Trump launches $1.8bn fund

President Donald Trump’s administration has created a nearly $1.8 billion “Anti-Weaponization Fund” to compensate people who say they were victims of government “weaponization,” according to the Justice Department and court filings. The fund was set up as part of a settlement resolving Trump’s lawsuit against the IRS and Treasury Department over leaked tax information, and outside legal experts told PBS it is unprecedented in scale and structure. Within a day of the fund’s announcement, two police officers who fought rioters at the U.S. Capitol on January 6, 2021, sued to block it. The new fight has also drawn attention to Acting Attorney General Todd Blanche, who signed both the fund arrangement and a separate addendum that multiple outlets reported bars future IRS audits of Trump, his family and related businesses. ### How was the fund created? The Justice Department announced the fund on Monday as part of a settlement of Trump’s lawsuit over the disclosure of his tax records. PBS reported the fund is worth nearly $1.8 billion, while CBS and CNBC put the figure at $1.776 billion, and said it is intended to create a process for claims by people alleging “weaponization” and “lawfare.” NBC News reported Trump agreed to drop a $10 billion lawsuit tied to the leaked records in exchange for the settlement. Todd Blanche said in a statement cited by CBS that the fund would “provide a systematic process to hear and redress claims of others who suffered weaponization and lawfare.” ### Who could seek money from it? January 6 defendants are among the people who could potentially seek compensation, according to PBS, CBS and other outlets that reviewed the fund’s stated purpose and likely claim criteria. PBS reported legal experts raised questions about whether the fund could be used to reward Trump allies and supporters, including people who took part in the Capitol riot. Jacob Angeli-Chansley, the defendant known as the “QAnon Shaman,” publicly urged other January 6 defendants not to accept money from the fund, according to Cronkite News, which described him calling it “blood money” in social media posts. ### Why are legal experts challenging it? Legal experts told PBS the fund is unprecedented and may be unlawful because it directs a large pool of taxpayer-backed money to a category of claimants defined by alleged political grievance rather than by a standard compensation program created by Congress. The New York Times, cited in the source briefing, separately reported the mechanism may conflict with past practice and policy. Former Capitol Police officer Harry Dunn and Metropolitan Police officer Daniel Hodges filed suit on Wednesday in federal court in Washington. Politico, PBS, ABC News and CNBC reported the complaint argues the fund is an illegal “slush fund” that could benefit Proud Boys members and January 6 rioters. The lawsuit says the fund’s existence sends a message that people who commit violence in Trump’s name could be rewarded, according to PBS and CNBC. Dunn and Hodges are asking a judge to declare the fund unlawful, unwind transfers used to create it and block future payouts. ### What does Todd Blanche have to do with the separate IRS controversy? Todd Blanche, now acting attorney general, signed a one-page addendum to the Trump IRS settlement that appears to bar the IRS from auditing Trump, his family and affiliated businesses over returns filed before May 18, 2026, according to Politico, ABC News and PolitiFact. UPI reported the document says the IRS is “forever barred” from such audits. The New York Times, cited in the source briefing, reported Blanche has taken a more combative role inside the administration as the fund fight has grown. Blanche’s dual role in the fund and the audit addendum has made him a central figure in both controversies. ### What happens next in court? The Washington lawsuit filed by Dunn and Hodges is now the clearest immediate test of the fund’s legality. ABC News and PBS reported the officers are seeking emergency court action to stop the government from moving money and setting claim rules before payments begin. Congressional scrutiny is also building. USA Today reported Senator Chuck Grassley defended the fund on Thursday, while the Washington Examiner reported some Senate Republicans were exploring guardrails in pending budget legislation. The next concrete step is the federal court fight in Washington, where Dunn, Hodges, Trump, Blanche and Treasury Secretary Scott Bessent are named participants.