Court Stops Trump's £1.4bn Compensation Fund
Last update: May 29, 2026
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A federal judge just hit pause on Trump’s £1.4bn payout plan — calling it a potential “slush fund” for political allies. And the legal fight’s only getting started.
Right, so here’s the latest twist from Washington, as reported by cbinews.tv.
A US federal judge has slammed the brakes on Donald Trump’s controversial $1.8 billion — that’s about £1.4bn — compensation fund. On Friday, US District Judge Leonie Brinkema put a temporary freeze on the whole thing while she decides if a longer block is needed.
Her order basically says: “Nobody touch that money.” No transfers in, no claims considered, no payments going out. The idea is to make sure no cash is “irreversibly disbursed” before the courts have properly looked at whether this fund is even legal.
So, what’s this fund all about?
The Justice Department set it up after settling Trump’s civil lawsuit against the IRS. That case was over the leak of his tax returns by an ex-government contractor. According to the administration, the fund is meant to compensate people who’ve suffered from government “weaponisation” and “lawfare” — Trump’s go-to phrases for what he calls the political targeting of conservatives and his supporters.
Critics aren’t buying it though. They’ve labelled it a “slush fund” with no clear legal basis and barely any public oversight. The worry? That it could end up paying out to Trump loyalists, including some of the people convicted over the January 6, 2021 Capitol riot.
The lawsuit pushing back came from an interesting mix of people. One is Andrew Floyd, a former federal prosecutor who actually worked on the January 6 cases. The other is Jonathan Caravello, a California professor who was arrested while protesting an immigration raid. Their argument: this is a “collusive agreement” with “no congressional authorisation, no basis in law, and no accountability.”
Judge Brinkema has set a hearing for June 12 to decide if the freeze should stay in place longer. No word yet from Trump or the Justice Department on the ruling.
Now, the fund hasn’t actually started handing out money. Applications aren’t even open. A five-member board is supposed to decide who gets paid and how much — but the Justice Department hasn’t said who’s on it, or what criteria they’ll use. Still, US media reports say people claiming they were “unfairly targeted” have already been asking for payouts.
Floyd didn’t hold back in his court statement. He accused the administration of trying to rush money to political allies while punishing the folks who investigated them. “The administration is gifting the people I helped investigate and prosecute after January 6 access to an illegally created process,” he wrote.
For context: on his first day back in office last year, Trump granted clemency to more than 1,500 people convicted over the Capitol attack. That was when his supporters stormed Congress trying to overturn Joe Biden’s 2020 election win. The administration has also started scrubbing Justice Department press releases about January 6 prosecutions, calling them “partisan propaganda.”
“We will do everything in our power to make whole those who were persecuted for political purposes,” a Justice Department social media account posted last week.
But here’s the kicker — even some Republicans are getting uneasy. Senate Republican leaders actually postponed a vote last week on a big bill funding Immigration and Customs Enforcement and the Border Patrol. Part of the reason? Fears that this fund could let January 6 defendants get taxpayer money.
This isn’t the only legal challenge either. Law enforcement officers who faced rioters on January 6 and government oversight groups have filed their own cases to stop the fund.
So, for now, the £1.4bn pot sits untouched. June 12 is the next date to watch.
As reported by cbinews.tv
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