Federal Court Halts Trump’s $1.8B Compensation Fund After GOP Pushback

WASHINGTON — Federal officials announced Monday they will follow a court order that temporarily stops a compensation fund worth nearly $1.8 billion designed for allies of President Donald Trump. The decision comes after facing legal challenges and strong criticism from Republican lawmakers worried about possible payments to those involved in the January 6, 2021, Capitol riot.

The Justice Department’s announcement follows a Friday decision by a federal judge in Virginia who ordered the fund’s creation to be stopped while awaiting further legal arguments scheduled for later this month. Department officials stated they “disagree strongly” with the court’s decision but will follow the order.

The administration had supported the $1.776 billion “Anti-Weaponization Fund,” which was created to settle Trump’s legal case against the Internal Revenue Service regarding leaked tax documents. Officials described it as a necessary remedy for what they claim was politically motivated law enforcement actions during the previous administration.

While some Trump supporters, including Capitol riot participants, welcomed news of the fund, Congressional Republicans responded with strong opposition. Lawmakers confronted acting Attorney General Todd Blanche about the fund during a private meeting last month that Sen. Ted Cruz of Texas described as one of “the roughest meetings I’ve seen in my entire time in the Senate.”

Friday brought two court decisions that put the fund’s future in doubt.

A Virginia judge temporarily stopped the fund’s creation and set a June 12 hearing to consider arguments about extending her order preventing the government from proceeding with the fund during ongoing legal challenges.

“This Fund was open to anybody who was so weaponized, targeted, or persecuted, whether they were Democrat, Republican, Conservative, Independent, or otherwise,” the Justice Department stated while expressing disagreement with the ruling. “The Department will abide by the Court’s ruling.”

In a separate case, the federal judge in Florida handling Trump’s IRS lawsuit ordered Trump’s legal team to address “grievous allegations” from settlement opponents who claim the president dropped his case to avoid court examination of an improper agreement. U.S. District Judge Kathleen Williams gave them until June 12 to provide written responses to claims of collusion and whether the case should be reopened because the court was the “victim of a fraud.”