Trump faces lawsuits over $1.8B fund

President Donald Trump’s administration is facing a widening legal and political fight over a new Justice Department compensation program created as part of the settlement of Trump’s lawsuit against the Internal Revenue Service. The Department of Justice announced on May 18 that it had established a $1.776 billion Anti-Weaponization Fund after Trump, Donald Trump Jr., Eric Trump and the Trump Organization agreed to drop their $10 billion IRS case. (cnbc.com) The department said the fund would hear claims from people who say they suffered “weaponization and lawfare” under the federal government. (cnbc.com) Within days, lawsuits were filed in federal court, lawmakers in both parties objected, and would-be applicants began trying to get in line before the rules were finished. (abcnews.com) ### How was the fund created in the first place? The Justice Department said on May 18 that the fund was part of the settlement in *Trump v. Internal Revenue Service*, the case over the leak of Trump’s tax returns. Under that settlement, Trump and the other plaintiffs would receive a formal apology but no direct damages payment, while the department would create a separate process for other claimants. The DOJ said the money would come from the judgment fund, a permanent appropriation used to settle and pay certain cases. Acting Attorney General Todd Blanche said the department was setting up “a lawful process” for victims of “lawfare and weaponization” to seek redress, and the department said any money left over would revert to the federal government. (justice.gov) ### Why are people suing over it already? Two new lawsuits were filed on May 22 in federal courts in Washington and Virginia, CNBC reported, and ABC News said the fund is now at the center of three federal lawsuits. The complaints argue that the program was created without congressional authorization and violates federal law; one suit also raises constitutional objections, and another alleges violations tied to federal records and access laws. (justice.gov) One Virginia case was brought by a group that included former federal prosecutor Andrew Floyd, Common Cause, the National Abortion Federation, the City of New Haven, Connecticut, and Jonathan Caravello, a California State University Channel Islands professor who was acquitted after being charged in connection with a protest during an immigration raid. (justice.gov) CREW filed a separate challenge, calling the program “a jaw-dropping act of presidential corruption,” according to ABC News. ### Who is trying to apply for the money? ABC News reported that Trump allies and Jan. 6 defendants were already preparing claims for the $1.776 billion fund. Mike Lindell told ABC he hoped MyPillow employees could receive compensation, and Enrique Tarrio was identified as among those interested in seeking payment. (cnbc.com) NBC News reported on May 21 that applications were already arriving even though no commissioners had yet been chosen and no formal claims process was in place. NBC also reported that Michael Cohen was among those seeking to apply, and that the department had circulated an overview saying “tens of millions of Americans” could be eligible. (cnbc.com) ### What are Trump officials saying in defense of the program? Todd Blanche said the department was trying to “make right the wrongs” done by prior government actions and said the fund would provide a systematic process for claims. DOJ official Trent McCotter said the use of government power to target people for political, personal or ideological reasons “should not be tolerated by any Administration.” (abcnews.com) The New York Times reported on May 22 that Trump, Vice President JD Vance and Blanche made inaccurate claims while defending the arrangement, including claims about precedent and the nature of the settlement. PolitiFact also said the administration’s comparison to the Keepseagle settlement fund omitted key differences. (nbcnews.com) ### Why are Republicans objecting too? Sen. Mitch McConnell called the fund “utterly stupid, morally wrong” after Blanche met with Republican senators on May 21. Sen. Thom Tillis called it “stupid on stilts” and, in separate NBC remarks, a “payout pot for punks,” saying taxpayers could end up compensating people who assaulted police officers at the Capitol. (justice.gov) Rep. Jamie Raskin, the top Democrat on the House Judiciary Committee, introduced legislation this week to bar federal money from being used for the fund, while CNBC reported that several members of Congress had moved to block it. Blanche told some Republican senators, according to CNBC, that the money was “not going toward people who attack policemen,” but the scope of eligible claims remains unsettled. (nytimes.com) ### What happens next? The settlement gives Blanche 30 days from May 18 to appoint five commissioners to run the program, according to ABC and NBC. The Justice Department said the fund must stop processing claims no later than December 1, 2028, while NBC reported the money would have to be distributed by the end of Trump’s term if courts or Congress do not block it first. (cnbc.com) (abcnews.com) (thehill.com)