US District Judge Leonie Brinkema issued a temporary order on May 29 blocking the Trump administration from creating or operating a $1.8 billion compensation fund for allies, halting fund transfers, claims processing, and payments during ongoing legal review [1]. The freeze aims to prevent irreversible disbursement of funds before the court resolves the challenge [2, 1].
The fund was established as part of a settlement in former President Trump's civil lawsuit against the IRS over leaked tax returns [2]. The administration maintains the fund's purpose is to compensate individuals harmed by government "weaponisation" and "lawfare" targeting conservatives and Trump supporters [2].
Critics have denounced the fund as a "slush fund" benefiting Trump’s political allies [2, 1]. Opponents warn it may reward loyalists, including defendants convicted in connection to the January 6 riots [2].
Judge Brinkema’s order bars any transfer of money into the fund as well as the consideration of claims or disbursement of payments until further court action [2, 1]. The legal proceedings continue as the judge contemplates a longer pause before deciding whether the fund can proceed.
The Trump administration has not publicly responded to the temporary freeze as of today.
