Overview
- U.S. District Judge Leonie Brinkema extended the court order keeping the proposed $1.7–$1.8 billion fund blocked and gave parties one week to agree on a sworn statement from Acting Attorney General Todd Blanche that the plan is abandoned.
- The Justice Department has told courts the cases are moot after Blanche told Congress the administration is not moving forward with the fund, but plaintiffs say a public statement is insufficient without a formal, sworn rescission.
- No commission has been appointed and no money has been disbursed from the Treasury or the DOJ Judgment Fund while litigation continues and the injunction remains in place.
- Plaintiffs argue the settlement would let the executive divert taxpayer dollars without congressional approval and could funnel payments to politically connected individuals, a claim that underpins their suits alleging violations of appropriations law and other statutes.
- The dispute highlights how the long‑standing Treasury Judgment Fund works: it lets the government pay settlements without new appropriations, a practice that raises separation‑of‑powers and oversight concerns when used for large, politically sensitive payouts.