Politics

Trump Humiliated as Clinton Judge Blocks $1.8B Slush Fund

CASHING OUT

A district judge has temporarily stopped the creation of the “Anti-Weaponization Fund.”

Illo illustration of Donald Trump coming out of a bag of money cash in front of the US Capitol building during the January 6 insurrection
Photo Illustration by Elizabeth Brockway/The Daily Beast/Getty/Reuters

A federal judge temporarily halted the Trump administration’s plan to create a $1.8 billion “Anti-Weaponization Fund” to pay out people who claim they were politically targeted.

Critics have warned that the fund would be used to hand out millions of taxpayer dollars to those who stormed the U.S. Capitol on January 6 and even assaulted police officers.

District Judge Leonie Brinkema, who was appointed by President Bill Clinton, blocked the administration from taking any further actions to create or operate the fund, including transferring money to it or considering claims for payouts in a brief order handed down Friday.

She set a hearing date for June 12 at 10 am ET to hear arguments over whether she should take steps to further pause the fund for a longer period of time.

The Daily Beast asked the White House for comment on the fund being blocked.

A demonstrator holds a sign referencing the $1.776 billion fund to compensate people who claim they were unfairly targeted by the government, near an event hosted by VoteVets to "call on Congress to do everything in its power to stop Trump's Iran war," outside the U.S. Capitol on Wednesday, May 20, 2026.
A demonstrator holds a sign referencing the $1.776 billion fund to compensate people who claim they were unfairly targeted by the government outside the U.S. Capitol on Wednesday, May 20, 2026. Tom Williams/CQ-Roll Call, Inc via Getty Images

The Justice Department announced the creation of the $1.776 billion fund as part of a settlement after Donald Trump withdrew his $10 billion lawsuit against the IRS after a contractor leaked his and others’ tax documents to news publications during his first term.

The settlement was unprecedented in that the president was suing his own government, which then reached the agreement.

After the fund was announced, it was immediately hit with a series of legal challenges from individuals and groups who would not be able to receive payments.

The lawsuit in question was filed earlier this month seeking to halt both the creation and operations of the fund, arguing that the fund “rewards and incentivizes unlawful behavior and facilitates an astounding abuse of taxpayer funds.”

While the Trump administration has argued that anyone who believes they’ve been unfairly targeted can submit claims for the money, top officials have not ruled out the money being awarded to those who stormed the U.S. Capitol on January 6 and assaulted law enforcement officers, as well as Trump donors.

On Thursday, Treasury Secretary Scott Bessent, who oversees the IRS, referred any questions about the fund to Acting Attorney General Todd Blanche, the president’s former personal criminal attorney.

The way the fund was set up, Blanche is tasked with choosing the five commissioners who would review submitted complaints and dole out the cash.

But even some Republican lawmakers on Capitol Hill were deeply unconformable with the creation of the fund using taxpayer dollars without the weigh-in by Congress. Several have vowed to try and kill it when they return from recess.