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A $1.8 billion fund established by the Trump administration to compensate individuals who say they were targeted by the federal government has been put on hold, according to sources familiar with the plan. The fund, which emerged from a legal settlement between President Donald Trump and the Justice Department, has sparked legal challenges and political opposition from both Republicans and critics who called it a "slush fund."

Federal judges in Virginia and Florida issued orders on Friday temporarily halting the fund until June 12 and calling for further review. The Justice Department said it disagrees strongly with the court's action but will comply with the ruling.

Coverage comparison

Reporting on the development comes from two outlets with different geographic perspectives. The Jerusalem Post, citing three sources, emphasized the political dimension, framing the pause as a "rare rebuke" of Trump by Republicans in Congress. The South China Morning Post, citing two sources, presented a more legal-focused account, highlighting the settlement origins and court orders without the same emphasis on congressional dynamics.

Both outlets reported the core facts consistently: the fund was created as part of a settlement to resolve a $10 billion lawsuit against the IRS, was intended to pay $1.776 billion to people claiming government abuse, and faced swift legal and political opposition.

Key claims

  • Fund on hold: According to both the Jerusalem Post and South China Morning Post, the $1.8 billion fund has been temporarily halted, with the Jerusalem Post citing three sources and the South China Morning Post citing two.
  • Origins in legal settlement: The fund was established as part of a settlement between Trump and the Justice Department to resolve an unprecedented $10 billion lawsuit against the IRS over the alleged mishandling of his tax records. Both outlets reported this.
  • Purpose of the fund: The $1.776 billion was designated to compensate people who said they had been subjected to government abuse. Reported by both outlets.
  • Political and legal opposition: The fund sparked legal challenges and uproar, including from Senate Republicans concerned that participants in the January 6, 2021 Capitol attack could receive taxpayer-funded payouts. Critics condemned it as a slush fund. Both outlets reported these points.
  • Court orders: Federal judges in Virginia and Florida issued orders temporarily halting the fund until June 12 for further review. Reported by both outlets.
  • Justice Department response: A Justice Department spokesperson said the department "disagrees strongly" with the temporary halt but will abide by the court's ruling. This was reported by the South China Morning Post; the Jerusalem Post did not include this detail in the available text.

Perspectives

Political context: The Jerusalem Post highlighted the fund's pause as a "rare rebuke" of Trump, noting that Senate Majority Leader John Thune communicated to the White House that the fund needed to be killed. The report also linked the development to broader tensions between Trump and Republicans over a $72 billion bill to fund ICE and Border Patrol operations, with a White House source saying lawmakers "gave us an ultimatum."

Legal perspective: The South China Morning Post focused on the legal challenges, noting that federal judges in two states ordered the halt. The Justice Department's statement of disagreement, while pledging compliance, adds a layer of legal contention that the Jerusalem Post's account did not detail.

Critics' view: Both outlets noted that critics described the fund as a slush fund, but neither provided a detailed rebuttal from the administration. The White House and Justice Department have not publicly commented beyond the DOJ's statement on the court ruling.