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A federal judge ruled the case challenging the Trump administration's planned $1.8 billion fund will continue after officials refused to confirm in writing that the fund is permanently canceled. The Justice Department created the fund as part of a settlement with the IRS but has not put it into effect.
ABC NewsA federal judge ruled Wednesday that a lawsuit challenging the Trump administration's planned $1.8 billion fund will continue after officials declined to provide written confirmation that the fund is permanently canceled. The Justice Department established the fund to compensate people who believe the justice system was weaponized against them.
The fund was created as part of a settlement between President Donald Trump and the IRS but has not taken effect.
Court Proceedings Judge Leonie M.
Brinkema issued a filing that sets new deadlines in the case. She had previously indicated she might dismiss the lawsuit if officials confirmed under penalty of perjury that the fund would not be revived. Officials refused to provide that written assurance.
They pointed to statements made by the Acting Attorney General to Congress that the fund is not going forward. The judge determined those statements were insufficient. She wrote that a civil suit does not necessarily become moot when defendants agree to stop the conduct at issue.
Trump sued the IRS for $10 billion in January, claiming the agency violated his privacy when a contractor leaked his tax returns. The case was settled in May. The settlement created the $1.776 billion fund. Brinkema blocked the fund from moving forward and extended that order earlier this month.
Brinkema questioned whether officials were being truthful about the fund being dead. She cited the president's consistent support for the fund and the Acting Attorney General's acknowledgment that the fund remains important. The judge also noted that when lawmakers asked the Acting Attorney General to commit in writing to ending the fund, he responded that he was not committing to putting anything in writing.
The administration is still moving forward with another part of the IRS settlement that gives the president and his eldest sons broad legal immunity. That agreement is also under court scrutiny. Officials have reportedly continued working on ways to provide payments to supporters even without the fund in effect.
Alternatives under consideration include reviving the fund in a different form or allowing individual lawsuits with expedited settlements.
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