A federal judge in Virginia on Friday temporarily halted the Trump administration’s $1.776 billion Anti-Weaponization Fund, blocking all operations while a constitutional challenge works through the courts — and court filings show the settlement that created the fund also erased a potential $100 million federal tax liability for the president.
Judge Leonie M. Brinkema of the U.S. District Court for the Eastern District of Virginia issued the two-page order May 29, directing the administration to stop transferring money to the fund, processing claims, and disbursing payments. A hearing on the fund’s legality is set for June 12. The order came after the government declined to commit to holding the money until at least June 19, citing that refusal as grounds to act immediately to “ensure that no funds are irreversibly disbursed.”
The lawsuit that forced Brinkema’s hand, Floyd v. Department of Justice, was filed May 22 by Common Cause, the National Abortion Federation, the city of New Haven, and two individuals. Their core argument: the fund limits eligibility to people targeted by “Democrat” administrations only — those targeted by Republican officials cannot file claims — in violation of the First Amendment and equal protection guarantees.
Three additional lawsuits are pending, including ones from former Capitol Police officers and Citizens for Responsibility and Ethics in Washington.
What the original DOJ announcement did not include is what Trump received outside the fund itself. A settlement addendum released May 19 granted Trump and the other plaintiffs a liability waiver permanently protecting them from audits and prosecutions “currently pending or that could be pending.” The New York Times reported that waiver covers a potential federal tax liability of more than $100 million. Trump’s $10 billion IRS lawsuit was dismissed with prejudice — it cannot be refiled — in exchange for that waiver, a formal apology, and creation of the fund. Trump receives no money from the fund itself.
The presiding judge in Trump v. IRS had flagged before the dismissal that it was “unclear whether the Parties are sufficiently adverse to each other” to satisfy constitutional standing requirements. The parties filed voluntary dismissal the day their briefs on that question were due.
The fund also derailed Senate votes on the reconciliation bill before the Memorial Day recess. The June 12 hearing will determine whether the injunction holds while the constitutional questions are fully briefed.
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