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Judge Blocks Trump's $1.8 Billion Prosecution Compensation Fund

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Judge Leonie M. Brinkema barred the Trump administration from establishing a $1.8 billion fund meant to compensate individuals claiming unfair government prosecution. The ruling follows conflicting signals from the White House, where President Trump expressed his love for the idea despite Acting Attorney General Todd Blanche telling Congress the plan was shelved.

This fund emerged from a strange settlement of a $10 billion lawsuit Trump filed against the I.R.S. over leaked tax data. The deal granted the president and his family broad protections from tax investigations, but critics argue the compensation program would funnel taxpayer money to January 6 rioters while excluding those harmed by Republican policies.

Judge Brinkema demanded a signed declaration under penalty of perjury from Blanche and Treasury Secretary Scott Bessent to prove the fund is dead. Meanwhile, Judge Kathleen M. Williams is investigating if the entire settlement was a fraudulent act designed to avoid oversight, as Trump effectively acted as both plaintiff and defendant.

Democracy Forward and several senators challenged the program for operating outside constitutional spending safeguards. The court now requires a formal guarantee to ensure the administration is not playing possum with the judiciary regarding the fund's status.