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Judge blocks payments from Trump's $1.8B relief fund amid reopened IRS lawsuit.

May 30, 2026 Politics
Judge blocks payments from Trump's $1.8B relief fund amid reopened IRS lawsuit.

A federal judge has suddenly reversed her stance and reopened Donald Trump's massive lawsuit against the Internal Revenue Service. This legal victory strikes a direct blow to the president's newly announced $1.8 billion relief fund.

Judge Kathleen M. Williams revived the case just days after the administration agreed to drop the suit. They sought the Department of Justice to create a slush fund for political allies.

However, another judge, Leonie Brinkema, has now blocked any payments from this so-called 'Anti-weaponization fund.' Her order halts the project and stops potential payouts for at least two weeks.

The administration established the fund to settle the tax return leak dispute. They claimed the money would help those facing political persecution.

Judge blocks payments from Trump's $1.8B relief fund amid reopened IRS lawsuit.

Yet, Brinkema, a former Bill Clinton appointee, has ordered the government to pause. She insists no money can move in or out of the account while litigation continues.

A hearing is scheduled for June 12 to decide if the ban should extend. At least a dozen Republican Senators reportedly want the fund dropped immediately.

Top aides are considering removing the fund in exchange for funding an immigration crackdown. A Justice Department spokesperson stated they are 'extremely confident' the fund is legal.

They argued that judicial preferences should not stop restitution for victims of 'lawfare.' The White House declined comment and sent questions to the Justice Department.

Judge blocks payments from Trump's $1.8B relief fund amid reopened IRS lawsuit.

The fund has faced fierce backlash since its announcement last week. Even Republicans are questioning eligibility rules for recipients.

Some worry that violent rioters from the January 6, 2021, Capitol attack might qualify for compensation. No money has been paid out yet because the commission has not formed.

Plaintiffs from Democracy Forward seek a court order to stop the fund entirely. They argue the administration targets individuals for personal and ideological reasons.

Brinkema wants to maintain the status quo to prevent irreversible disbursement of taxpayer dollars. She has given the government one week to respond in writing.

The Virginia lawsuit lists a fired prosecutor and an acquitted professor as plaintiffs. They claim the fund is built on unlawful grounds from the start.

Judge blocks payments from Trump's $1.8B relief fund amid reopened IRS lawsuit.

Two other separate lawsuits in Washington also challenge the fund's creation. The 'slush fund' aims to reward allies claiming persecution by the Biden Justice Department.

Lawmakers expressed outrage over the prospect of taxpayer money flowing to rioters. Two police officers defending the Capitol sued last week for their injuries.

Acting Attorney General Todd Blanche did not rule out payouts for Jan 6 attackers during a hearing. Nearly 1,600 people have been charged with Capitol riot-related federal crimes.

More than 1,200 individuals were convicted and sentenced prior to President Trump's sweeping executive actions last year, which included issuing mass pardons, commuting prison sentences, and ordering the dismissal of every pending criminal case related to January 6.

Judge blocks payments from Trump's $1.8B relief fund amid reopened IRS lawsuit.

Among the plaintiffs in the resulting Virginia lawsuit is Andrew Floyd, a former Assistant U.S. Attorney who prosecuted Capitol riot cases in Washington before being fired last year by then-Attorney General Pam Bondi. Floyd asserts that his termination was an act of retaliation for his work on January 6 prosecutions.

"The President's targeting of me and others involved in January 6 prosecutions leaves our country in a very dark place, sending a message that insurrection and sedition will be protected (and even encouraged) as long as it is on behalf of this administration," Floyd stated in a court filing.

Another plaintiff is Jonathan Caravello, a professor at California State University Channel Islands, who was acquitted of an assault charge. He faced accusations of throwing a tear gas canister at federal agents during a 2025 protest against an immigration raid at a cannabis farm in Camarillo, California.

The Daily Mail contacted the White House for comment, which directed all inquiries to the Trump Organization.

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