DOJ Drops $1.8 Billion Fund After Judges Block Payouts

A federal judge’s order has frozen a nearly $1.8 billion settlement fund intended to compensate people who claim they were targeted by prior government investigations. The Justice Department said it will comply rather than fight the ruling in court for now, leaving the program’s future in doubt.

The fund originated in a May settlement that ended President Trump’s $10 billion lawsuit against the IRS over the disclosure of his tax returns. Under the agreement the government would use the Judgment Fund, a long-standing congressional appropriation, to pay claims from individuals alleging political persecution. Two separate federal judges—one in Virginia and one in Florida—then issued temporary orders halting any work on the program, citing questions about the settlement’s legitimacy and possible collusion between the parties.

Republican lawmakers have pressed the administration for more details on how the fund would operate. The DOJ responded on social media that it disagreed with the Virginia ruling but would abide by it. Plaintiffs in the Virginia case, represented by Democracy Forward, argued the arrangement bypassed normal congressional oversight. A January 6 defendant who expected to benefit from the fund called instead for a broader investigation into past prosecutions.

The pause leaves unresolved whether any compensation mechanism will survive judicial scrutiny and whether the underlying allegations of selective enforcement will receive formal review. Both sides now await further court filings due by mid-June.