Trump DOJ Pulls Plug on $1.8 Billion ‘Anti-Weaponization’ Fund

Trump Administration Ends $1.8 Billion Fund After Court Blocks Disbursements

The Department of Justice announced it will not proceed with a nearly $1.8 billion fund established through a settlement in a lawsuit filed by President Donald Trump against the Internal Revenue Service. The decision follows temporary court orders in two federal districts that halted action on the fund and raised questions about the underlying settlement.

On May 18, 2026, the Trump administration dropped a $10 billion lawsuit against the IRS that alleged improper disclosure of the president’s tax returns. The settlement included creation of the fund, which the DOJ described as compensation for individuals who had been targeted or subjected to legal actions during the prior administration. The fund was structured to be available to applicants regardless of political affiliation.

A federal judge in the Eastern District of Virginia issued a temporary order on May 30, 2026, preventing any payouts from the fund. In a separate proceeding in Florida, another judge reopened the original IRS case and directed the parties to submit briefs addressing whether the settlement reflected collusion and whether the litigants remained adverse. Rather than appeal the Virginia ruling, the DOJ stated on June 1 that it would comply with the court order and discontinue the fund.

The DOJ posted a statement on X asserting disagreement with the Virginia decision but confirming it would not move forward. The statement noted the fund had been intended to address claims of harm to a range of individuals, including Democrats, Republicans, conservatives, and independents.

The fund had drawn opposition during congressional consideration of a reconciliation bill, with members from both parties raising objections. Two police officers involved in the January 6, 2021, Capitol events filed a separate lawsuit seeking to block disbursements. A January 6 defendant who had been identified as a potential recipient stated that termination of the fund should lead the department to conduct a broader review of government actions in those cases.

The sequence began with the May 18 dismissal of the IRS litigation. The DOJ had previously publicized the settlement terms, after which media outlets and Democratic lawmakers referred to the arrangement as an “anti-weaponization” fund. Court filings and public statements from the administration described the fund’s purpose as addressing alleged prior government conduct, while critics in Congress questioned both the settlement process and the mechanism for distributing funds.

No payments had been made from the account before the Virginia court order. The administration’s choice not to pursue further litigation leaves the settlement’s status to be addressed through the Florida proceedings. The episode occurred against the backdrop of ongoing litigation and congressional oversight related to January 6 prosecutions and IRS practices.