A United States federal judge has temporarily stopped the White House from proceeding with a controversial $1.8 billion compensation fund linked to President Donald Trump, amid growing criticism that the initiative could benefit his political allies.
US District Judge Leonie Brinkema on Friday ordered the administration to halt all actions related to the creation and operation of the fund while the court considers whether to impose a longer-term suspension.
The ruling bars the transfer of money into the fund, the review of claims and the payment of compensation, with the judge saying the move was necessary to prevent funds from being “irreversibly disbursed” before the legal challenge is resolved.
The compensation program was established by the US Justice Department following a settlement tied to Trump’s civil lawsuit against the Internal Revenue Service (IRS) over the leak of his tax returns by a former contractor.
According to the administration, the fund is meant to compensate individuals allegedly affected by what Trump has described as government “weaponization” and politically motivated “lawfare” against conservatives.
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However, critics argue that the initiative lacks congressional approval and adequate public oversight, warning it could be used to reward Trump loyalists, including some individuals convicted over the January 6, 2021 attack on the US Capitol.
The legal challenge was filed by a group of plaintiffs, including former federal prosecutor Andrew Floyd and California professor Jonathan Caravello, who argued that the arrangement amounted to a “collusive agreement” without legal authority or accountability.
Brinkema has scheduled a hearing for June 12 to determine whether the freeze should remain in place pending further court proceedings.
The ruling marks another legal setback for Trump’s second-term agenda and has generated concern among Democrats, legal experts and some Republicans in Congress.
The Justice Department has not yet disclosed details about the five-member board expected to oversee the fund or the criteria that would determine eligibility for compensation.
Floyd, who previously worked on prosecutions linked to the January 6 Capitol riot, accused the administration of attempting to channel taxpayer money to political allies.
Trump had earlier granted clemency to more than 1,500 individuals convicted in connection with the Capitol attack after returning to office.
The administration has also reportedly begun removing Justice Department press releases related to January 6 prosecutions, describing them as “partisan propaganda.”
The lawsuit before Brinkema is one of several legal actions challenging the compensation program, including cases filed by law enforcement officers and government oversight organisations.
