Overview
- A federal judge in Alexandria, Virginia, extended an injunction on Friday that bars the creation or operation of the $1.776–$1.8 billion fund and gave the Justice Department one week to file sworn declarations from Acting Attorney General Todd Blanche and Treasury Secretary Scott Bessent.
- The Justice Department has told Congress it will not move forward but has not formally rescinded the May 18 directive that set up the fund, no five-member commission was appointed, no claims were accepted, and no payments have been made.
- The fund was part of President Trump’s settlement of his lawsuit against the IRS and would have used executive settlement mechanisms to finance payouts, raising legal questions about bypassing congressional appropriations.
- Plaintiffs and public-interest groups sued to block the fund, arguing it could act as a taxpayer-funded slush fund and might benefit Trump allies and some people charged in the Jan. 6 attack, and Senators Cory Booker and Bill Cassidy filed an amicus brief urging a block.
- If the government files sworn, signed rescissions the judge may dismiss the case but if it does not the court will proceed with litigation and the dispute could trigger further judicial review of the settlement and closer congressional oversight.