Judge denies request to block $1.8 billion anti-weaponization settlement fund

A U.S. District Judge in Washington denied a request from the watchdog group Citizens for Responsibility and Ethics in Washington to temporarily block the Trump administration’s $1.776 billion settlement fund intended for people who say they were harmed by government actions. The judge said he would consider a separate request for a preliminary injunction that could halt payouts on a more permanent basis.

The administration argues the lawsuit is moot after Acting Attorney General Todd Blanche told Congress the fund would be scrapped. Judge Richard Leon, a former appointee of President George W. Bush, accepted Blanche’s statement for now and questioned why the May 18 order establishing the fund had not been formally rescinded.

"Don’t play possum with this court," Leon warned a government attorney at the close of the hearing.

A separate Virginia judge has already issued a temporary block on the fund’s operations, an order that is set to expire Friday unless extended. The Justice Department has not yet formed the commission that would determine eligibility criteria, and no money has been disbursed.

During a House hearing, Blanche said the administration was not moving forward with the fund, prompting Rep. Grace Meng to ask if that decision was final. Blanche affirmed it was.

Attorney Andrew Block, representing the Justice Department, said Blanche’s congressional statements rendered the watchdog’s claims moot and questioned the plaintiffs’ legal standing. Plaintiffs’ counsel Nikhel Sus noted that President Trump later indicated the fund remained a “legally operating entity.”

Other related litigation includes a Florida judge ordering Trump’s lawyers to respond to allegations that the president abandoned his IRS lawsuit to avoid scrutiny. In Virginia, the advocacy group Democracy Forward continues to seek a court order halting the fund’s implementation.