The Trump administration's newly announced $1.776 billion compensation fund for alleged victims of 'weaponization' is under scrutiny for potentially violating a directive from former Attorney General Pam Bondi. Legal experts argue that the fund, which was introduced by Acting Attorney General Todd Blanche after Trump dropped a $10 billion lawsuit against the IRS, may improperly benefit third parties who are not directly involved in any lawsuits. Bondi's February 2025 memo explicitly prohibits settlements that require payments to non-governmental organizations that are neither victims nor parties to lawsuits, with limited exceptions. Critics, including former Justice Department officials, have expressed concerns that the fund is structured to provide payouts to individuals or groups who have not filed claims. Blanche defended the fund as 'unusual' but not without precedent, referencing a similar compensation fund established during the Obama administration for Native American farmers. Meanwhile, legal experts warn that the arrangement could represent a blatant act of self-dealing by the Trump administration, with implications for the legality of using IRS settlements for personal advantage.