American court rejects Trump's proposed $1.8 billion payout to loyal supporters

A federal judge's ruling on Friday brought a temporary halt to the Trump administration's plans to establish a $1.8 billion compensation package, which has been criticized as a potential "slush fund" for the president's allies, with US District Judge Leonie Brinkema issuing an order to block further action on the fund.

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The judge's decision prevents the administration from taking steps to create or operate the fund, including transferring money into it, considering claims, or making payments, with the goal of ensuring that no funds are "irreversibly disbursed" before the legal challenge is resolved.

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This development marks another setback for one of President Donald Trump's most contentious second-term initiatives, which has already sparked concern among Democrats, legal experts, and some Republican lawmakers.

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The fund in question was established by the Justice Department as part of a settlement in Trump's civil lawsuit against the Internal Revenue Service, which stemmed from the leak of his tax returns by a former government contractor.

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According to the administration, the program aims to provide compensation to individuals who have suffered from government "weaponization" and "lawfare," terms used by Trump to describe what he claims is the politically motivated targeting of conservatives and his supporters.

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However, opponents argue that the fund lacks a clear legal basis, has limited public oversight, and could potentially be used to reward loyalists, including those convicted of crimes related to the 2021 US Capitol assault by Trump supporters.

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US District Judge Leonie Brinkema's order came in response to a lawsuit filed by a group of plaintiffs, including Andrew Floyd, a former federal prosecutor who worked on the January 6 Capitol riot cases, and Jonathan Caravello, a California professor who was arrested during a protest against an immigration raid.

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The plaintiffs contend that the fund represents a "collusive agreement" between Trump and his administration, characterized by "no congressional authorization, no basis in law, and no accountability."

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A hearing has been scheduled for June 12, at which the judge will consider whether to extend the freeze on the government's work on the fund.