DOJ Backs Away from $1.8 Billion 'Anti-Weaponization Fund' Amid Legal Challenges
A federal judge has blocked the fund's creation, demanding sworn written assurances—which the Justice Department has so far refused to provide.
The U.S. Department of Justice has stated it will not proceed with a $1.8 billion "Anti-Weaponization Fund" established as part of a settlement resolving President Donald Trump's lawsuit against the Internal Revenue Service (IRS). A federal judge in Virginia subsequently extended a temporary block on the fund, demanding sworn written assurances from senior officials that the program is terminated—a request the Justice Department has so far declined to fulfill.
Origin of the Fund
The fund was created as part of an out-of-court settlement of a $10 billion lawsuit filed by President Donald Trump against the IRS. The lawsuit alleged the unauthorized disclosure of Trump's tax returns by a government contractor.
The settlement, announced on May 18, 2025, included a formal apology from the government and allocated $1.776 billion to an "Anti-Weaponization Fund." Its stated purpose was to compensate individuals who claimed they were victims of "lawfare" or prosecutorial overreach, particularly under the previous administration.
"The fund was intended to compensate victims of alleged prosecutorial overreach."
Acting Attorney General Todd Blanche personally signed a May 19 addendum to the settlement that granted President Trump, his family members, and related business entities protection from tax audits and enforcement actions related to tax returns filed before the settlement. The addendum also barred the Department of Justice from prosecuting Trump and others for conduct arising out of "Lawfare and/or Weaponization"—a term the agreement did not define.
Legal Challenges and Judicial Action
Multiple lawsuits were filed to block the fund's creation, including actions by Democracy Forward, Citizens for Responsibility and Ethics in Washington (CREW), and other plaintiffs.
Virginia Case
U.S. District Judge Leonie Brinkema of the Eastern District of Virginia issued a temporary restraining order blocking the Department of Justice from taking any steps to create or operate the fund, including transferring money or accepting claims. A hearing was scheduled for June 12 to consider a longer-term block.
On June 12, Judge Brinkema extended the block by issuing a preliminary injunction. The judge stated that Acting Attorney General Todd Blanche's verbal assurance to a House panel that the fund was "not moving forward, period" was insufficient to dismiss the case.
Brinkema ordered Blanche and Treasury Secretary Scott Bessent to provide written sworn declarations within one week confirming the fund would not proceed.
The judge cited President Trump's subsequent public comments that he did not know if the fund was "fully dead" as a reason to maintain the injunction.
Washington, D.C., Case
In a separate lawsuit filed by CREW, U.S. District Judge Richard Leon denied a request for a temporary restraining order. Judge Leon accepted the Justice Department's representation that the fund was being scrapped, but warned the government not to "play possum" with the court and indicated he would consider a request for a longer-term injunction.
Justice Department's Position
The Justice Department has filed motions in both federal courts arguing the lawsuits are moot because the fund is not going forward. In its filings, the department stated the fund "is now not going forward" and that the plaintiffs lack standing to sue.
Acting Attorney General Todd Blanche testified to a House panel on June 2 that the government was "not moving forward with the fund, period." However, Blanche refused requests from lawmakers to put that commitment in writing.
On June 12, the Justice Department declined Judge Brinkema's request for sworn declarations, arguing that verbal assurances and signed court briefs should be sufficient and that requiring such declarations raised "serious separation of powers concerns."
Political Reactions
The fund faced bipartisan criticism from lawmakers, particularly over the possibility it could compensate individuals involved in the January 6, 2021, U.S. Capitol riot, including those who assaulted police officers. Acting Attorney General Blanche acknowledged that some individuals charged in connection with the riot could potentially be eligible for payments.
- Senate Republican leaders delayed consideration of a funding package partly due to concerns about the fund.
- House Speaker Mike Johnson met with President Trump at the White House to discuss the issue.
- President Trump defended the fund publicly, calling it "a beautiful thing," and stated he did not know if it was on hold or eliminated.
Current Status
No money has been disbursed from the fund. The five-member commission required to oversee disbursements was never formed, and no applications were accepted.
- The temporary restraining order issued by Judge Brinkema in Virginia expired when she issued the preliminary injunction.
- Judge Leon's order in Washington, D.C., did not include a temporary block.
The Justice Department has argued that the fund "is not going forward" but has not formally rescinded the order establishing it. President Trump has not unequivocally stated he supports the fund's cancellation.
Other provisions of the Trump-IRS settlement, including the protection from future tax audits, remain in effect.
A federal judge in Florida has also questioned the legality of the settlement and ordered Trump's attorneys to respond by June 12.