Legal Experts Warn Trump's Compensation Fund May Breach Previous Mandates
Trump’s $1.8B ‘slush fund’ appears to violate a mandate created more than a year ago: legal experts

Image: The Independent
The Trump administration's $1.776 billion compensation fund for alleged victims of weaponization may violate a mandate set by former Attorney General Pam Bondi. Legal experts argue that the fund could improperly benefit third parties not involved in lawsuits, raising concerns about self-dealing and legality.
- 01The fund was announced by Acting Attorney General Todd Blanche following Trump's withdrawal from a $10 billion lawsuit against the IRS.
- 02Former Attorney General Pam Bondi's February 2025 directive prohibits payments to third-party organizations not involved in lawsuits.
- 03Jennifer Ricketts, a former Justice Department official, criticized the fund's structure for potentially benefiting non-victims.
- 04Blanche acknowledged the fund's unusual nature but cited a precedent from the Obama administration regarding Native American farmers.
- 05Legal experts assert that the agreement could constitute illegal self-dealing by the Trump administration.
Advertisement
In-Article Ad
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.
Advertisement
In-Article Ad
The compensation fund could affect how future settlements are structured and who benefits from them, raising concerns about accountability in government actions.
Advertisement
In-Article Ad
Reader Poll
Do you believe the compensation fund is a legitimate use of taxpayer money?
Connecting to poll...
More about Justice Department

Acting Attorney General Todd Blanche Engages Senate Republicans Amid Challenges to Trump’s ‘Anti-Weaponization’ Fund
Cnn • May 21, 2026
Federal Judge Upholds Presidential Records Act Amid Trump Administration's Legal Challenge
The Economic Times • May 21, 2026
Officers Sue to Halt DOJ's Controversial 'Anti-Weaponization Fund'
Cbs News • May 20, 2026
Read the original article
Visit the source for the complete story.




