US Judge Blocks Trump’s $1.8bn Compensation Package for Allies

A federal judge has temporarily blocked the administration of President Donald Trump from proceeding with a controversial $1.8 billion compensation fund criticised by opponents as a potential “slush fund” for Trump’s political allies.

US District Judge Leonie Brinkema issued the order on Friday, preventing the administration from creating or operating the fund while the court considers whether a longer suspension should be imposed.

The ruling halts the transfer of money into the program, the processing of claims and the disbursement of any payments, with the judge stating that the freeze was necessary to prevent funds from being “irreversibly disbursed” before the legal dispute is resolved.

The compensation package was established by the United States Department of Justice following the settlement of Trump’s civil lawsuit against the Internal Revenue Service over the leak of his tax returns by a former government contractor.

According to the administration, the initiative was designed to compensate individuals allegedly affected by what Trump has repeatedly described as government “weaponization” and “lawfare” targeting conservatives and his supporters.

Critics, however, argue that the fund lacks congressional approval, legal clarity and sufficient public oversight. Opponents also fear it could be used to financially reward Trump loyalists, including individuals convicted over the January 6, 2021 attack on the US Capitol.

The lawsuit challenging the fund was filed by a group of plaintiffs that included Andrew Floyd, a former federal prosecutor involved in January 6 cases, and Jonathan Caravello, a California professor arrested during an immigration protest.

The plaintiffs described the arrangement as a “collusive agreement” lacking legal authority and accountability.

Judge Brinkema scheduled a hearing for June 12 to determine whether the temporary freeze should remain in place pending further legal proceedings.