The Justice Department unveiled a $1.776 billion fund to compensate alleged victims of federal 'weaponization,' a move tied to President Trump dropping lawsuits against the IRS. The administration will draw the money from the congressional Judgment Fund, an unlimited pot for settling government suits, and deposit it into a new, separately managed account.

Todd Blanche, the acting attorney general, will appoint a five-member board to oversee disbursements for administrative costs and claims. Officials provided few details on eligibility criteria or evaluation processes, prompting critics to label it a potential 'slush fund' for Trump allies, including Jan. 6 defendants.

A former Justice official conceded the legal mechanism is sound but called the policy 'horrible,' citing Congress's long-standing neglect in restricting Judgment Fund use. The fund will accept claims until December 2028 and revert leftover balances to the government. Its creation resolves an imminent court deadline in Trump's $10 billion IRS leak suit, which a judge had questioned as a potential self-dealing controversy.