Full Breakdown
Judge Denies Temporary Block on Trump Administration’s $1.8 B “Anti-Weaponization” Fund
6/12/2026, 1:29:39 AM
Core Event: Court Refuses to Halt Controversial Compensation Fund
U.S. District Judge Richard Leon rejected Citizens for Responsibility and Ethics in Washington’s (CREW) request for a temporary restraining order that would have stopped the Justice Department from proceeding with the $1.776 billion “anti-weaponization” fund. Citing Acting Attorney General Todd Blanche’s congressional testimony that the Department is “not moving forward with the fund, period,” Leon found the lawsuit “appears moot.” He concluded the hearing with a stern warning: “Don’t play possum with this court.” The judge reserved judgment on CREW’s separate request for a preliminary injunction.
Background & Context: Settlement-Driven Fund Creation
The fund originated from a settlement of President Donald Trump’s $10 billion lawsuit against the Internal Revenue Service over the leak of his federal tax returns. The May 2026 agreement required the Department of Justice to establish a $1.776–$1.8 billion reserve to compensate individuals who claim they were victims of “government weaponization.” The settlement also barred future IRS audits of Trump, his family and businesses and included $230 million in related civil claims. Immediately after announcement, the proposal drew bipartisan criticism for potentially rewarding Jan. 6 Capitol-riot defendants.
Key Figures & Groups
- Judge Richard Leon – U.S. District Judge (George W. Bush appointee) presiding over the D.C. case.
- Todd Blanche – Acting Attorney General who testified that the fund is dead.
- President Donald Trump – Publicly praised the fund as “a great idea” and said he would be “disappointed” if Congress did not approve it.
- CREW – Government-watchdog group that filed the lawsuit.
- Andrew Block – DOJ attorney questioned about the lack of a formal rescission.
- Nikhel Sus – CREW attorney challenging the fund’s charter.
Timeline of Legal Actions
- May 18, 2026 – DOJ issues order establishing the fund.
- May 29 – Judge Leonie Brinkema (Virginia) temporarily blocks any fund activity.
- June 2 – Blanche tells House Appropriations subcommittee the fund is not moving forward.
- June 3 – Trump states on “Meet the Press” that the fund is a “great idea.”
- June 5 – Judge Leon denies CREW’s TRO and issues “play possum” warning.
- June 12 – Brinkema’s order set to expire unless extended.
Data & Statistics
- Fund size: $1.776 billion (reported as $1.8 billion).
- Settlement components: $10 billion IRS suit, $230 million civil claims, audit-shield provision.
- Board deadline: Five-member board to be appointed by June 17; fund transfer by July 17.
- Current status: No board appointed, no claims submitted, no money disbursed.
Why It Matters: Potential Policy and Institutional Implications
If revived, the fund could channel taxpayer dollars to individuals convicted of assaulting police during the Jan. 6 attack, raising constitutional and transparency concerns. The controversy also spotlights the DOJ’s independence, given the fund’s creation through a settlement negotiated by the president’s own administration.
Official Statements & Responses
- Blanche (Acting AG): Asserted the DOJ “is not moving forward with the fund, period.”
- Trump (President): Called the fund “a great idea” and warned he’d be “disappointed” if Congress failed to approve it.
- Leon (Judge): Declared the case moot but warned the DOJ against reviving the fund without court oversight.
- CREW: Argues the fund’s charter remains in effect and that the DOJ’s verbal statements are insufficient.
- Block (DOJ attorney): Could not explain why the May 18 order establishing the fund had not been formally rescinded.
Criticism & Opposition
Democrats and several Republicans labeled the proposal a “slush fund” and “brazenly illegal.” CREW’s filing emphasized that, without a written rescission, the Department could “illegally siphon” nearly $1.8 billion. Critics also highlighted the risk of compensating Jan. 6 participants.
Conflicting Reports & Gaps
- Verbal vs. written commitment: Blanche’s congressional remarks conflict with the absence of a formal rescission of the May 18 order.
- Presidential stance: Trump’s public support contradicts the DOJ’s claim the fund is dead.
- Implementation: No board or payout process has been established, leaving the fund’s operational status ambiguous.
Verbatim Quotes
- “Don't play possum with this court.” — Judge Richard Leon
- “We are not moving forward with the fund, period.” — Todd Blanche, Acting Attorney General
- “If it was up to me, I'd pay them the kind of money that they deserve. People have been destroyed. Lives have been destroyed,” — President Donald Trump
- “Millions of taxpayer dollars could now go to the insurrectionists—later pardoned by President Trump—who brutally attacked police officers and stormed the U.S. Capitol to halt the peaceful transfer of presidential power on January 6, 2021,” — Donald Sherman, CREW President
- “I don’t know the reason for that,” — Andrew Block, DOJ attorney
What’s Next: Ongoing Litigation and Potential Oversight
Judge Leon will rule on CREW’s request for a preliminary injunction. Judge Brinkema’s temporary block expires on June 12, pending extension. Separate lawsuits in Virginia and Florida continue to probe the settlement’s legality and the DOJ’s adherence to court orders.
