A federal judge has temporarily halted the Trump administration’s plans to create a new $1.776 billion settlement fund. This fund was intended for allies of former President Donald Trump who claim they suffered from government weaponization. The order prevents any payouts for at least two weeks.
U.S. District Judge Leonie Brinkema, based in Alexandria, Virginia, set a June 12 hearing to decide if the block on the fund’s creation should continue amid ongoing legal challenges. This fund was proposed as part of President Trump’s lawsuit against the IRS concerning leaked tax returns.
A spokesperson for the Justice Department expressed strong confidence in the fund’s legality, citing precedents from the Obama administration. The spokesperson stated, “We will not allow the policy preferences of judges to interfere with our efforts to provide restitution to victims of lawfare.” The White House directed inquiries to the Justice Department without commenting further on the judge’s ruling.
Judge Brinkema, appointed by Democratic President Bill Clinton, gave the government a week to address the plaintiffs’ plea for halting the fund’s operations, including any financial transactions. The fund has sparked significant opposition, including from Republicans concerned about eligibility criteria and the potential for violent participants in the Capitol events of January 6, 2021, to claim compensation.
For now, the Justice Department has not established the commission responsible for determining payout guidelines, so no claims or payouts have occurred. Attorneys from Democracy Forward, a legal advocacy group, are seeking a court order to prevent the fund’s implementation, arguing it lacks legal grounding and accountability.
The plaintiffs’ lawyers noted, “President Trump and his allies have long accused Democrats of using the government and the legal system as political weapons.” They argued that the Trump administration does not recognize its own history of politically motivated targeting.
Judge Brinkema highlighted the importance of maintaining the current situation to prevent any irreversible distributions from the fund. Her directive also stops the Trump administration from allotting any funds, assessing claims, or initiating disbursements.
The lawsuit’s plaintiffs include a dismissed prosecutor and a professor acquitted of charges related to federal agents. “The unlawfulness that has imbued the Anti-Weaponization Fund from its inception requires that it be wholly dismantled,” the suit claims.
Additional lawsuits challenging the fund’s creation have been filed in Washington, with one by Citizens for Responsibility and Ethics in Washington labeling the fund as “a jaw-dropping act of presidential corruption.” Different lawsuits include claims by two police officers involved in defending the Capitol against the January 6 mob.
During a congressional hearing, acting Attorney General Todd Blanche did not dismiss the possibility of January 6 rioters receiving payouts. After the insurrection, nearly 1,600 individuals faced federal charges; over 1,200 were convicted before Trump issued mass pardons and commuted sentences.
Among the Virginia case plaintiffs is former Assistant U.S. Attorney Andrew Floyd, who prosecuted Capitol riot cases until his dismissal by then-Attorney General Pam Bondi. Floyd suspects his firing was retaliation for his involvement in January 6 cases, expressing concerns about implications for future government actions.
Another plaintiff is Jonathan Caravello, a California State University Channel Islands professor. He was acquitted of an assault charge after allegedly throwing a tear gas canister at federal agents during a 2025 protest over an immigration raid in California.