Federal judge halts Trump administration’s $1.8 billion compensation fund
- In Reports
- 12:44 PM, May 30, 2026
- Myind Staff
A U.S. federal judge has temporarily stopped President Donald Trump’s administration from moving forward with a nearly $1.8 billion fund that was created to compensate people who claim they were victims of what Trump has described as government “weaponisation.”
U.S. District Judge Leonie Brinkema of the Eastern District of Virginia issued the order on Friday, preventing the administration from taking any further steps to establish or operate the fund while the court reviews additional legal arguments. The order will remain in place at least until June 12.
The Justice Department had announced the creation of the “Anti-Weaponisation Fund” last week as part of a settlement agreement in Trump’s lawsuit against the Internal Revenue Service (IRS). The lawsuit was related to the leak of Trump’s tax records.
Under the proposal, a $1.776 billion fund would be overseen by a five-member commission. The commission would distribute payments to individuals who can demonstrate that they were victims of “lawfare” and “weaponisation.” These terms have frequently been used by Trump and his allies to describe investigations and criminal cases that targeted them.
The judge’s decision came in response to a lawsuit filed by Democracy Forward, a group that argues it has been targeted by the Trump-Vance administration because of its political and ideological views. The organisation claimed that people associated with the group would likely be excluded from receiving compensation from the fund.
Reacting to the ruling, Democracy Forward President Skye Perryman said, “This is a victory for transparency, the rule of law, and the American people. No administration has the authority to spend public money through a political rewards program.”
The Justice Department defended the legality of the fund and expressed confidence that it would ultimately withstand legal scrutiny. A department spokesperson said the DOJ “remains extremely confident in the legality” of the fund. Acting Attorney General Todd Blanche has also stated that there are no partisan requirements that determine who can receive compensation.
Responding to the court action, the DOJ spokesperson added, “We will not allow the policy preferences of judges to interfere with our efforts to provide restitution to victims of lawfare.”
The proposed fund has faced criticism from both Democrats and some Republicans. Several Republican lawmakers raised concerns that individuals involved in the January 6, 2021, attack on the U.S. Capitol could potentially qualify for taxpayer-funded compensation. Critics from across the political spectrum described the fund as a “slush fund” that could benefit Trump’s political supporters.
The lawsuit filed by Democracy Forward is one of at least three legal challenges currently seeking to block the fund’s creation.
In her ruling, Judge Brinkema said the temporary order was necessary to preserve the existing situation until the court could fully examine the legal issues. She noted that the restriction would help prevent any money from being “irreversibly disbursed” before a decision is made on the plaintiffs’ request for a temporary restraining order.
The group bringing the lawsuit includes a former Justice Department prosecutor who worked on cases against January 6 rioters. It also includes a California professor who was arrested during a protest against an immigration enforcement raid.
According to court filings, the plaintiffs said government lawyers informed them that no money had yet been transferred into the fund. However, they argued that officials refused to provide more than 24 hours’ notice before any transfer could take place.
The plaintiffs described this arrangement as “patently insufficient.” They argued that such limited notice could allow the fund to begin operating before courts had the opportunity to determine whether it was legally established.
So far, the Justice Department has not identified any of the five commissioners who are expected to oversee the fund. Those commissioners are set to be appointed by Acting Attorney General Todd Blanche.
The department has previously indicated that it intended to transfer money into the fund within 60 days of its announcement on May 18. However, Judge Brinkema’s order now prevents any further action related to the fund until the court reviews the matter further.

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