US Judge has blocked Trump Administration’s $1.8 billion compensation fund over legal concerns.
NewsOnline Nigeria reports that the United States federal judge has temporarily stopped the White House from proceeding with a controversial $1.8 billion compensation fund linked to President Donald Trump, following allegations that the initiative could benefit his political allies.
US District Judge Leonie Brinkema on Friday issued an order preventing the administration from taking further steps to establish or operate the fund pending the outcome of an ongoing legal challenge.
The ruling blocks the transfer of money into the programme, consideration of compensation claims, and any payment disbursement while the court determines whether a longer suspension should be imposed.
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According to the judge, the temporary freeze was necessary to ensure that no funds are “irreversibly disbursed” before the legal issues surrounding the initiative are fully addressed.
The compensation package, created by the US Justice Department, emerged from the settlement of Trump’s civil lawsuit against the Internal Revenue Service over the leak of his tax returns by a former government contractor.
The Trump administration has defended the initiative, arguing that it is intended to compensate individuals allegedly affected by what it described as government “weaponization” and politically motivated prosecutions targeting conservatives and Trump supporters.
However, critics including Democrats, legal experts, and some Republicans have strongly opposed the programme, describing it as lacking transparency, congressional approval, and proper legal foundation.
Opponents also fear the fund could be used to reward Trump loyalists, including individuals convicted over the January 6, 2021 attack on the US Capitol.
The lawsuit challenging the fund was filed by several plaintiffs, including former federal prosecutor Andrew Floyd and California professor Jonathan Caravello, who argued that the arrangement amounted to an unlawful and politically motivated agreement.
The court has scheduled a June 12 hearing to decide whether the suspension should remain in place for a longer period.
The White House and the Justice Department had not issued an official response to the ruling as of press time.
Meanwhile, the controversy has reportedly created tension within Republican circles, with concerns emerging in Congress over the possibility of taxpayer funds being directed toward January 6 defendants.
President Trump had earlier granted clemency to more than 1,500 individuals convicted in connection with the Capitol riot after returning to office.
The legal challenge is one of several lawsuits currently seeking to halt the implementation of the compensation programme.
