The fund, titled "The Anti-Weaponization Fund," was created by Acting Attorney General Todd Blanche to provide a systematic process for individuals who suffered "weaponization and lawfare" to seek redress.
The settlement resolves the lawsuit filed by President Trump, Donald J. Trump Jr., Eric Trump, and the Trump Organization, LLC, against the Treasury Department and the IRS in Southern District of Florida federal court. The suit followed the leak of the plaintiffs' tax returns.
Under the terms of the agreement, the plaintiffs will receive a formal apology but no monetary payment or damages. In exchange for the creation of the fund, the plaintiffs agreed to drop their pending lawsuit with prejudice and withdraw two administrative claims, including one for damages resulting raid of Mar-a-Lago and another regarding the Russia-collusion hoax.
"The machinery of government should never be weaponized against any American, and it is this Department’s intention to make right the wrongs that were previously done while ensuring this never happens again," Blanche said in a press release. "As part of this settlement, we are setting up a lawful process for victims of lawfare and weaponization to be heard and seek redress."
The fund will receive $1.776 billion fund, a perpetual appropriation that allows the Justice Department to settle and pay cases. The fund has the power to issue formal apologies and monetary relief owed to claimants. Submission of a claim is voluntary, and there are no partisan requirements to file.
Any money remaining when it ceases operations will revert to the Federal Government. The fund must stop processing claims no later than December 1, 2028.
Principal Associate Deputy Attorney General Trent McCotter said, "The use of government power to target individuals or entities for improper and unlawful political, personal, or ideological reasons should not be tolerated by any Administration."
The fund will consist of five members appointed by the Attorney General, with one member chosen in consultation with congressional leadership. The President can remove any member, but a replacement must be chosen manner as the replaced member.
The Justice Department cited legal precedent for the fund, pointing to the "Keepseagle" case, in which the Obama Administration created a $760 million fund to redress claims of racism against the federal government. In that case, hundreds of millions of dollars remaining were distributed to non-profits and NGOs that never made claims.
On a quarterly basis, the fund will send a report to the Attorney General outlining who has received relief and what form of relief was awarded. The fund can be audited at the Attorney General’s direction and must take steps to protect private information and avoid fraud.