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Acting Attorney General Todd Blanche has insisted that the plan to pay taxpayer funds to Trump allies is dead. But he hasn't said so under oath.
A federal judge may have dealt the final blow to President Donald Trump's $1.8 billion "weaponization fund" on Friday, indefinitely blocking it and ordering his administration to state unequivocally that it's no longer happening.
In the face of bipartisan backlash, acting Attorney General Todd Blanche had publicly backed off plans to use the money earlier this month, and a court temporarily blocked the transfer of the money to what opponents had dubbed a "slush fund" for Trump's supporters, including January 6 rioters who claim to be victims of government "weaponization" by the Biden administration.
But The Atlantic reported on Thursday that even as the US Department of Justice (DOJ) publicly swears that the payouts are dead, administration officials have been reassuring Trump's cronies behind the scenes that they'll get their checks and that the administration simply needs to wait for the legal blowback to die down or find an alternative way to award them the money, which was set to follow a DOJ-brokered settlement between Trump and his own Internal Revenue Service (IRS).
That may prove more difficult after Friday, however, when US District Judge Leonie M. Brinkema issued a preliminary injunction indefinitely extending her previous two-week pause on the fund.
She described the arrangement, to have taxpayer funds disbursed without court rulings to “an extremely small group” that many Americans feel engaged in “unacceptable” conduct, as "problematic."
The DOJ had attempted to have the case against the fund dismissed, arguing that it was now a moot point, since Blanche had publicly declared it dead. But Brinkema said, "The [government’s] mootness argument, in my view, doesn’t go anywhere.”
While the DOJ stated that the fund has “not been set up and is now not going forward," Brinkema noted that Blanche had declined to state that under oath, while Trump has publicly continued to champion the fund even as his administration has backed away from it.
During the hearing in the Eastern District of Virginia, Brinkema pressed DOJ lawyer Andrew Block on why, if the fund was truly defunct, the administration had not formally rescinded the order setting it up. He said he didn't know.
The judge gave Blanche, Associate Attorney General Stanley Woodward Jr., and Treasury Secretary Scott Bessent, whose department would have overseen the fund, one week to sign a “clear, unambiguous” declaration stating under penalty of perjury that the fund is dead, and wrote in the order that they must affirm that it "will not proceed in any manner, or under any name."
She said in order for the lawsuit to be thrown out, the government needed to put it in writing because "we don’t have the kind of absolute certainty that this fund wouldn’t rear its head."
CEO @SkyePerryman and Senior Counsel Pooja Boisture break down our major slush fund win from court. pic.twitter.com/ngneLRsl8R
— Democracy Forward (@DemocracyFwd) June 12, 2026
Outside the courtroom, Skye Perryman, the president and CEO of Democracy Forward—the watchdog group that sued the DOJ—celebrated that the court had "put the brakes on Donald Trump's slush fund."
The group is representing several plaintiffs who say they'd be harmed if the fund were to be enacted.
They include a former federal prosecutor fired after leading January 6 cases; the city of New Haven, Connecticut, which has been targeted by the administration over its sanctuary policies; the National Abortion Federation, which says the fund could reward anti-abortion activists convicted of clinic-related offenses; and the watchdog group Common Cause, which argues that the opaque scheme could embolden January 6 defendants.
"We were thrilled that the judge understood the significant harm that our clients face as a result of the fund, as well as the American people," said Democracy Forward senior counsel Pooja Boisture. "We were thrilled that she got it right. She understood that this was not a partisan issue."
It remains unclear whether the order would stop the administration from pursuing other methods for rewarding Trump's allies. Reuters reported on Friday that his legal allies have discussed dusting off a 1946 law called the Federal Tort Claims Act, which would allow individuals to file administrative claims and lawsuits that could be settled out of court with a lot of flexibility for the government.
“The Trump administration cannot be trusted with the public’s money,” said Omar Noureldin, Common Cause’s senior vice president for policy and litigation. "We’ve successfully locked the president’s personal slush fund for now, and we’ll keep the pressure on until it’s shut down for good.”
Among other things, the pardoned rioters have faced charges related to grand larceny, fraud, child sexual abuse, and plots to assassinate law enforcement officials and politicians.
On the first day of his second term last year, President Donald Trump delivered a mass pardon to more than 1,500 people who were charged with crimes related to the violent riot at the US Capitol on January 6, 2021.
An analysis published Thursday by Lawfare associate editor Katherine Pompilio finds that at least 97 of these pardoned Trump supporters have been charged with other crimes, including serious alleged offenses such as grand larceny, fraud, and plots to assassinate law enforcement officials and politicians.
The analysis also documents 14 instances of pardoned Capitol rioters being "charged with sex crimes or crimes related to child sexual abuse material (CSAM)," while "at least six" have been charged with domestic violence.
Some of the pardoned rioters have been charged with more minor offenses, including public intoxication, possession of drug paraphernalia, and property damage.
The most notable finding is that at least five of the repeat offenders committed crimes after being freed from prison as a result of Trump's actions, suggesting that his pardon "may have actively facilitated criminal conduct."
The most infamous case involves Andrew Paul Johnson, a Capitol rioter who was freed from prison after receiving the Trump pardon and has since been sentenced to life in prison on charges related to child molestation.
"The criminal conduct for which he was convicted took place both before and after his pardon," the analysis notes.
Other repeat offenders who committed crimes after being freed by Trump were Zachary Alam, who was convicted of felony and grand larceny months after being pardoned, and Ryan Nichols, who was arrest last month for allegedly "threatening a person with a gun in a church parking lot," the analysis finds.
According to a Thursday report from The New York Times, the Lawfare analysis more than doubles the number of documented instances of pardoned rioters who have been charged with crimes beyond January 6-related offenses.
"A previous study of January 6 recidivism found that at least 40 defendants faced other criminal charges, with 12 taking place after Trump's clemency order," reported the Times. "The Lawfare study found 19 criminal cases that occurred after the clemency."
Sen. Ron Wyden said the $1.8 billion slush fund was "staggeringly corrupt even by Trump's bottom-dwelling standards."
President Donald Trump's attempt to create a $1.8 billion slush fund for his political allies is coming under bipartisan attack, and congressional Democrats are proposing a 100% tax on any of its future beneficiaries to thwart what's being described as an unprecedented form of corruption in the nation's nearly 250-year history.
Rep. Mike Thompson (D-Calif.) on Tuesday introduced the first bill taxing Trump slush-fund payouts at a 100% rate, and he was followed on Thursday by Sens. Chuck Schumer (D-NY) and Ron Wyden (D-Ore.), who introduced a similar bill in the US Senate.
If enacted, the legislation would negate the entire $1.8 billion venture, which was created as purported restitution for Trump politcal allies who have been convicted of committing crimes on his behalf, and force beneficiaries to return any payments received to the US Department of Treasury.
The bill would slap on an additional 50% penalty "in the case of any willful attempt to avoid or evade the tax."
Wyden described the president's slush fund, which could be used to pay out cash to Trump supporters who violently stormed the US Capitol building on January 6, 2021, as "staggeringly corrupt even by Trump’s bottom-dwelling standards."
"Congress must do whatever it takes to prevent Donald Trump from stealing $1.8 billion from the American people to fund right-wing violence and handouts to insurrectionists," said Wyden. "This money doesn’t belong to Donald Trump, it belongs to the taxpayer.”
Thompson, the ranking member of the House Ways and Means Subcommittee on Tax, said that the legislation is need to stop Trump's attempt "to line the pockets of January 6th insurrectionists who attacked law enforcement and tried to overturn our democratic election."
"My legislation ensures if a sitting president sues our government while in office," added Thompson, "they get taxed 100% on any money paid through a trial or settlement."
Rep. Mike Levin (D-Calif.) took some time on Thursday to provide an overview of the Trump slush fund's creation in a lengthy social media post.
As explained by Levin, the fund came about after Trump filed a $10 billion lawsuit against the Internal Revenue Service (IRS) earlier this year over the 2019 leaking of his tax returns.
Levin noted that "IRS lawyers did their jobs" by writing a memo of legal arguments they believed would defeat Trump's lawsuit in court.
However, before the case could be fully heard in a courtroom, Trump agreed to drop his lawsuit while the US Department of Justice (DOJ) announced the creation of the $1.8 billion "anti-weaponization fund" as a settlement.
Levin also called attention to the structure of the committee, which he said was riddled with conflicts of interest.
"The acting attorney general, Trump’s former criminal defense attorney, picks the five commissioners who decide who gets paid," he said. "Trump can fire any of them. Proud Boys and Oath Keepers are not ruled out."
Levin concluded by calling the fund "the most corrupt thing I've ever seen from an American president."
While Democrats are taking the lead in the effort to block Trump's slush fund, some Republicans have also indicated their opposition to the initiative.
Rep. Brian Fitzpatrick (R-Pa.), one of the most vulnerable GOP members of the House, said on Wednesday that "a nearly $1.8 billion DOJ-controlled fund cannot be created, defined, and distributed in the shadows," and he demanded acting US Attorney General Todd Blanche provide answers about who will be eligible to receive payouts and under what legal authority.
"Taxpayer dollars will not be turned into a discretionary payout fund," Fitzpatrick emphasized. "Transparency is not optional. Accountability is not negotiable."
According to a Thursday report from Punchbowl News, Senate Republicans are preparing to slap restrictions on the $1.8 billion fund that could prevent any payments from going to January 6 rioters who attacked police officers.
In an interview with Punchbowl News, Sen. Thom Tillis (R-NC) expressed incredulity that such guardrails were even necessary.
"Imagine that—a fund that is set up to compensate people who assaulted Capitol Police officers," Tillis said. "How absurd does that sound coming out of my mouth?"