Blanche faces lawsuits over $1.8B fund

The Justice Department on May 18 announced a $1.776 billion “Anti-Weaponization Fund” as part of a settlement of President Donald Trump’s lawsuit against the Internal Revenue Service. The department said Trump, Donald Trump Jr., Eric Trump and the Trump Organization would receive a formal apology but no direct monetary damages, and that the new fund would hear claims from others who say they were harmed by “weaponization and lawfare.” Todd Blanche, who is serving as acting attorney general while remaining deputy attorney general, has become the public face of the program as he fields questions about who could qualify, how payouts would be reviewed and whether people tied to the Jan. 6, 2021 attack on the Capitol could receive money. Blanche previously represented Trump in criminal cases and now leads the department in an acting capacity. (justice.gov) ### How did this fund get created? The settlement in Trump v. Internal Revenue Service was filed in the Southern District of Florida and took effect on May 18, 2026. DOJ said the case stemmed from the leak of Trump tax-return information and that the plaintiffs agreed to drop the lawsuit with prejudice in exchange for the apology and creation of the fund. (justice.gov) The DOJ press release said the money will come from the federal Judgment Fund, a permanent appropriation used to pay certain settlements and judgments. The department said the fund can award monetary relief or formal apologies, must report quarterly to the attorney general, may be audited at the attorney general’s direction and must stop processing claims by Dec. 1, 2028. (justice.gov) ### Why is Blanche at the center of the fight? Blanche testified before a Senate appropriations subcommittee this week and declined to make broad commitments about who would be excluded from the fund, according to coverage of the hearing. Mother Jones reported that Blanche would not commit that people who assaulted Capitol Police or Trump campaign donors would be barred, saying he was “not committing to anything beyond the settlement agreement.” (justice.gov) The New York Times reported on May 21 that Blanche’s handling of the fund has become a test of how he would run the department if he is chosen to lead it permanently. That scrutiny is sharpened by his dual role as acting attorney general and Trump’s former personal lawyer. ### Who is suing, and what are they trying to stop? Harry Dunn, a former U.S. Capitol Police officer, and Daniel Hodges, a Metropolitan Police officer who fought rioters on Jan. 6, sued to block the fund in federal court on May 20, according to reports on the filing. (motherjones.com) The suit argues the program is unlawful and points to the possibility that money could go to people who aided the attack on the Capitol. (nytimes.com) The challenge has given critics a concrete legal vehicle, because the DOJ documents themselves do not spell out a categorical bar on Jan. 6 defendants. DOJ has said there are “no partisan requirements” to file a claim, but it has not publicly released a detailed list of eligible or ineligible claimants. ### What did the “QAnon Shaman” say? Jacob Angeli-Chansley, the Arizona man known as the “QAnon Shaman,” said Jan. 6 defendants should reject the money. (newrepublic.com) Cronkite News reported on May 20 that Angeli-Chansley called the fund “blood money” and urged others tied to the Capitol riot not to accept compensation. That filing added an unusual split-screen to the dispute: police officers are trying to stop the fund in court, while at least one potential beneficiary is publicly denouncing it. (justice.gov) The result is that the fight is no longer confined to Democratic critics or outside watchdogs. ### What are the biggest legal questions in the documents? The settlement papers say the United States “FOREVER” releases and bars claims tied to matters that were or could have been raised in the case, the pending agency claims, or matters involving “Lawfare” and “Weaponization.” A related attorney general order says the government is barred from pursuing claims, reviews or appeals against the plaintiffs and related parties over covered matters, including some tax matters filed before the settlement’s effective date. (cronkitenews.azpbs.org) Those provisions are now likely to draw attention in court filings and congressional oversight. The fund’s quarterly reports go to the attorney general, and DOJ said any unspent money will revert to the federal government when the program ends on Dec. 1, 2028. (justice.gov 1) (justice.gov 2)