Justice Department Announces $1.776 Billion Fund for Alleged Legal Weaponization Claims

The Trump administration announced a $1.776 billion fund to compensate individuals who claim the government weaponized the legal system against them. The Justice Department rolled out the fund as part of a settlement of a $10 billion lawsuit President Trump filed earlier this year against the Internal Revenue Service over the leak of his tax returns.

General Todd Blanche signed a memo this week stating the Treasury Department will move the money into the fund within 60 days. The memo said a commission of five members appointed by the attorney general will oversee the fund through December 2028. The settlement agreement outlines loose criteria for compensation claims, including legal and prison costs, with the commission to consider the totality of the circumstances.

A Trump administration official told CBS News that the commission will determine specifics and be transparent as it is assembled. Karin Sweigart, a lawyer who previously represented Mr. Trump in a defamation lawsuit, told CBS News that conversations about submitting claims are percolating.

Dan Backer, another Republican lawyer, said he is already fielding inquiries about the fund. He told CBS News the fund will help people made whole after the previous administration's treatment of American citizens. Jenny Cudd, who pleaded guilty to a misdemeanor trespass charge related to her involvement on January 6, 2021, told CBS News that all January 6 defendants will apply for restitution from the fund.

Joseph McBride, a lawyer who represented January 6 defendants, said he is certain some of his clients would apply but is skeptical about the administration carrying it out.

Some former federal officials and ethics groups have questioned the legality of the fund, including the lack of independent oversight or public input about potential awards. The progressive nonprofit Citizens for Responsibility and Ethics in Washington issued a statement criticizing the fund as the most brazen act of self-dealing in the history of the presidency.

Senate Majority Leader John Thune said on Tuesday that he was not a big fan of the fund and did not see its purpose. Sen. Bill Cassidy warned that voters are concerned about making their own ends meet, not about putting the fund together without a legal precedent.

One Republican lawyer close to the administration told CBS News that they expect the fund to face court challenges even though a lot of people in MAGA world are already counting their money. On Tuesday, Blanche did not rule out that January 6 defendants could be eligible for payments, telling senators that anybody in this country can apply.

Mike Howell, the president of the Oversight Project, told CBS News that his organization will figure out a way to help people benefit from the fund.