Court Blocks Dismissal of Lawsuit Over $1.8 B Anti-Weaponization Fund

In January 2026 President Donald Trump sued the IRS for $10 billion after a contractor leaked his tax records. The case settled in May 2026, and Justice Department created a $1.776 billion “anti-weaponization” fund from Judgment Fund to compensate those who claim they were targeted by “weaponized” law enforcement. Attorney General Todd Blanche issued a May 18 memo establishing the fund and testified on June 2 that it was “not going forward, period.” The fund could benefit hundreds of individuals, including some convicted for the Jan. 6 Capitol attack.

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The Justice Department has not commented on the order. In filings it argued a written declaration that the fund is dead is “unnecessary,” relying on Blanche’s testimony. Judge Leonie M. Brinkema rejected that, noting government’s “refusal to accord a genuine degree of trustworthiness” and ordering a formal answer by July 17. President Trump has called the fund a “great idea,” and the administration continues to pursue other parts of the IRS settlement that grant broad legal immunity to president and his sons.

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Democracy Forward argues the fund would channel money to Trump allies and Jan. 6 participants. An amicus brief by California and 22 states says the settlement attempts to “commandeer the machinery of the judicial system” to enrich president’s circle. Rep. Jamie Raskin’s No Carte Blanche Act seeks to permanently bar any revival of the fund, citing Justice Department’s refusal to provide a written guarantee. Critics across the aisle have called it a “slush fund” that threatens public trust in the judiciary.

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The administration maintains fund is defunct, yet has not supplied a sworn written declaration, creating a factual dispute. Judge Brinkema’s order suggests fund could be reinstated, while the DOJ asserts no further steps will be taken. How supporters might receive compensation outside blocked fund remains unclear.

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• “not going forward, period” — Todd Blanche, Acting AG

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• “a civil suit does not necessarily become moot when the defendants agree to stop the conduct at issue in the litigation.” — Judge Leonie M. Brinkema

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• “Although Todd Blanche initially said the $1.8 billion slush fund would not move forward, his own Justice Department emphatically refuses to commit that promise to writing, despite repeated requests from Congress and the courts,” — Rep. Jamie Raskin, House Judiciary Democrat

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Justice Department must answer by July 17, with discovery to follow. Blanche’s confirmation hearing is expected to increase scrutiny of fund. No Carte Blanche Act is slated for House debate. Rulings will decide if fund can be revived or permanently barred.

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