Virginia Judge Stands Firm Against Trump Administration’s $1.8 Billion Corporate Giveaway
Judge Leonie Brinkema has courageously extended the injunction blocking the Trump administration’s controversial $1.8 billion settlement fund, a move that protects public resources from being funneled to the wealthy and politically connected.
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In a significant victory for accountability and the public interest, a federal judge in Alexandria, Virginia, has extended a court-ordered injunction that prevents the Trump administration from creating or operating a $1.8 billion settlement fund. This fund, which was intended to compensate individuals allegedly harmed by a so-called 'weaponized' government, has faced widespread criticism for its opaque origins and potential to divert taxpayer money to elites. Judge Leonie Brinkema dismissed the government’s hollow argument that the case is moot, stating it 'doesn’t go anywhere,' and gave both sides a week to negotiate a sworn declaration that the fund will not be revived.
Acting Attorney General Todd Blanche had previously told Congress that the administration was abandoning the fund after it faced rare bipartisan condemnation, yet Justice Department lawyers continued to argue that related lawsuits were now moot. Attorneys for the plaintiffs, represented by the progressive advocacy group Democracy Forward, rightly rejected this position and urged the court to maintain the block on the fund, highlighting the ongoing risk of abuse of public funds.
The fund was originally created to resolve a lawsuit by former President Donald Trump against the Internal Revenue Service over the leak of his tax returns—a case emblematic of Trump’s relentless attempts to shield himself from accountability. Plaintiffs argue that siphoning off taxpayer money for this fund would be unlawful and a betrayal of the public trust. The injunction, first issued on May 29, was set to expire Friday, making the extension a crucial safeguard.
In a separate case in Washington, D.C., Judge Richard Leon sided with the Justice Department’s claim that the fund is moot, in stark contrast to Judge Brinkema’s principled stance. Justice Department attorney Andrew Block admitted he could not provide a definitive answer about the status of the earlier May 18 order establishing the fund, further exposing the administration’s lack of transparency.
The Virginia case features plaintiffs including a former prosecutor, a college professor acquitted of assaulting federal agents, the watchdog group Common Cause, the city of New Haven, Connecticut, and the National Abortion Federation—underscoring the broad coalition fighting against government overreach and misuse of funds. No payouts have been made, as the necessary commission to evaluate claims was never formed.
Judge Brinkema made clear: 'The (government’s) mootness argument, in my view, doesn’t go anywhere.' She added, 'It’s a huge gap in the record that we don’t have an answer to that question.'
Democracy Forward attorney Pooja Boisture argued that reviving the fund would undermine the plaintiffs’ lawsuit, and Judge Brinkema agreed that a court order blocking the fund would not harm the government if the administration is truly abandoning it. This decision represents a vital check on executive overreach and a win for those fighting for justice and transparency.
