A federal magistrate judge in Virginia’s eastern district issued an order requiring the Trump administration to produce discovery materials regarding the establishment of a $1.8bn fund proposed to compensate individuals claiming to be victims of political prosecution. The order came in response to a lawsuit filed by Democracy Forward, a non-profit organization, on behalf of plaintiffs including a dismissed prosecutor and a college professor who was acquitted of charges related to an immigration raid protest.
Attorney General Todd Blanche stated last month that the fund, which he had proposed before his confirmation, would not move forward. In media remarks, Blanche characterized the fund as defunct and noted it never became operational. He argued that President Trump believed the Justice Department had been weaponized against Americans during the previous administration and that some individuals had experienced financial hardship as a result.
Democrats have contended that the fund would have been used to compensate individuals convicted and subsequently pardoned for involvement in the January 6 Capitol riot, among others. The proposed compensation arrangement emerged from a settlement agreement between Trump and the IRS concerning litigation over the disclosure of his tax returns. The agreement also provided protections against future tax audits for the president and his family.
In July, another federal judge determined that the parties had never possessed genuine legal conflict, and characterized Trump’s $10bn lawsuit against the IRS as a pretext for establishing the fund. The judge ruled that the settlement agreement lacked a valid legal or factual foundation and served an improper purpose.
The program faced opposition from members of both parties, including two Republican senators, which created complications for Blanche’s confirmation process. Critics have noted that settlement documents did not include signatories to the initial agreement, raising questions about potential revival of the arrangement. Trump has stated he wishes the fund had not been abandoned, though he has not foreclosed other potential compensation mechanisms.
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