Judge indefinitely blocks Trump’s $1.8B payout fund

A federal judge on Friday indefinitely blocked President Donald Trump’s proposed $1.8 billion payout fund, rejecting the Trump administration’s claims that the effort is dead despite no sworn commitment to abandon it.

U.S. District Judge Leonie M. Brinkema of the Eastern District of Virginia issued a preliminary injunction at a hearing that extended a temporary block she had imposed on May 29, 2026. She gave the administration one week to provide a “clear, unambiguous” sworn declaration from the Treasury Secretary and acting Attorney General Todd Blanche that the fund will not proceed.

The fund emerged from a settlement agreement between Trump and the Justice Department over the president’s $10 billion lawsuit against the Internal Revenue Service. The Justice Department set up the $1.776 billion “anti-weaponization” fund to compensate those who claim they were victims of what Trump and his allies describe as “lawfare” and “weaponization” — terms they use for investigations and criminal cases against Trump.

Brinkema said the government’s public statements that the fund is “not going forward” were insufficient. She emphasized that she needed “absolute certainty” the fund would not be revived, citing Trump’s continued praise of the idea and Blanche’s refusal to commit under penalty of perjury that the administration will not attempt to resurrect it in the future.

“We don’t have the kind of absolute certainty that this fund wouldn’t rear its head again,” Brinkema said from the bench, adding that “the public interest in this case is very, very strong in my view.”

The fund was first temporarily blocked after the legal advocacy group Democracy Forward filed suit in late May, arguing the fund lacks legal basis and accountability. Both Democrats and Republicans criticized the effort, calling it a “slush fund” for Trump’s allies. The fund was funded from the Judgment Fund, a permanent, uncapped appropriation Congress uses to pay settlements and judgments.

Last week, Justice Department officials called off the effort themselves, reassuring Brinkema and a D.C. federal judge that the fund “has not been set up and is now not going forward.” Blanche also told members of Congress that the administration had scrapped plans for the fund after intense bipartisan political backlash. However, he resisted calls to put that pledge in writing or to publicly amend the settlement agreement that created the fund.

Sources

  • The Washington Post — reported the preliminary injunction and Brinkema’s requirement for a sworn declaration
  • Reuters — confirmed the indefinite block and the one-week deadline for a sworn statement
  • PBS NewsHour — provided background on the fund’s purpose and the settlement agreement with the IRS
  • CNN — reported on Brinkema’s skepticism about the administration’s claims the fund is dead
  • Democracy Forward — documented the legal challenge and plaintiffs’ arguments about the fund

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