A U.S. federal judge has issued an emergency temporary order blocking the launch of a controversial $1.8 billion government compensation fund designed for people who allege they were targeted for political investigations by former presidential administrations.
Issued in a concise two-page ruling Friday, the order prohibits the Department of Justice from moving forward with any actions to establish, administer, or distribute funds from the initiative — including accepting, reviewing or processing compensation claims — until a preliminary hearing is held on June 12.
The fund, branded as the “anti-weaponisation fund” by the DOJ, was announced publicly just one week prior. Its creation stems from a settlement agreement between the Biden administration and former President Donald Trump, crafted to end Trump’s $10 billion lawsuit against the Internal Revenue Service over the unauthorized leak of his personal tax returns. A little-noticed additional provision of the same agreement also permanently blocks the IRS from auditing past tax filings submitted by Trump, his immediate family members, and his business entities.
Though the official memorandum establishing the fund does not outline clear eligibility criteria for payouts, hundreds of supporters of the former president who faced criminal prosecution for their role in the January 6, 2021 U.S. Capitol riot have already publicly stated they intend to file compensation claims through the program.
From its announcement, the fund has sparked fierce cross-partisan backlash. Democrats and a number of Republican lawmakers have raised sharp objections, pointing out that the initiative was launched without explicit congressional authorization and would operate with almost no formal congressional or independent oversight. Senate Republican Majority Leader John Thune went on record recently saying he is not “a big fan” of the fund, adding that he remains unclear on how the claims process will even function.
The legal challenge that prompted Friday’s pause was filed in Virginia by two male plaintiffs who argue the fund is inherently discriminatory. The pair allege they themselves were targeted for political retaliation by the Trump administration, but argue the program’s structure will bar them from accessing any compensation, given the administration’s influence over how claims are adjudicated.
This lawsuit is not an outlier: it is one of multiple active legal challenges to the fund currently pending before federal courts across the country. Earlier this week, a coalition of 35 retired federal judges submitted an open letter to the judge overseeing the original Trump tax lawsuit, urging her to conduct a deeper, more rigorous review of the full terms of the settlement that created the fund.
The BBC has confirmed it submitted a request for comment from the White House regarding the court’s ruling, and as of this reporting, no response has been issued.