Federal judge indefinitely blocks Trump's $1.8B payout fund, demands sworn declaration

Hearing in Alexandria

U.S. District Judge Leonie M. Brinkema issued a preliminary injunction Friday blocking the creation and operation of the $1.8 billion "Anti-Weaponization Fund." The decision extends a temporary block she imposed on May 29. She rejected the Justice Department's argument that the case is moot after acting Attorney General Todd Blanche told Congress the plan is "not moving forward." Brinkema said the administration must submit a "clear, unambiguous" sworn declaration that the fund is dead within one week.

We don't have the kind of absolute certainty that this fund wouldn't rear its head again.

The public interest in this case is very, very strong in my view.

The Justice Department attorney at the hearing noted that a court filing already stated the fund has "not been set up and is now not going forward," but Brinkema called that insufficient. She wants the declaration signed by the treasury secretary and Blanche.

Fund origins and backlash

The administration created the fund to resolve Trump's lawsuit against the Internal Revenue Service over the leak of his tax returns. It was designed to compensate people who claim they were improperly investigated or prosecuted by previous administrations. Critics, including plaintiffs represented by Democracy Forward, call it a slush fund for Trump's allies.

The fund has not been set up and is now not going forward.

Despite Blanche's statement to Congress and a Justice Department filing, Trump has not publicly and unequivocally endorsed its cancellation, and officials have suggested they are still looking for ways to issue payouts to alleged victims of government "weaponization," including January 6 rioters and close allies of the president.

What's next

Brinkema gave the parties one week to negotiate an agreement for a sworn declaration. If the declaration is entered, she will consider dismissing the case. Without it, the injunction stays in place, barring any transfers, claim reviews, or checks from the fund.