Individuals, Organizations Harmed by the Trump-Vance Administration Sue to Block $1.776 Billion Slush Fund
Lawsuit Challenges Taxpayer-Funded Payout Scheme
Alexandria, Va. —In the most comprehensive case of its kind, a broad coalition of organizations and individuals harmed by the Trump-Vance administration are challenging the $1.776 billion so-called “Anti-Weaponization Fund,” which the U.S. Department of Justice (DOJ) created through a private agreement with President Trump and his family following the president’s own lawsuit against the Internal Revenue Service (IRS). This fund allows the Trump-Vance administration to distribute taxpayer money with minimal oversight, transparency, or judicial involvement, while creating a politically discriminatory process that excludes many of the plaintiffs – people alleging abuses by Republican officials or administrations.
Harmed plaintiffs include former career Assistant U.S. Attorney and January 6th prosecutor Andrew Floyd, Professor John Caravello, City of New Haven, and National Abortion Federation. Additionally, Common Cause joins as a plaintiff because their mission is to safeguard taxpayer funds, and they are unable to do that if taxpayer funds are going toward a secret slush fund. All plaintiffs are represented by Democracy Forward.
In January 2026, President Trump, members of his family, and the Trump Organization sued the IRS and the Treasury Department over the disclosure of his tax return information. Rather than litigating the case, the department settled it by establishing a massive government-funded compensation program designed to benefit people wholly unrelated to the Trump v. IRS litigation. Many of these individuals, who claim they were victims of alleged “lawfare” or “weaponization” by Democrats or Democratic administrations, are now emboldened to continue unlawful activity, including the illegal harassment of abortion clinics and violence at polling locations around the country.
The lawsuit argues that the creation of the fund violates the U.S. Constitution, exceeds executive authority, unlawfully bypasses Congress’s exclusive authority over federal spending and appropriations, and violates the Administrative Procedure Act. The complaint also challenges the administration’s use of the federal Judgment Fund to finance the program. The lawsuit raises concerns about the secrecy surrounding the fund’s operations, including provisions that allow claims and payments to remain confidential and limit public accountability for how nearly $2 billion in taxpayer money is distributed.
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https://democracyforward.org/news/press-releases/individuals-organizations-harmed-by-the-trump-vance-administration-sue-to-block-1-776-billion-slush-fund/
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