WASHINGTON — The Justice Department on Monday announced the creation of a $1.776 billion “Anti-Weaponization Fund” as part of a settlement agreement that led President Donald Trump to drop a $10 billion lawsuit against the Internal Revenue Service.
The fund, drawn from the federal Judgment Fund, aims to provide a process for individuals who claim they were victims of “weaponization and lawfare” by the government to seek compensation or other relief, the department said in a statement.
The announcement came hours after Trump voluntarily dismissed his lawsuit in federal court in South Florida over the leak of his tax returns by a former IRS contractor in 2019 and 2020. Under the agreement, Trump and other plaintiffs received a formal apology from the Justice Department but no direct monetary payment.
According to the Justice Department, the Treasury Department is required to deposit the $1.776 billion into a dedicated account within 60 days. Claims will be reviewed by a five-member commission appointed by Acting Attorney General Todd Blanche, the department said. There are no partisan requirements for filing claims, and any unspent money will revert to the federal government when the fund ceases operations, expected after Dec. 1, 2028.
“The Anti-Weaponization Fund will provide a systematic process to hear and redress claims of others who suffered weaponization and lawfare,” the Justice Department said in its announcement.
The fund’s size was based on projected valuations of potential future claims, according to department documents. Details on eligibility criteria, the claims process and potential payout amounts remain unclear. Trump family members and the president’s businesses are ineligible for payments, officials have stated.
The move has drawn criticism from Democrats and government ethics watchdogs, who have called it an unprecedented use of taxpayer funds potentially benefiting political allies of the president, including some involved in events surrounding Jan. 6, 2021. Supporters describe it as redress for what they view as politically motivated investigations during the prior administration.
Legal experts have questioned aspects of the arrangement, including whether it complies with certain constitutional provisions, though the Justice Department maintains it relies on existing authority under the Judgment Fund, a permanent appropriation used to pay settlements and judgments against the government.
The fund follows precedents such as the Obama administration’s creation of a $760 million settlement for claims of discrimination in agriculture programs, the department has noted.
As of Tuesday, no claims had been filed and no commission members had been publicly named. The Justice Department said it would issue quarterly reports to the attorney general detailing disbursements.
