The Trump administration unveiled a $1.8 billion compensation fund on Tuesday, aimed at people who allege federal “weaponization.” Acting Attorney General Todd Blanche defended the scheme before the Senate, calling it “unusual” but consistent with past settlements. Critics note the pot draws from the Treasury’s Judgment Fund, a repository traditionally reserved for court‑ordered payouts, and could set a precedent for future administrations.

Justice Department veterans argue the plan breaches a 2025 directive signed by former AG Pam Bondi, which barred settlements that benefit third‑party groups not party to a case. The fund also grants blanket tax‑penalty immunity to President Trump, his sons and the Trump Organization—an unprecedented concession that former civil‑division director Jennifer Ricketts called a “shocking gift.” Lawmakers from both parties voiced concern over judicial oversight.

Blanche said five commissioners will soon be appointed to set eligibility rules, while quarterly expenditure reports will be released, subject to Privacy Act limits. Without a public roster, investors worry about opaque allocations of taxpayer money and potential lobbying pressures. The Treasury’s Judgment Fund now faces scrutiny as the $1.8 billion outlay reshapes how the federal government settles politically sensitive claims.