The US Justice Department said on June 1, 2026, that it will abide by a court order temporarily freezing the $1.8 billion anti-weaponisation compensation fund established as part of former President Donald Trump's civil lawsuit settlement against the IRS [1, 2, 3].

The fund aims to compensate people alleged to have been harmed by politically motivated targeting, described by Trump as government 'weaponisation' and 'lawfare.' The Justice Department said the fund was "established in order to make up for the tremendous abuse, harm, and hate unfairly shown to so many people," and is "open to anybody who was so weaponised, targeted, or persecuted, whether they were Democrat, Republican, Conservative, Independent, or otherwise" [1].

The lawsuit originated after a 2019 leak of Trump's tax returns, prompting a $10 billion civil suit against the IRS. The $1.8 billion fund was introduced in May 2026 as part of the settlement agreement [3].

However, the fund has drawn heavy criticism. Democrats, some Republicans, former federal judges, legal experts, and ex-Justice Department officials have denounced it as a "slush fund" for Trump allies without legal or congressional authorization. Concerns are raised over the possibility of rewarding Trump's loyalists, including more than 1,500 people pardoned by Trump in 2025 who were convicted related to the January 6, 2021, Capitol attack [1, 2, 3].

Legal challenges allege the settlement was based on fraud and deception. On May 29, 2026, a Miami judge reopened the IRS lawsuit to investigate these claims. On the same day, US District Judge Leonie Brinkema issued a temporary order barring any actions to create or operate the fund, pending a hearing scheduled for June 12, 2026 [1, 2, 3].

The fund’s governance structure includes a five-member board appointed by acting Attorney General Todd Blanche, including one member named in consultation with Congress. Trump retains the power to remove board members without cause. No payments from the fund have been made yet as it remains in the organizational phase [3].

Reports indicate the Trump administration may abandon the fund. An Axios source told reporters, "It's dead for now" [1, 2].

The next court hearing concerning the fund's legality and potential operation is scheduled for June 12, 2026 [1, 2, 3].