A federal judge in Washington has refused to temporarily block a proposed $1.8 billion fund linked to President Donald Trump, concluding that the administration itself has indicated the initiative is no longer moving forward.
U.S. District Judge Richard Leon ruled that a request from watchdog group Citizens for Responsibility and Ethics in Washington lacked urgency because government lawyers and official court filings had repeatedly stated that the fund was effectively being shelved. The judge described the dispute as an unusual one, given that the legal challenge centered on a program the government now claims it does not intend to pursue.
The proposed fund drew attention after emerging from a settlement between Trump and the Justice Department involving the president’s lawsuit against the Internal Revenue Service. The concept was designed to compensate individuals who claim they were unfairly targeted or mistreated by government agencies.
During the hearing, Leon pressed Justice Department attorney Andrew Block on why the administration had not formally withdrawn or rescinded the proposal. Block said he did not know the reason.
The judge also questioned how the administration’s position squared with Trump’s public praise for the idea and statements from Acting Attorney General Todd Blanche suggesting the project had been abandoned. Block argued that officials could still support the broader goal of addressing past government misconduct while choosing not to establish the compensation fund itself.
Leon appeared unconvinced by the explanation, warning government lawyers not to be evasive as he wrapped up the proceedings.
Although Leon denied the request before him, the broader legal battle is not over. A separate federal court in Virginia previously imposed a temporary pause on the fund. That order remains in place for now and is scheduled for further review during an upcoming hearing, where lawyers will continue arguing over whether the initiative can legally proceed.
For the moment, the administration’s own insistence that the fund has been abandoned proved decisive, allowing Leon to leave the proposal untouched while questions about its future linger in another courtroom.
