US Judge Freezes Trump's $1.8B 'Slush Fund' for Allies
A federal judge has issued a temporary injunction preventing the Trump administration from moving forward with a $1.8 billion compensation fund, which detractors have criticized as a 'slush fund' benefiting President Donald Trump's political supporters. On Friday, US District Judge Leonie Brinkema halted any actions related to the establishment or management of the fund while she deliberates on a more permanent suspension. This ruling stops any transfers of funds, claims processing, and disbursements to ensure that no money is 'irreversibly disbursed' before the legal proceedings are addressed. Established by the Justice Department as part of a settlement in Trump's civil case against the Internal Revenue Service regarding the leak of his tax returns, the fund aims to compensate individuals impacted by what Trump describes as government 'weaponisation' and 'lawfare.' Critics contend it may benefit loyalists, including those convicted for their roles in the January 6 riots. This ruling represents another obstacle for one of Trump's most contentious initiatives in his second term, raising concerns among Democrats, legal analysts, and some Republican lawmakers.
Key facts
- Federal judge Leonie Brinkema temporarily blocked the $1.8 billion compensation package.
- The fund is criticized as a 'slush fund' for Trump's political allies.
- The order prevents money transfers, claim considerations, and disbursements.
- The fund was created by the Justice Department as part of a settlement of Trump's lawsuit against the IRS over leaked tax returns.
- The administration says it compensates victims of government 'weaponisation' and 'lawfare'.
- Opponents say it could reward loyalists, including January 6 defendants.
- The decision is a setback for Trump's second-term initiative.
- Democrats, legal experts, and some Republicans have expressed alarm.
Entities
Institutions
- Justice Department
- Internal Revenue Service
- Congress
Locations
- United States