A federal judge has temporarily blocked the Trump administration from moving forward with a $1.776 billion fund designed to compensate individuals who claim they were wrongfully targeted by the government.
U.S. District Judge Leonie Brinkema, appointed by former President Clinton, issued the Friday order preventing the Department of Justice from taking further action on the initiative. The ruling freezes all fund activities, including money transfers, processing of submitted claims, and any payouts.
The lawsuit challenging the fund was brought by Andrew Floyd, a former Assistant U.S. Attorney and January 6 prosecutor, alongside other plaintiffs who argue it operates as a "slush fund" that violates constitutional protections. The group's complaint contends the mechanism is "on a collision course with the United States Constitution."
The Trump administration created the fund as part of a settlement over the president's lawsuit against the IRS and Treasury Department regarding the leak of his tax returns. Under the program's structure, the attorney general would handpick a five-member commission responsible for determining who receives compensation and in what amounts.
A distinctive feature of the arrangement is that decisions made by the commission cannot be appealed or challenged in court. Additionally, the identities of recipients and payout amounts would remain confidential, with no public disclosure requirement.
Judge Brinkema's order explicitly prohibits the DOJ from considering any new claims or distributing money from the fund while litigation continues. The restrictions aim to prevent irreversible fund disbursements during the legal challenge.
The DOJ has not yet publicly responded to the order.
Author James Rodriguez: "This ruling exposes the constitutional fault lines baked into the fund from day one, but expect a fierce appeal from the administration that will keep this in courts for months."
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