A US federal judge has temporarily stopped the Trump administration from moving forward with a controversial $1.8 billion compensation fund linked to claims of government “lawfare”.
US District Judge Leonie Brinkema of the Eastern District of Virginia issued the ruling on Friday, ordering that no further steps be taken to establish or operate the fund while the case is reviewed in court. A hearing on whether the block should be extended is set for June 12.
The fund was created following a settlement involving President Donald Trump and the Internal Revenue Service (IRS), after Trump alleged that his private tax records were improperly leaked by a former government contractor. Although the contractor was not an IRS employee, Trump argued the agency should still be held responsible.
The Justice Department recently announced the compensation scheme as part of the settlement, framing it as a response to alleged political targeting of Trump and his allies. However, critics say the fund risks becoming a politically driven payout system.
Legal advocacy group Democracy Forward filed a lawsuit arguing the initiative could be used to reward political supporters while excluding opponents. The group and other plaintiffs, including former law enforcement officials connected to January 6-related cases, claim the program is biased and lacks legal safeguards.
Concerns have also been raised in Congress over whether individuals involved in the January 6, 2021 Capitol attack could qualify for payments under the scheme. Some lawmakers have warned the fund could be used to compensate rioters, while others argue it may also extend to people who say they were unfairly targeted by federal investigations.
The Justice Department has not yet established the commission that would oversee payouts, meaning no money has been distributed so far.
Multiple lawsuits challenging the fund are currently moving through federal courts, with further hearings expected in the coming weeks.

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