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Trump pushes $1.8 billion payout to supporters despite legal block

A $1.776 billion fund intended for Trump allies is moving forward even after a judge declared it illegal and many Republican senators voiced opposition.

Donald Trump’s attempt to create a $1.776 billion slush fund for his supporters has encountered a federal judge’s ruling that the settlement is illegal. Katie Phang noted that the money would be sourced from the Judgment Fund, which is meant for legitimate federal tort claims vetted by the Justice Department. The controversy stems from a lawsuit Trump filed against the IRS after a tax-return leak, a case the court dismissed as improper self-dealing.

Republican senators such as Thom Tillis, John Cornyn, Bill Cassidy and Lisa Murkowski have expressed doubts about the fund and the confirmation of acting attorney general Todd Blanche. Critics argue the payout would benefit figures like Michael Caputo, Steve Bannon and Michael Flynn, while former campaign worker Sam Nunberg defended the concept as compensation for perceived political persecution.

Why it matters

The dispute highlights how federal funds could be used for partisan payouts, raising legal and ethical concerns.

In this story

Trump slush fundJudgment Fundfederal tort claimsIRS lawsuitTodd BlancheRepublican oppositionlegal rulingpolitical compensation