Judge blocks Trump's $1.78B anti-weaponization fund payouts

A federal judge on Thursday temporarily blocked the Trump administration from making any payouts from its $1.78 billion "Anti-Weaponization Fund," halting the initiative before a single claim had been processed.

The ruling adds to a string of legal setbacks for a fund critics say rewards political allies while targeting career law enforcement officials — an outcome with direct implications for former federal prosecutors in California who worked Jan. 6 cases.

U.S. District Judge Leonie Brinkema of the Eastern District of Virginia issued a temporary restraining order barring the administration from transferring money into the fund, processing claims or authorizing payouts, ABC7 Los Angeles reported Thursday. A hearing on whether to extend the order is set for June 12.

The fund was established by President Donald Trump as a settlement vehicle for lawsuits tied to IRS tax return leaks. Democracy Forward, a legal advocacy group, filed suit in Virginia arguing the fund lacks statutory authority and serves as a tool for political retribution.

"President Trump and his allies have long accused Democrats of using the government and the legal system as political weapons. In doing so, the (Trump) administration fails to acknowledge the unprecedented campaign of targeting individuals and entities for retribution on personal and ideological grounds that it has carried out," plaintiffs' lawyers from Democracy Forward wrote, according to ABC7 Los Angeles.

Andrew Floyd, a former assistant U.S. attorney who helped prosecute Jan. 6 Capitol riot defendants, filed a court declaration opposing the fund. "The President's targeting of me and others involved in January 6 prosecutions leaves our country in a very dark place, sending a message that insurrection and sedition will be protected (and even encouraged) as long as it is on behalf of this administration," Floyd said in a court filing, the outlet reported.

At least three separate lawsuits have challenged the fund. More than 1,600 people faced federal charges in connection with the Jan. 6, 2021, riot at the U.S. Capitol; more than 1,200 had been convicted before Trump issued sweeping pardons, commutations and orders to dismiss all pending cases. Jonathan Caravello, a professor at California State University, is among those named in litigation connected to the fund, ABC7 reported.

Brinkema, appointed by President Bill Clinton, found sufficient grounds for the restraining order. The fund's plaintiffs argued in court filings that its structure — governed by a five-member committee with broad discretion over payouts — is itself unconstitutional.

If Brinkema converts her order into a preliminary injunction at the June 12 hearing, the fund could remain frozen for months while the constitutional challenge works through federal court.