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Trump Administration's $1.8 Billion Fund Faces Second Federal Lawsuit

Two lawsuits challenge the creation of a compensation fund for claims of targeting by the prior administration. The suits allege the fund bypasses Congress and violates constitutional limits on federal spending.

ABC News
Bbc
2 sources·May 22, 7:53 PM(6 days ago)·2m read
Trump Administration's $1.8 Billion Fund Faces Second Federal Lawsuittheconservativetreehouse.com
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The Trump administration's $1.8 billion compensation fund to pay those who claim they were targeted by the Biden administration is now at the center of two federal lawsuits. A coalition of nonprofits and individuals, including a former Jan. 6 prosecutor, filed a complaint Friday in the Eastern District of Virginia.

" "Created following a collusive agreement between the President and his own administration, this Fund has no congressional authorization, no basis in law, and no accountability," the lawsuit said. The new suit comes two days after former Capitol Police Officer Harry Dunn and Metropolitan Police Department Officer Daniel Hodges, who both defended the U.S. Capitol in 2021 during the Jan.

6 attack, filed a similar lawsuit in D.C. asking a judge to halt the creation and funding of the fund.

Friday's lawsuit was brought by a former federal prosecutor who brought Jan. 6 cases, a law professor who was acquitted after being charged for his actions during an immigration raid, the National Abortion Federation, the nonprofit Common Cause, and the City of New Haven, Connecticut.

"Since its inception, this fund has been on a collision course with the United States Constitution," the lawsuit said. The Department of Justice's launch of the "Anti-Weaponization Fund" -- in exchange for President dropping his $10 billion lawsuit against the IRS and two other civil claims -- has sparked accusations of "collusive litigation" and a bipartisan uproar over the possible use of taxpayer money to pay rioters who attacked the Capitol on Jan.

6.

While Trump previously said he was not involved in the creation of the fund, he took to social media on Friday to defend the use of taxpayer money in that manner. "I gave up a lot of money in allowing the just announced Anti-Weaponization Fund to go forward.

I could have settled my case, including the illegal release of my Tax Returns and the equally illegal BREAK IN of Mar-a-Lago, for an absolute fortune. " Trump wrote. Friday's lawsuit is also alleging that the use of the federal Judgment Fund -- an unlimited appropriation used by the federal government to pay court judgments and settlements -- to create the "Anti-Weaponization Fund" is an unlawful end-run around Congress' authority to appropriate money.

Both lawsuits precede the establishment of the fund itself, which, according to the settlement agreement between Trump and the DOJ, is to be created by Acting Attorney General Todd Blanche within 30 days. As part of the arrangement, Blanche is to appoint a five-commissioner committee to oversee claims.

Key Facts

$1.8 billion
size of the proposed compensation fund
Two lawsuits
filed in federal courts challenging the fund
30 days
deadline for Acting Attorney General to create the fund

Story Timeline

3 events
  1. May 20, 2026

    Former Capitol Police Officer Harry Dunn and Metropolitan Police Department Officer Daniel Hodges filed a lawsuit in D.C. seeking to halt the fund.

    1 sourceABC News
  2. May 22, 2026

    A coalition including a former Jan. 6 prosecutor filed a second lawsuit in the Eastern District of Virginia challenging the fund.

    1 sourceABC News
  3. May 22, 2026

    President Trump posted on social media defending the use of taxpayer money for the fund.

    1 sourceABC News

Potential Impact

  1. 01

    A five-commissioner committee would oversee claims if the fund is established.

  2. 02

    The lawsuits could delay or block distribution of payments from the fund.

Transparency Panel

Sources cross-referenced2
Confidence score65%
Synthesized bySubstrate AI
Word count482 words
PublishedMay 22, 2026, 7:53 PM
Bias signals removed1 across 1 outlet
Signal Breakdown
Amplifying 1

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