche has faced mounting questions over the lack of transparency surrounding the fund.

So far, the Justice Department has not established the planned five-member commission that would determine eligibility criteria and oversee claims. No applications have been accepted and no payments have been made.

The lawsuit challenging the fund was filed by Democracy Forward, a legal advocacy organisation. The group argues that the administration lacks clear legal authority to create the fund and that there are insufficient safeguards or accountability mechanisms governing how public money could be distributed.

The court’s temporary order will remain in effect pending further hearings in the case.

- Ends
Published By:
Shipra Parashar
Published On:
May 29, 2026 19:55 IST

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