A newly established nearly $1.8 billion fund, drawn from taxpayer money, faces immediate legal challenges as critics argue it unconstitutionally diverts public funds and usurps Congress' authority over national finances. The fund, announced five days ago, is intended for allies of President Donald Trump who claim they were wrongly targeted by the government. Lawsuits were filed same day to block payouts from the fund, with plaintiffs asserting it violates federal laws and the Constitution.
The fund's creation stems from an extraordinary settlement between the Trump administration and President Trump, one of his adult sons, and the Trump Organization. This settlement resolved a lawsuit they initiated in January over the unauthorized disclosure of Trump’s tax information years ago. The money is being drawn from the Justice Department’s Judgment Fund, a pool of taxpayer money Congress set aside for government settlements.
Executive Seizes Public Purse
The new legal challenge contends that the Trump administration’s decision to draw from the Judgment Fund is unlawful. Plaintiffs argue the underlying legal case was “meritless” given the president's unique role as both a plaintiff and the head of the executive branch agencies named as defendants. Furthermore, the lawsuit asserts that the fund violates the Constitution by usurping Congress’ authority over the country’s purse strings, effectively bypassing the legislative body responsible for controlling national expenditures. Skye Perryman, president and CEO of Democracy Forward and an attorney for the plaintiffs, stated that this “latest attempt by the Trump-Vance administration to make grift great again is profoundly unlawful and will not withstand judicial scrutiny.”
Rewarding Political Loyalty
The fund is designed to review claims submitted by individuals who state they were unfairly targeted by previous administrations. Five commissioners, selected by the acting attorney general, will oversee its operation. Among the plaintiffs challenging the fund are former Assistant U.S. Attorney Andrew Floyd, who prosecuted Capitol riot cases before his firing last year by then-Attorney General Pam Bondi, and California State University Channel Islands professor Jonathan Caravello. Caravello was acquitted of an assault charge after being accused of throwing a tear gas canister at federal agents during a 2025 protest against an immigration raid at a Camarillo, California, cannabis farm. The city of New Haven, Connecticut, also joined the lawsuit, stating that Trump administration officials have targeted it and other municipalities perceived to be sanctuary cities, highlighting ongoing conflicts over national borders and local defiance.
The fund has drawn criticism from within the political class, including Democrats and some Senate Republicans who reported being blindsided by its announcement. During a private meeting three days ago with acting Attorney General Todd Blanche, several senators warned that the party’s major immigration enforcement bill could be derailed by the controversy surrounding the fund.
Undermining Constitutional Authority
The implications of the fund extend to the state's response to internal dissent. Two police officers who defended the U.S. Capitol from the Jan. 6, 2021, mob also sued this week to prevent anyone, including Capitol rioters, from receiving payments. Acting Attorney General Todd Blanche would not rule out the possibility that rioters who assaulted police on Jan. 6 could be eligible for fund payouts during a congressional hearing four days ago. The Capitol riot investigation, once the largest in Justice Department history, was effectively ended by President Trump with mass pardons, commuted prison sentences, and orders to dismiss all pending Jan. 6 criminal cases after he returned to the White House last year. These beneficiaries included supporters who assaulted officers at the Capitol and members of far-right extremist groups imprisoned for plotting to attack the Capitol to keep Trump in office after his 2020 presidential election loss. Following his return, Trump appointed conservative activist Ed Martin, a leading advocate for Jan. 6 defendants, as interim U.S. Attorney for the District of Columbia, who subsequently fired or demoted prosecutors involved in Capitol riot cases.