A long-simmering political controversy over a proposed $1.8 billion federal compensation fund took a new turn this week, as the U.S. Department of Justice confirmed it will follow a federal court’s ruling that temporarily halts the launch of the initiative tied to President Donald Trump. While the DOJ has pledged to abide by the court’s order, the department made clear in a public statement released Monday that it strongly objects to the decision that put the fund on ice.
The fund, branded the ‘anti-weaponisation fund’ by the Trump administration, emerged last month as part of a settlement agreement resolving a claim against the federal government over the unauthorized leak of Trump’s personal tax returns during previous administrations. Designed to offer financial compensation to individuals who say they were unfairly targeted and persecuted for political reasons by prior U.S. governments, the DOJ has framed the initiative as a long-overdue corrective for widespread institutional abuse. In a post on X Monday, the department emphasized that the fund is open to all eligible people regardless of political affiliation, saying it would accept claims from Democrats, Republicans, conservatives, independents, and voters with no party alignment alike.
The hold on the fund was issued last week by U.S. District Judge Leonie Brinkema, who put a temporary block on all work to establish and operate the $1.776 billion fund until a full preliminary hearing scheduled for June 12. Brinkema’s order bars the DOJ from taking any steps related to the fund, including accepting, reviewing, processing, or disbursing funds to claimants, during the waiting period. Prior to last week’s ruling, the DOJ had repeatedly expressed extreme confidence that the fund’s structure and authorization would stand up to legal scrutiny.
The court challenge that led to the order stemmed from a lawsuit filed in Virginia by two male plaintiffs who argued the fund is illegally discriminatory. The two men say they themselves were targeted for political retaliation by the Trump administration, but they believe the fund’s eligibility rules will bar them from receiving any compensation, despite the DOJ’s claims of open access. The lawsuit is not the only source of pushback against the initiative: the fund has drawn sharp criticism from lawmakers across the political aisle, with both Republican and Democratic members of Congress labeling it an unaccountable ‘slush fund’ that lacks proper oversight.
High-profile opposition has grown in recent days, with former Vice President Mike Pence—who served alongside Trump during his first term—adding his voice to critics over the weekend. Pence called the proposal a bad idea from its inception and urged the administration to scrap the plan entirely. Multiple sources familiar with the initiative confirm that a large share of expected claimants include supporters of Trump who were prosecuted for their role in the January 6, 2021, U.S. Capitol riot, as well as former members of Trump’s first-term inner circle who have faced federal investigations. When asked for comment on the court’s ruling this week, the White House deferred all questions to the Department of Justice.