The Trump administration recently established a $1.8 billion fund aimed at compensating individuals claiming mistreatment by the federal government. Legal experts argue that this fund violates existing Justice Department policies and practices.
On her first day as Attorney General in February 2025, Pam Bondi signed a directive seemingly prohibiting such initiatives. This directive highlights a contradiction within the administration’s approach.
Todd Blanche, acting Attorney General, defended the fund during a Senate hearing, describing it as ‘unusual’ yet suitable. He claimed it mirrors past settlements. However, veteran justice officials remain doubtful, especially concerning the immunity provision for President Trump, Eric and Donald Trump Jr., and the Trump Organization from tax penalties.
Critics point out that the fund resolves a lawsuit for one group by granting over a billion dollars to unrelated parties, a move seen as unorthodox. Jennifer Ricketts, a former director in the Justice Department’s civil division, expressed shock at the blanket immunity granted, labeling it corrupt and favoring the president.
The fund also clashes with a policy, established by Pam Bondi last year, prohibiting payments to organizations not involved in the original lawsuit. The Justice Department has yet to comment on this issue.
The arrangement, orchestrated between the president’s legal team and his administration without judicial oversight, could lead to significant payouts even to those who have not filed suits against the government.