US Judge Blocks Trump’s $1.8bn Compensation Fund For Political Allies

A US federal judge on Friday temporarily blocked the White House from advancing a controversial $1.8 billion compensation package critics have described as a “slush fund” for President Donald Trump’s political allies.

US District Judge Leonie Brinkema barred the administration from taking any further steps to create or operate the fund while she considers whether to impose a longer-term freeze on the programme.

Her order prevents the transfer of funds, the processing of claims, and any payments, saying the pause was necessary to ensure that no money is “irreversibly disbursed” before the legal challenge is heard.

The ruling represents another setback for one of Trump’s most politically sensitive second-term initiatives, which has drawn criticism from Democrats, legal experts and some Republicans in Congress.

The fund was established by the Justice Department as part of a settlement linked to Trump’s civil lawsuit against the Internal Revenue Service over the leak of his tax returns by a former government contractor.

The administration said the programme was designed to compensate individuals who suffered from alleged government “weaponisation” and “lawfare” — terms Trump has used to describe what he calls politically motivated actions against conservatives and his supporters.

Opponents, however, argue that the fund lacks a clear legal basis, has minimal oversight, and could benefit Trump loyalists, including some defendants convicted over the January 6, 2021 attack on the US Capitol.

Brinkema’s order followed a lawsuit filed by plaintiffs including Andrew Floyd, a former federal prosecutor involved in January 6 prosecutions, and Jonathan Caravello, a California professor arrested during an immigration protest.

The plaintiffs described the initiative as a “collusive agreement” between Trump and his administration, arguing there was “no congressional authorization, no basis in law, and no accountability.”

The judge scheduled a hearing for June 12 to determine whether the freeze should remain in place.

There was no immediate response from Trump or the Justice Department after the ruling.

Although the formal application process for the fund has not yet begun, some individuals claiming unfair treatment by the government have already sought compensation.

A five-member board is expected to determine eligibility and payment amounts, but officials have not yet named its members or released criteria for claims.

Floyd, who previously worked in the now-disbanded Capitol Siege Section of the US Attorney’s Office in Washington, accused the administration of attempting to fast-track payments to political allies while targeting those who investigated them.

“The administration is gifting the people I helped investigate and prosecute after January 6 access to an illegally created process,” he said in a court declaration.

Trump, on his first day back in office last year, granted clemency to more than 1,500 people convicted over the Capitol riot, when his supporters stormed Congress in an attempt to overturn the 2020 election result.

The administration has also reportedly begun removing Justice Department press releases related to January 6 prosecutions, describing them as “partisan propaganda.”

Despite backing from Trump allies, the fund has raised concerns among some Republicans, with Senate leaders reportedly delaying a vote on an immigration enforcement funding bill over worries about potential payouts to January 6 defendants.

The case is one of several lawsuits seeking to halt the programme, including actions filed by injured Capitol police officers and government watchdog groups.