Tuesday, January, 21, 2025

Trump’s $1.8 Billion Fund Faces Ongoing Court Challenge in Virginia

A Virginia judge kept Trump's $1.8 billion fund blocked, citing insufficient proof the administration abandoned it.
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Fridah Kangai

Fridah Kangai is a dedicated crypto journalist with a sharp eye for market trends, blockchain innovation, and digital asset movements. She specializes in breaking down complex topics into clear, engaging stories for both seasoned investors and curious newcomers. With a passion for decentralization and a pulse on the ever-evolving crypto space, Fridah delivers timely, accurate, and insightful coverage. Her work bridges the gap between technology and everyday understanding in the world of cryptocurrency.
  • Judge Brinkema extended the block on Trump’s proposed compensation fund.
  • Court requested sworn declarations from Blanche and Bessent within.
  • Critics questioned eligibility rules and potential taxpayer-funded compensation plans.

President Donald Trump’s proposed $1.8 billion Anti-Weaponization Fund continues to languish in a Virginia federal court, where a judge has determined that the administration hasn’t demonstrated that the program has been killed. Earlier this week, U.S. District Judge Leonie Brinkema granted a motion filed by the lawsuit to proceed, extending a prior ruling which blocked the fund. The ruling preserves the program without making any changes and while the court awaits further assurances from high-ranking administration officials.

But Brinkema said recent public comments by the acting attorney general, Todd Blanche, don’t give her reason to believe the fund will never be revived. She thus directed the Justice Department to provide sworn statements from Blanche and Treasury Secretary Scott Bessent within one week. Those claims should confirm that the administration has ended plans to the fund forever. The judge said she could dismiss the case if the statements are filed. The legal action will proceed, however, if the administration doesn’t comply.

But the issue is that the government hasn’t officially rescinded the proposal. To Congress, Blanche on June 2nd announced the administration would take no further action on the fund. However, President Trump has remained publicly supportive of the program, and that he has not repealed the executive order he signed May 18 establishing the program, Brinkema said.

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Judge Questions Lack of Formal Action

During the court case the Brinkema lawyer questioned government lawyers about the absence of withdrawal. Attorney Andrew Block of the Justice Department said he wasn’t aware of reasons for the administration not to formally rescind the order. He also seemed to address the court and swear he didn’t know Blanche so he could have received an answer. That’s a tremendous gap in the record, Brinkema said.

The ruling is different from a judgment issued by another federal judge in Washington, who accepted Blanche’s congressional testimony, but denied him an injunction. But Brinkema said there wasn’t enough evidence yet to close the case. The Anti-Weaponization Fund was set up as a part of a lawsuit filed by Trump to obtain his tax returns from the Internal Revenue Service (IRS). The fund was supposed to make up for those who had been unfairly investigated or prosecuted by the Justice Department, according to Trump.

The concept of a new kind of payment was soon subjected to criticism. Congressional Democrats contended that the program may result in funds being directed to Trump allies. They also expressed concerns that individuals who have ties to the January 6, 2021 Capitol attack may be eligible for compensation.

Those concerns escalated when Blanche stated she wouldn’t rule out applying for benefits through the program if anyone was involved in any Jan. 6 violence. None of the money in the fund has been distributed. Also, there was no commission of five people set up to assess the eligibility and payments. The Virginia court is deciding whether Trump’s assurances are sufficient to put an end to the lawsuits and the proposed $1.8 billion fund is frozen. The next step in the case will be if officials issue the sworn statements that the judge has asked for.

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