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US judge temporarily freezes payments from Trump fund to combat "government politicization"

The decision stops disbursing funds from a $1.8 billion fund pending consideration of legal appeals

US judge temporarily freezes payments from Trump fund to combat "government politicization"

Published: May 29, 2026

Washington —
A federal judge in Virginia issued a temporary order preventing President Donald Trump's administration from spending any amounts from a new fund worth nearly $1.8 billion, established to compensate people who say they were politically targeted by government agencies.

The fund is known as the “Government Depoliticization Fund,” and it was part of a settlement related to a lawsuit filed by Trump against the IRS after the leak of his tax records.

Under the order, the government cannot currently proceed with operating the fund or distributing any compensation until the court reviews the appeals filed against it.

A hearing is scheduled for June 12 to discuss whether the payment freeze will continue or be lifted.

The fund has sparked widespread controversy in Washington, as its critics see it as a means to compensate Trump’s political allies with public money, while the administration says it aims to make amends for those harmed by the use of state institutions for political purposes.

The plan has also raised concerns even among some Republicans, especially regarding the possibility that people connected to the January 6 Capitol riot might benefit from it.

The five-member committee, which is supposed to manage compensation claims, has not yet started its work, nor have any funds been disbursed from the fund until the freeze order was issued.

The temporary ruling opens a new legal and political battle over the limits of the administration’s authority in using government settlement funds, and the legitimacy of creating a fund of this size outside clearer oversight from Congress and the courts.

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