Trump DOJ ‘lawfare’ fund temporarily blocked by judge as suit proceeds
A federal judge in Virginia on Friday temporarily blocked the Justice Department from taking any action to create, fund or spend money from the so-called Proliferation Fund as a lawsuit challenges its proceeds.
The Justice Department announced earlier this month that it had created a $1.8 billion fund as part of a $10 billion lawsuit it filed against the Internal Revenue Service over the leak of President Donald Trump’s tax records by an IRS employee.
The fund aims to compensate people who claim they were victims of prosecutorial overreach by the Justice Department under the Biden administration. Critics have called it a “slush fund” for Trump allies, including people who participated in the riot at the U.S. Capitol on Jan. 6, 2021.
U.S. President Donald Trump watches a press conference on the conflict in Iran in the James S. Brady Press Briefing Room of the White House on April 6, 2026 in Washington, DC.
Saul Loeb | Afp | Getty Images
In her order Friday, Judge Leonie Brinkema barred the Department of Justice from “taking any other action with respect to the creation or operation of the Counterproliferation Fund, including the transfer of funds to the Fund, the consideration of all requests submitted to the Fund, and the distribution of any funds from the Fund.”
The decision came a day after plaintiffs in the case in U.S. District Court in Alexandria asked Brinkema to issue a temporary restraining order or injunction against the fund and set a schedule for expedited legal briefing on whether the fund should be allowed to operate while the lawsuit against the fund is pending.
Brinkema chose the second option, telling the Trump administration to file its objection to the plaintiffs’ request by June 5.
On June 12, it held a hearing on the question of whether the blockade of the fund should continue.
“It is important that the status quo be maintained until plaintiffs’ pending motion is resolved,” the judge wrote in a pointed footnote in his order.
Brinkema said this was “especially” important because the plaintiffs had alleged that Justice Department lawyers “could not provide assurance as to how long it would take.” [the] ‘The status quo will continue’ and rejected plaintiffs’ request that the government undertake not to transfer money to the Fund or process or pay claims until at least June 19 to allow for less compressed briefings in this case.”
Some of Trump’s allies have already said they want compensation from the fund.
The case is one of three federal lawsuits challenging Justice Department funding.
The Justice Department did not immediately respond to CNBC’s request for comment on Brinkema’s order.
— CNBC’s Kevin Breuninger contributed to this article.
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