{"id":248424,"date":"2026-05-30T01:22:20","date_gmt":"2026-05-30T01:22:20","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ny\/248424\/"},"modified":"2026-05-30T01:22:20","modified_gmt":"2026-05-30T01:22:20","slug":"federal-judge-bars-trump-from-immediately-setting-up-1-8-billion-fund-4","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ny\/248424\/","title":{"rendered":"Federal Judge Bars Trump From Immediately Setting Up $1.8 Billion Fund"},"content":{"rendered":"<p class=\"css-ac37hb evys1bk0\">A federal judge barred the government on Friday from taking steps to launch President Trump\u2019s $1.8 billion fund, for now prohibiting the establishment of the fund, which is intended to pay people the administration finds were harmed by the federal government.<\/p>\n<p class=\"css-ac37hb evys1bk0\">The brief <a class=\"css-yywogo\" href=\"https:\/\/storage.courtlistener.com\/recap\/gov.uscourts.vaed.596617\/gov.uscourts.vaed.596617.31.0.pdf\" title=\"\" rel=\"noopener noreferrer nofollow\" target=\"_blank\">order<\/a> by Judge Leonie M. Brinkema of the Federal District Court for the Eastern District of Virginia prohibits the government from establishing the fund or processing disbursements at least until a hearing is held in June in a pending lawsuit challenging its legality.<\/p>\n<p class=\"css-ac37hb evys1bk0\">The order came in a case brought by a group of individuals and entities who say they have faced partisan attacks by the Trump administration but who say they expect to be excluded from accessing the fund.<\/p>\n<p class=\"css-ac37hb evys1bk0\">The halt provided the first meaningful, if potentially temporary, roadblock to efforts to compensate the president\u2019s political allies since plans for the fund were <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2026\/05\/18\/us\/politics\/trump-irs-lawsuit.html\" title=\"\" rel=\"nofollow noopener\" target=\"_blank\">formalized<\/a> this month. At least two other lawsuits challenging the fund have also been filed in the District of Columbia and in California, and a number of lawmakers, including <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2026\/05\/19\/us\/politics\/trump-settlement-fund-congress.html\" title=\"\" rel=\"nofollow noopener\" target=\"_blank\">prominent Republicans<\/a>, have publicly objected to its aims.<\/p>\n<p class=\"css-ac37hb evys1bk0\">Mr. Trump has celebrated the <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2026\/05\/18\/us\/politics\/trump-anti-weaponization-fund.html\" title=\"\" rel=\"nofollow noopener\" target=\"_blank\">fund<\/a> as a source of relief for victims of \u201cweaponization and lawfare\u201d under Democratic administrations, and a number of Mr. Trump\u2019s allies, including rioters convicted of crimes during the Jan. 6, 2021, attack on the U.S. Capitol, have <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2026\/05\/20\/us\/politics\/jan-6-rioters-trump-fund-payouts.html\" title=\"\" rel=\"nofollow noopener\" target=\"_blank\">announced plans<\/a> to apply.<\/p>\n<p class=\"css-ac37hb evys1bk0\">Judge Brinkema, a Clinton appointee, described the order as necessary to preserve the status quo and to \u201censure that no funds are irreversibly disbursed\u201d until she holds an initial hearing in the case on June 12. Until then, her order prohibited \u201cthe transferring of money to the fund; the consideration of any claims submitted to the fund; and the disbursing of any funds from the fund.\u201d<\/p>\n<p class=\"css-ac37hb evys1bk0\">The fund originated earlier this month with a remarkable <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2026\/05\/20\/us\/politics\/trump-fund-legal-questions.html\" title=\"\" rel=\"nofollow noopener\" target=\"_blank\">deal<\/a> Mr. Trump struck to conclude a case he had filed against the Internal Revenue Service over the leak of his tax information between 2018 and 2020.<\/p>\n<p class=\"css-ac37hb evys1bk0\">In response, the Justice Department announced that $1.776 billion would be set aside for other individuals who claimed to have been victimized by the federal government. Department officials said people would be able to apply for compensation to a five-member commission whose membership Mr. Trump would control.<\/p>\n<p class=\"css-ac37hb evys1bk0\">The Justice Department has argued that the commission tasked with evaluating claims will assess each neutrally, and that the payment structure is legal under the Judgment Fund, an unlimited source of money that Congress authorized the Justice Department to use to settle lawsuits filed against the federal government.<\/p>\n<p class=\"css-ac37hb evys1bk0\">A spokesman for the department did not immediately respond to a request for comment about the ruling on Friday.<\/p>\n<p class=\"css-ac37hb evys1bk0\">The Justice Department has said that Mr. Trump will not personally draw money from the fund. But as part of the deal, the department also granted Mr. Trump and his family immunity from ongoing audits of their taxes, an arrangement that could save the family and their businesses <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2024\/05\/11\/us\/trump-taxes-audit-chicago.html\" title=\"\" rel=\"nofollow noopener\" target=\"_blank\">as much as $100 million<\/a>.<\/p>\n<p class=\"css-ac37hb evys1bk0\">The group that brought the lawsuit includes a former federal prosecutor who said he was fired for his work on the Jan. 6 investigation, and a professor in California who was arrested while protesting an immigration raid. In court filings, they contend that they have been the victims of genuine partisan persecution, but under Mr. Trump.<\/p>\n<p class=\"css-ac37hb evys1bk0\">Other plaintiffs include the City of New Haven, which said the Trump administration had slashed its federal funding in retaliation for its \u201csanctuary city\u201d law enforcement policies, and the National Abortion Federation, which contended its members could face violent extremism by right-wing activists empowered by the fund.<\/p>\n<p class=\"css-ac37hb evys1bk0\">Lawyers representing the coalition <a class=\"css-yywogo\" href=\"https:\/\/democracyforward.org\/wp-content\/uploads\/2026\/05\/Slush-Fund-PI_Dist.E.D.Va_._1-26-cv-01399_25.pdf\" title=\"\" rel=\"noopener noreferrer nofollow\" target=\"_blank\">argued<\/a> that the fund appeared to be a political project designed to enrich supporters of the president, potentially including some who had been convicted of breaking the law in an effort to keep Mr. Trump in power following the 2020 election.<\/p>\n<p class=\"css-ac37hb evys1bk0\">In a sworn <a class=\"css-yywogo\" href=\"https:\/\/storage.courtlistener.com\/recap\/gov.uscourts.vaed.596617\/gov.uscourts.vaed.596617.25.2.pdf\" title=\"\" rel=\"noopener noreferrer nofollow\" target=\"_blank\">statement<\/a> in the case, Andrew Floyd, the former federal prosecutor, described working his way up through the Justice Department since 2014, culminating in his work leading a task force investigating assaults on police officers after the Jan. 6 riot. Mr. Floyd said he was fired in 2025 despite an otherwise stellar record in the department.<\/p>\n<p class=\"css-ac37hb evys1bk0\">\u201cThe president\u2019s \u2018anti-weaponization fund\u2019 is not a serious attempt to redress the weaponization and abuse of government power,\u201d he wrote. \u201cWhile I have been targeted by the abusive exercise of government power, the elected official responsible is a Republican, not a Democrat, and by its own terms the fund is not available to me.\u201d<\/p>\n<p class=\"css-ac37hb evys1bk0\">Skye Perryman, the president of Democracy Forward, a legal nonprofit representing the assorted plaintiffs, described the order as \u201ca victory for transparency, the rule of law, and the American people.\u201d<\/p>\n<p class=\"css-ac37hb evys1bk0\">\u201cNo administration has the authority to spend public money through a political rewards program that Congress never authorized,\u201d she said in a statement.<\/p>\n","protected":false},"excerpt":{"rendered":"A federal judge barred the government on Friday from taking steps to launch President Trump\u2019s $1.8 billion fund,&hellip;\n","protected":false},"author":2,"featured_media":248357,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[35],"tags":[18077,97044,83254,17077,1452,31482,17074,97045,75,84,83,9,24,63,24434,1069,1876],"class_list":["post-248424","post","type-post","status-publish","format-standard","has-post-thumbnail","category-manhattan","tag-18077","tag-brinkema","tag-compensation-for-damages-law","tag-courts-and-the-judiciary","tag-donald-j","tag-federal-aid-us","tag-federal-courts-us","tag-leonie-m","tag-manhattan","tag-manhattan-headlines","tag-manhattan-news","tag-new-york","tag-new-york-city","tag-nyc","tag-storming-of-the-us-capitol-jan","tag-trump","tag-united-states-politics-and-government"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/248424","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/comments?post=248424"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/248424\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media\/248357"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media?parent=248424"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/categories?post=248424"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/tags?post=248424"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}