A federal judge in Alexandria, Virginia, has indefinitely extended a preliminary injunction blocking the implementation of a nearly $1.8 billion government compensation fund that was intended to provide payouts to individuals who claimed they were targeted by federal authorities.
U.S. District Judge Leonie Brinkema issued the ruling on Friday, June 12, 2026, indicating she would consider declaring the case moot if senior administration officials, including Acting Attorney General Todd Blanche and Treasury Secretary Scott Bessent, submit sworn declarations stating the fund would not proceed under any name or format.
The judge gave government officials one week to provide sworn statements confirming that no payments had been distributed through the fund and that there were no plans to revive the program in any form. The administration had argued during Friday’s hearing that the case should be considered moot, citing Blanche’s recent notification to Congress that the government would not proceed with the fund’s implementation.
During the proceedings, Judge Brinkema questioned Department of Justice attorney Andrew Block about why the administration had not formally rescinded the executive order that established the fund. When Block indicated he did not have that information, Brinkema noted there was a significant gap in the administrative record without a clear answer to that question.
The legal challenge was brought by a coalition of organizations and individuals, including Andrew Floyd, a former assistant United States attorney who previously led a task force prosecuting individuals involved in the January 6, 2021, Capitol riot. The plaintiffs argued that the fund represented an unprecedented use of federal power against perceived political opponents.
The controversial fund had drawn criticism from legislators across party lines, with concerns that it could serve as a financial resource for political allies and potentially provide compensation to individuals convicted of crimes related to the January 6 Capitol incident. Senators Cory Booker, a Democrat from New Jersey, and Bill Cassidy, a Republican from Louisiana, filed an amicus brief expressing their concerns about the use of public funds.
The fund originated from a settlement in a lawsuit filed by President Donald Trump against his own administration, claiming he was entitled to $10 billion in damages due to the unauthorized disclosure of his tax return information by a former government contractor. The settlement included a liability waiver providing permanent protection from audits and prosecutions for the plaintiffs.
The money for the fund was to be drawn from the Judgment Fund, a Treasury reserve designated for final court judgments and compromise settlements in cases involving the United States government. The proposed amount of $1.776 billion had symbolic significance in its numerical reference to American independence.
Skye Perryman, president and CEO of Democracy Forward, which represents the plaintiffs, stated after the hearing that the court had recognized serious legal concerns about creating a taxpayer-funded compensation program operating outside constitutional safeguards governing public spending. Perryman emphasized that the court’s order ensures taxpayer funds cannot be distributed through what the plaintiffs characterize as an unlawful scheme while constitutional issues are being fully examined.
The judge’s decision to maintain the injunction reflects ongoing judicial scrutiny of the fund’s legality and proper authorization. The requirement for sworn declarations from top officials underscores the court’s interest in obtaining definitive commitments about the fund’s future status before potentially dismissing the case as moot.
Leave a Reply