Judge temporarily blocks payouts from Trump's $1.8B 'anti-weaponization' settlement fund

A US federal judge has temporarily halted the USD 1.776 billion “Anti-Weaponisation Fund”, blocking the administration of Donald Trump from distributing any payments or continuing work on the fund until a legal challenge is heard next month.

US District Judge Leonie Brinkema, sitting in Alexandria, Virginia, issued the temporary restraining order on Friday and set 12 June for the next hearing. The fund was created as part of a settlement resolving Trump’s lawsuit against the Internal Revenue Service over the leak of his tax returns.

Fund faces immediate legal backlash

The settlement fund, unveiled only a week ago, has triggered intense criticism from civil society groups, Democrats in Congress and even some Republicans. A coalition led by the legal advocacy group Democracy Forward has asked the court to block the fund’s implementation entirely, arguing that it lacks any legal basis or accountability.

Their lawsuit describes the fund as structurally unlawful, stating, “The unlawfulness that has imbued the Anti-Weaponization Fund from its inception requires that it be wholly dismantled.”

A second legal challenge was filed in Washington, DC, by the watchdog organisation Citizens for Responsibility and Ethics in Washington, which labelled the fund a “slush fund” created through a “sham settlement”.

Concerns over eligibility, including January 6 rioters

The controversy escalated further during a congressional hearing earlier this week, when Acting Attorney General Todd Blanche refused to rule out the possibility that individuals convicted of assaulting police during the 6 January 2021 US Capitol attack might qualify for compensation.

Two police officers who defended the Capitol have already filed suit to prevent any such payments, warning that the scheme may open the door for compensation to violent offenders.

The Justice Department has not yet formed the five-member commission that will determine payout criteria, and no claims have been processed so far.

High-profile plaintiffs challenge legality

Plaintiffs in the Democracy Forward lawsuit include:

• Andrew Floyd, a former Assistant US Attorney and deputy chief of the Justice Department’s Capitol Siege Section, who says he was dismissed in retaliation for his work on January 6 cases.
• Jonathan Caravello, a California State University professor acquitted of throwing a tear gas canister at federal agents during a 2025 protest.
• The watchdog Common Cause, the city of New Haven, Connecticut, and the National Abortion Federation, all of whom argue that the fund could improperly reward individuals who have targeted their organisations or cities.

The National Abortion Federation says the scheme could even incentivise violence against abortion providers if extremists believe their actions could later be compensated.

Political tensions deepen within Republican ranks

The settlement’s rollout had also aggravated divisions inside the Republican Party. Several GOP senators have voiced unease, particularly after Trump endorsed Texas Attorney General Ken Paxton over John Cornyn in a looming primary contest.

Senator John Thune warned that internal party conflicts risk complicating legislative priorities, remarking, "There's always a consequence with taking on United States senators… But what we have to deal with up here is moving the agenda, and obviously that can become slightly more complicated."

Background

The lawsuits unfold against the backdrop of Trump’s mass clemency actions following his return to the White House. His pardons and commutations erased hundreds of January 6 convictions and dismissed all remaining cases, including those involving defendants who assaulted police or plotted to attack the Capitol to keep Trump in office after the 2020 election loss to Joe Biden.

After resuming office, Trump appointed conservative activist Ed Martin as interim US Attorney for the District of Columbia. Martin, a vocal defender of January 6 defendants, subsequently removed or demoted several prosecutors who had handled riot-related cases.

(With AP inputs)